Some have said that crowdfunding will somehow replace angel investors or venture capitalists. Ryan Feit doesn’t see it that way, and it’s not how SeedInvest, the New York City crowdfunding site he co-founded, is operating in its first few weeks.
Instead, he told me, SeedInvest is partnering with angel groups on choosing which companies get to raise money in return for equity on the site. And though just two companies have so far completed the fundraising process in the site’s six weeks of operations, he sees no reason for that to change.
“We had to find a way to work with the existing ecosystem of angel groups and VCs,” he told me. “Our focus has been ‘let’s work with the existing ecosystem’.”