Will Crowdfunding Crowd Out Venture Capital?

May 29th, 2012 § 1 comment

Secret denunciations against anyone who will c...
Secret denunciations against anyone who will c...

Secret denunciations against anyone who will conceal favors and services or will collude to hide the true revenue from them. (Photo credit: Wikipedia)

Crowdfunding is a great but frightening development.

It’s great, and necessary, and obvious, just like democracy and freedom of speech.

But it’s not frightening because it threatens the VC‘s. I’m worried because the first wave of crowd ‘investors’ will inevitably do mistakes that VC’s have learned to avoid, this might cause much capital being allocated in wrong places, causing rouge behavior from ‘startups’ and render huge disappointments, amplified by media, making entrepreneurship a bad word.

there, i’ve said it. funding startups is a serious thing, not a game of tax evasion.

Will Crowdfunding Crowd Out Venture Capital?

Venture capitalists have been getting a black eye to go with their blue shirts. A recent report from the Kauffman Foundation slammed VCs for “shortchanging” investors, pointing out that public markets deliver better returns.

via: www.readwriteweb.com

somehow all this reminds me of elaborate public grants infrastructure in Europe, that’s causing half of economy to focus on filling out checkboxes rather than listening to customers. not sure why, but it feels like the same instrument in different clothes.

 

Tagged

§ One Response to Will Crowdfunding Crowd Out Venture Capital?

Leave a Reply

What's this?

You are currently reading Will Crowdfunding Crowd Out Venture Capital? at Rational Idealist.

meta