Hollywood directors use it to bankroll movies. Musicians do it to finance records. A man named Zack Danger Brown raised $55,000 this way to make potato salad.
We’re talking about crowdfunding. The concept of crowdfunding is thought to have been invented in 2006, but has quickly become a popular way for people to raise money for a cause or to finance a project or business.
And those projects now include litigation. A litigation crowdfunding website or application lets anyone in need of backing for a legal matter raise money from anywhere in the world. And typically, when people invest in a matter, they are given a stake in the claim they have funded.
“I looked at litigation financing and couldn’t understand why more people weren’t investing,” says Jay Greenberg, CEO and co-founder of LexShares, a legal crowdfunding company. “I think the biggest gap is education or understanding the process. The crowdfunding mechanism makes investing more transparent and accessible to more people.”
Read the whole story at ABA Journal