Will crowdfunding disrupt the Venture Capital investing model in the US?

4/8/2017 5:19:16 PM,
Richard Swart, PhD replied:
In short, no.  Evidence globally shows that crowdfunding exists alongside other traditional forms of capital formation. Crowdfund Investing can supplement or replace the friends and family/seed round (RegCF), act as Seed/Seed+/Angel Round (RegCF or Title II), or even replace a public offering under $50mm (Regulation A+). However, for firms that are in the limited range of venture interest - easily scalable, TAM of at least $500mm/year, the ability of a Venture Firm to bring rapid additional cycles of financing will often require firms to continue using VCs.
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4/8/2017 5:19:16 PM,
Richard Swart, PhD replied:
In short, no.  Evidence globally shows that crowdfunding exists alongside other traditional forms of capital formation. Crowdfund Investing can supplement or replace the friends and family/seed round (RegCF), act as Seed/Seed+/Angel Round (RegCF or Title II), or even replace a public offering under $50mm (Regulation A+). However, for firms that are in the limited range of venture interest - easily scalable, TAM of at least $500mm/year, the ability of a Venture Firm to bring rapid additional cycles of financing will often require firms to continue using VCs.
archived comment | Permalink