Robotic Crowdfunding

Yes, you can raise money by crowdfunding, but is it the best way to do that? A recent Wired article suggests that some companies may be missing out on the strategic value add that comes from a respected VC team that backs your project. So, while you get free cash, you receive no help with important relationships, project management, or in running the business.

Alternatively, Dash Robots intends to use the event to plug into its customers to discover product preferences and costs, get feedback, and test pricing elasticity.

But what really seems to be happening is that crowd funding is filling the gap between three F funding (family, friends and fools) and VC funding that is now requiring proof of concept and a customer list.

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at:
This entry was posted in Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, FINRA, Funding Portals, Investments, Jobs, Legislative Intent, SEC, Small Business, Venture Capital and tagged , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.