Crowdfunding appears to be democratizing access to capital among a larger pool of innovators who are coming up with innovative ideas around the U.S. We’re seeing that this trend is very strongly positive and has been increasing over time.
-Wharton management professor Valentina Assenova
Crowdfunding is big business, and the success of household names such as craft beer brand BrewDog and challenger bank Monzo has catapulted the investment class into the mainstream.
Taken together, the new federal and state rules give entrepreneurs a much wider set of options for raising money from a diverse pool of investors.
-New York Times
“The potential for crowdfunding is immense, and we’ve just barely scratched the tip of the iceberg,” said Anindya Ghose, a New York University professor who studies crowdfunding.
…”A democratization of investing. Even if they’ve already raised capital from private investors, companies see the change as an opportunity to build a larger community around their companies.
Crowdfunding puts the control back in the hands of startup founders by allowing them to raise capital
-Business News Daily
For decades, only Wall Street and the uber-wealthy were able to invest in companies for an equity stake; so Main Street figured out a way around this. Crowdfunding connects startups and nonprofits that need funds for their ideas with individuals who have money and believe in them. But crowdsourcing means much more than raising funds from the public. If done right, it can be very rewarding.
For many modern entrepreneurs, equity crowdfunding is a godsend. It allows them to quickly and conveniently accumulate the capital they need to get started without having to hunt for the perfect individual investor or take on debt.
Crowdfunding is not only a source of financing for start-up companies, it’s also a potentially powerful tool for big companies looking for customer input during product development because customers willing to put money into developing a product are going to be more engaged than people in a focus group.
Crowdfunding Can Deliver More Than Just Money
-Harvard Business Review