Five Reasons Venture Capitalists Are Becoming Fans Of Equity Crowd Funding

It seems counter-intuitive: Some of the venture capitalists backing tech startups are now boosting a seemingly competing money source for their portfolio companies: equity crowd-funding. But leveraging equity crowd-funding alongside more traditional money sources can be a powerful combination, especially for consumer-facing companies.

"You’ve got the most loyal customer ever. They’ll never leave," said Buck Jordan, managing partner of Wavemaker Partners in Los Angeles, of the small-fry investors who use equity crowd-funding to grab a previously unavailable piece of pre-IPO startups. Jordan said Wavemaker is now urging many of its portfolio companies to consider crowd-funding as part of their money-raising strategy.

David Bloom

https://www.forbes.com/sites/dbloom/2018/10/22/equity-crowd-funding-venture-capital-investing-seedinvest-pongalo/#252eefb13f5b