Institutional Investors Trending In Crowdfunding Campaigns

The newest trend in crowdfunding appears to be the more aggressive participation of institutional investors swooping in to take large pieces of campaigns.

The United Kingdom’s leading equity crowdfunding platform CrowdCube says that “Around 10% of all businesses funded on our platform have some form of VC, institutional or corporate investment…” which rises to about 50% for growth stage companies.

The portals are also seeing more co-investments where the VCs are investing alongside the crowd, notwithstanding their prior nose-holding of crowdfunding companies.


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:
This entry was posted in accredited investor, Banks, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, Funding Portals, Jobs, Legislative Intent, SEC, Small Business, VC, Venture Capital, Wall Street and tagged , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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