Memo to all those who think the crowd isn’t sophisticated enough to make startup investments: Crowdfunding isn’t all that different from raising money from venture capitalists, a new study shows.
A study by Ethan Mollick of the Wharton School of the University of Pennsylvania, brought to my attention by a post on Point of Law this morning, shows that people investing in crowdfunding campaigns have similar criteria to VCs making seed investments in fledgling companies.
Mollick examined 2,101 crowdfunded projects and came to the conclusion that the crowd in crowdfunding looks for similar signals of success as a venture capitalist.
Read more at Upstart Business Journal