WASHINGTON — Crowdfunding is about to go big time.
For years, filmmakers, artists and charities have used the power of the Internet to generate money for projects. But in the coming year, with the blessing of Congress, startups will be allowed to raise money this way by selling stock to small-time investors.
For those investors, it's a chance to make a small profit and possibly get in early on the next Twitter or Facebook. But it's also extremely risky, given that a majority of startups fail. And critics warn that investment crowdfunding is ripe for fraud.
