DELOITTE Warn On Crowdfunding

Even if VC portals become larger due to beneficial regulatory changes, they may still only capture a small share of the VC market. Startup companies value the intangible contributions such as knowledge and networks that an experienced VC provides. Also, regulations protecting casual (non‑accredited) investors may remain in place for many jurisdictions. Finally, investor enthusiasm may be dampened once crowd investors experience their first ‘burn’.

Crowdfunding will more likely have a role in complementing traditional VC, generating additional capital at the ‘friends and family’ stage of funding,

Deloitte concluded. View Full Story