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I went to a presentation about this Tuesday. What became apparent is not just that crowdfunding will open up all sorts of revenue to startups, but that it will
by jerrya 15y ago
I went to a presentation about this Tuesday.
What became apparent is not just that crowdfunding will open up all sorts of revenue to startups, but that it will also create opportunities for new services dedicated to the crowdfunded startup industry.
Just as now we have startups whose market is startups and their needs, so too crowdfunded companies will need specific guidance and services in terms of how to structure offers, issue press releases and other information packets to deal with hundreds or thousands of small investors, respond to questions from these investors, and perform other duties different from those that are needed by startups who fund from far fewer and more sophisticated investors.
I think if I knew a few financial lawyer friends and had some capital, it might be a good place to be.
- antonej 15y agoThat description encapsulates why crowdfunding will be a last resort for many, if not most, entrepreneurs. Most founders I know would rather bootstrap and not take money from one investor, let alone hundreds. They generally go with angels for a seed round and VCs if and when they need a $1MM+ real Series A round. It's frankly a PITA dealing with a large number of investors; leanly staffed early stage startups have so many other things to worry about. I can tell you none of my clients (all of whom are entrepreneurs) are clamoring for this.
- milkshakes 15y agoThis is what ProFounder wanted to be. Sadly they were ahead of their time.