informationarbitrage:
Crowdfunding is all the rage. Even the SEC recently blessed one type of crowdfunding for which there was risk of an enforcement action. Several in the early-stage ecosystem have called for VCs to “up their game,” as alternative paths to financing create competitive threats to both incumbent…
A great breakdown of VC versus crowd funding, but for me the most important difference is missing: VCs have a very specific and narrow definition of success, whereas crowd funding opens a more diverse range of acceptable outcomes. I think VCs have been a bit myopic on this topic: not everyone wants to play their game. Crowdfunding opens up the door to a class of startup between small business and billion dollar exit, and that is a win for long tail consumers and the founders who want to serve them.