The Securities and Exchange Commission has yet to introduce regulatory guidelines for equity-based crowdfunding, but that hasn’t stopped some of the region’s venture capitalists from contemplating how it might impact their business.
Crowdfunding allows entrepreneurs to collect small sums of money via the Internet from everyday people who then become investors in their business. On its face, the practice seems to pose a threat to traditional venture capital firms that will face new competition for the best deals.
That’s not necessarily the case, some say. Capital Business spoke with several local investors to get their take on what equity-based crowdfunding means for the industry.