Crowdfunding Now More Necessary Than Ever

Crowdfunding is taking on new importance as the Wall Street Journal reports that seed funding by venture capital firms fell 40% in 2014.

With massive (unrealistic?) valuations in more mature private companies (e.g., Uber), the VCs are looking to pad their results with sure things rather than taking startup risk.

Perhaps this is a healthy move away from a bubble mentality, or maybe the bubble is just moving further down the funding pike. However, when the venture money moves away from seed rounds, that leaves more entrepreneurs having to depend on friends, family, angels and the crowd.
http://blogs.wsj.com/venturecapital/2015/01/21/venture-investors-seeded-fewer-companies-in-2014/?mod=WSJBlog

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 and tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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