Is A Crowdfunding Bubble Forming?

Is there a bubble forming in the crowdfunding platform arena?

In early 2012, CrowdTilt raised over $12 million from seed and angel investors. Reportedly, it was not looking for a B round when Andreessen Horowitz and other big name VCs poured in another $23 million.

CrowdTilt allows friends and family pool their funds to help finance small projects that are community oriented. The average campaign raises just $1,320 and boasts a higher than 34% success rate. Its fees are 1% via the application, 2.5% otherwise.

Betting that crowdfunding will become mainstream, the smart money is diving in.

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 Broker dealers, 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, Venture Capital and tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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