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