Equity crowdfunding will be subject to SEC regulations that include a requirement for audited financial statements in many instances, as well as on-going SEC reporting. Also, many Series A round investors have indicated that they would shy away from follow-on investments in an equity-crowdfunded company because there will be too many "small" investors and the extra costs involved.
In contrast, non-equity crowdfunding (such as a Kickstarter campaign) is not subject to SEC regulations. Contributors usually get a coffee mug, tee-shirt or early release of a product, but no shares.
For "investors", are they better off with a coffee mug and a thank you, rather than shares in a start-up saddled with the extra costs and issues identified in these articles? And, in a non-equity crowdfunding campaign at least you have another coffee cup or another tee shirt to show what you supported."
Also see my tweets:
Crowdfunding comes up short: Why the final part of the JOBS Act will never work http://gigaom.com/2014/02/19/crowdfunding-comes-up-short-why-the-final-part-of-the-jobs-act-will-never-work/ … via @gigaom - Another point of view!
Can the JOBS Act Save The American Dream? | Crowdfund Insider http://www.crowdfundinsider.com/2014/03/33195-can-jobs-act-save-american-dream/ … #crowdfunding via @crowdfundinside - Not w/out change.