TL;DR - Equity crowdfunding is a growing fundraising option for startups that is altering the VC landscape.
Helpfulness - 3
Tags - notable investors, future vc
- What is investment crowdfunding?
- How might it be shaping the future of VC?
- Rise in crowd-investment platforms in recent years.
- Areas include real estate, education, even legal battles.
- Not just benevolent crowdfunding like Kickstarter — investors expect a return.
- The World Bank predicts that crowdfunding in developed countries will be an almost $100 billion-a-year market by 2025.
- One potential difficulty is building trust with the crowd, but low public trust in traditional finance and low interest rates mean crowdfunding is likely to grow either way.
Follow up links:
- Equity crowdfunding, https://www.startengine.com/equity-crowdfunding
- Benefits of crowdfunding for female founders? http://faculty.haas.berkeley.edu/gorbatai/working%20papers%20and%20word/Crowdfunding-GenderGorbataiNelson.pdf