The Advancement of Crowdfunding | Big Think

I think crowdfunding is a wonderful democratization of capital. It allows any more people to come into the marketplace. Here, 24 when companies had to market themselves in closed networks that were presented as accredited investors by people they knew and had to go around.

We have one-on-one or in groups of people to promote your company and try to raise capital. Today, the platforms for crowdfunding really open it up to anyone that can qualify as an accredited investor to really see all kinds of deal flow. So that's a good thing.

I think what we need to look at is, as we develop this marketplace, most of it is early seed stage funding that is going on. So what is the next level? What is this? Where does this play in the food chain of capital raising?

Right now, it is mostly at the seed stage. I think that one of the wonderful questions we'll explore at Exponential Finance is what are the next stages? How do venture funders look at the crowdfunding group of people as shareholders in the company? Will crowdfunding go to the next level and raise significantly more, really challenging some of the venture firms in funding companies?

Unlikely that it would be at the twenty-five, fifty, and a hundred million dollar levels, but it certainly could be at the five million dollar level where a lot of early-stage venture firms are today.

I think that angel investing clubs, which are very popular now around the country, and I know for those that are investing in women, we have Belle Capital, Golden Seeds, and Thirty Seven Angels, and they're all over the country. But how do they feel?

I think there's a little feel of threatening their marketplace by crowdfunding. So I think there are a lot of questions about how companies present themselves. But I do think, bottom line, it is a democratization of capital, and it'll work its way out in the marketplace.

It'll be a mature way of raising funds as we go forward. So I think it's a very exciting time in the marketplace, and this I think is going to loosen up some of the capital that is really in the hands of individuals around the country who haven't had the opportunity to really see a good deal flow. They are going to be able to access it now if they want to be active on any of these platforms raising funding.