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This sounds like a terrible idea. From the founders' standpoint, you are presumably getting nothing other than cash. Doesn't the best investment money also come
by waylandsmithers 10y ago
This sounds like a terrible idea. From the founders' standpoint, you are presumably getting nothing other than cash. Doesn't the best investment money also come with expertise and guidance?
From the investors' standpoint, these are going to be the absolute riskiest plays on the planet, yet professionally produced kickstarter videos will make them think product is just about to roll off the production line once they have enough money.
- st3v3r 10y agoI imagine you wouldn't use it as your sole source of funding, but in conjunction with a more traditional source.
- jedberg 10y agoIt depends on the business. For a consumer oriented business, it could be great to have a whole bunch of people with a vested interest in your success.
- thirru 10y agoYou are discounting the power of small investors. There is a good chance that your unaccredited investors altogether will cast a larger network than your VCs. Also if done right they could become super fans and the best possible promoters of your product. They definitely bring something to the table, but it will be somewhat different than what you'd expect from a YC.
- rdlecler1 10y agoThis is seed stage, seed stage investors, even VCs, are making a lot of bets and generally don't have time to work with the company to add much value. Actually our biggest value add investors are also also our smallest.