ECONOMICS - Why We are Picky: The Importance of Curation in Crowdfunding

One of the questions I am asked most frequently is: How do you choose the companies featured on CircleUp, our equity-based crowdfunding platform? For donation based crowdfunding sites like IndieGoGo, any person, company or project can raise money, with the prominence of the project dictated by its ensuing popularity. When people are giving $50 to support a cause or because they want to pre-buy some product, that works well. However, we believe the equity-based crowdfunding model requires a higher standard. Investors are investing their money in search of risk-adjusted returns, the same way as they would in a stock or bond.

http://www.forbes.com/sites/ryancaldbeck/2012/11/20/why-we-are-picky-the-importance-of-curation-in-crowdfunding/