Crowdfunding Used To Bolster Stalled Startups

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.
http://www.bloombergquint.com/technology/2016/12/22/taskrabbit-s-stalled-revolution

Advertisements

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 accredited investor, checkbook, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, SEC, Small Business, technology and tagged , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s