Crowdfunding offers rewards, but not without risks

07/11/2013 | Washington Post (tiered subscription model), The

Online crowdfunding platforms MedStartr and HealthFundr connect innovators with investors to bring new drugs and devices through development and to the clinic. Crowdfunding offers new entrepreneurial opportunities, but critics say unsophisticated investors and desperate patients could end up wasting valuable time and money. "When you're going to put a drug in a human being, you can't do it in a garage," said FasterCures Executive Director Margaret Anderson. "You have to use the clinical trial infrastructure. That's how we've built our system, to ensure people aren't taking magic potions and being exploited."

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