Crowdfunding Helps Underserved Investment Markets

A University of California study has determined that crowdfunding has opened the financing spigot for startups in regions of the United States not served by venture capitalists (i.e., places other than Silicon Valley and Boston which accounted for 50%+ of all VC investments).

Locations with the “largest number of successful Kickstarter campaigns have not been magnets for venture capitalists’ investments, such as Chicago, Los Angeles and Seattle.”

In addition, the attraction of crowdfunding money tended to increase the likelihood of additional VC investment.

Read more at: https://phys.org/news/2017-01-crowdfunding-underserved-regions.html#jCp

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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, Broker dealers, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, Funding Portals, Investments, Jobs, Legislative Intent, SEC, Small Business, technology, VC, Venture Capital, Wall Street and tagged , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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