Source - https://www.forbes.com/sites/adigaskell/2016/03/15/the-rise-of-investment-crowdfunding/#5ab644f74d9b
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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