Crowdfunding: The Good, The Bad, And The Ugly

good bad uglyGenerally speaking, I’m a huge fan of crowdfunding. I’m an investor in one of the major platforms, Indiegogo. Crowdfunding sites like Kickstarter and Indiegogo are helping fill the financing void for startups that struggle to find traditional financing. For example, I recently wrote about crowdfunding being a viable option for hardware startups who notoriously have a tough time attracting funding from VCs. But there is a bit too much hype around crowdfunding right now. And as we know from history, too much hype doesn’t always end well.

The Good: When crowdfunding works…

In particular, I’m bullish on crowdfunding when it’s about passionate consumers rallying around an idea, cause, or product concept they believe in. In this case, the funders have modest expectations…either a small perk (like a t-shirt) or just the simple satisfaction of supporting a company or cause they care about and watching it grow.

Read more at Version One Ventures

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