Tag: Equity Crowdfunding and Venture Capital Survey

By all accounts, crowdfunding is still in its infancy. For the unfamiliar, crowdfunding is where individuals join together to raise capital online. Crowdfunding, as we know it now, comes in two flavors: donation-based crowdfunding: Individuals band together to fund projects, events, and social causes. In return, individuals donating via crowdfunding receive the pleasure of doing good and frequently, there’s some type of prize associated with giving levels (not unlike general charitable giving campaigns). equity-based crowdfunding: In this type of crowdfunding, individuals don’t donate money —  they invest it. Typically, funding is restricted to accredited investors (who meet certain net-worth and/or income levels) who receive an equity share in a company in return for their money.  The JOBS Act in 2012 set the stage to open equity crowdfunding to the non-accredited investor audience (read, everyone else), though in reality, guidelines have not yet been set. How traditional VCs view crowdfunding Clearly, equity based crowdfunding (and crowdfunding, in general) has the potential to really change the way we invest in private companies. I think there will always be room (and money)...