The changing nature of venture capital by Adi Gaskell

TL;DR - Equity crowdfunding is a growing fundraising option for startups that is altering the VC landscape.

Helpfulness - 3

Tags - notable investors, future vc

Questions addressed:

  • What is investment crowdfunding?
  • How might it be shaping the future of VC?

Summary:

  • 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.

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