Fundrise CEO Ben Miller, co-founder Dan Miller (who recently left Fundrise), and director of operations Max Kirschenbaum Crowdfunding startup Fundrise calls its newest real estate investment product “the biggest technological innovation in the history of finance.” And that’s far from the only apparent exaggeration it is using to drum up investor interest in its new mortgage REIT. Fundrise is selectively using facts and figures on its website in a way that may make its product look more attractive than it actually is – at least to many of the lay investors it is explicitly targeting. Though the practice appears to be legal, it raises a troubling question long on the minds of industry observers: is crowdfunding sufficiently regulated to protect mom-and-pop investors? (more…)
Source: The Real Deal
