Some have said equity crowdfunding could put pressure on the venture capital industry. But data compiled by crowdfunderEquityNet suggests it will open whole different categories of upstarts for funding instead.
“Crowdfunding is serving the area of capitalism that was previously underserved,”Judd Hollas, chief executive of the platform launched in 2005 told me. EquityNet, based in Arkansas, connects companies with accredited investors but will expand to offer equity crowdfunding open to all once the SEC issues rules allowing the practice.
Companies have raised more than $200 million on the platform since its inception.