Dienstag, 9. April 2013

The Battle: Crowdfunding vs. VC


Is there a win-win?

Here's Ehrenberg:

VCs, regardless of how streamlined their process might be, will always represent more friction and require more effort in order to close a round. They will ask more questions. Spend more time. Likely distract to a greater extent. But, in my experience, this process is often healthy for the start-up founder and forces a level of self-awareness, insight, professionalism and transparency that did not exist previously.

One thing he doesn't cover is how crowdfunding, as it grows more ubiquitous, will actually work hand-in-glove with venture capital. That's the way Navin Chaddha, managing director at Mayfield Funds, sees it.

In an interview with Cromwell Schubarth of the Silicon Valley Business Journal, Chaddha points out that crowdfunding will serve as another form of angel investing, while VCs will still be needed for the larger amounts of money growing startups need.

"Entrepreneurs who might have small ideas can go raise money. But if you’re going to build real companies, you will need venture capital because crowdfunding is not going to give $30 million or $40 million in funding," he said. View The Full Story by Kent Bernhard, Upstart