Crowdfunding is now becoming a means to bolster stalled startups.
TaskRabbit, once a darling of Silicon Valley, was not finding customer traction and needed more money to keep going.
So, in addition to doing a “down round,” TR opted to raise funds using crowdfunding.
The offer to DreamFunded investors valued each share at less than a third of their value from a previous fundraising round in 2012.
So, crowdfunding continues to offer investors more risk, whether at the startup or retrenchment phase of a company’s growth.