Venture Capitalists Prepare For The Impact Of Crowdfunding

Re:Venture Capitalists Prepare For The Impact Of Crowdfunding by jonathanjaeger on Monday February 25, 2013 @10:14PM (#5283700)

Having a top-tier VC invest in you is an outside signal of credibility in recruiting, PR, marketing, and other areas. VCs who are competing for the best deals are creating new methods of adding value outside of "just a check." This can't be replaced by crowdfunding, at least not soon.

Alternatively, take a look at a lot of the hardware/product projects on Kickstarter. Those startups are using Kickstarter as a platform to show their idea is wanted and credible. So then the VCs who passed on the risky venture come in later after the idea is validated to a certain extent. They might not see the same upside but they're also taking on less risk.

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Re:Venture Capitalists Prepare For The Impact Of Crowdfunding by janson0 on Monday February 25, 2013 @10:53PM (#5283839)

I think many people over look the value of the network you get via the VC. Start ups look to much at the money and not at the outside benefits of getting plugged into a particular network. It is hard to believe that crowdfunding for equity is going to really enable this same network effect.

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