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.