Early Stage Crowdfunders May Gain Over VCs Chasing Bubble

The Wall Street Journal reports today that venture capital firms raised $33 billion in 2014, a 62% increase over 2013 and the largest amount since 2007.

With the stock market providing liquidity for 105 venture backed companies last year, more VCs and their investors are able to see high returns in the future and want to re-cycle their investments.

The hunt for pre-IPO investments is so hot that private company valuations are hitting atmospheric levels, with basically asset-less companies like Uber being touted at tens of billions in value.

Bubble time?

Crowdfunders should let the big dogs chase the same deals while panning for gold in the river of opportunity.

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: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
This entry was posted in Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, Film, FINRA, Funding Portals, Investments, Jobs, Legislative Intent, SEC, Small Business, Venture Capital, Wall Street and tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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