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  1. #1
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    As an angel investor which crowdfunding platform do you prefer?

    What has been your experience with equity investing via crowdfunding platforms? Which one do you like the most for discovering start-ups in which to invest?
    How were you pitched? How would you rather be pitched?

  2. #2
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    Anything about this trend will help, I am looking to gather informations about this subject before fully jumping into it.
    Why would one prefer the crowdfunding over simply investing in the stock market,

  3. #3
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    Have invested in 3 startups so far through AngelList. Have used both methods available there - investing directly by viewing a startup's pitch and investing through a syndicate created by a lead investor. Even though both models worked well enough, I prefer the direct investing as it leads to a one-to-one communication and relationship with the startup's founders and also there is no carry to be shared with AngelList or the lead investor.

  4. #4
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    Why would you not participate in them all?

    Crowdfunding platforms are themselves akin to VC firms. They fund startups with which they are familiar, related, and/or in a shared vicinity.

    VC firms/funds invest in different startups depending on the experiences, interests, networks, and ambitions of the LPs. There is little reason to prefer a specific VC as they don't really compete with one another, they complement; each enabling for entrepreneurs access to capital wherein the partners share experiences interests, networks, and/or ambitions.

    So what do I mean when referring to those three considerations?
    Familiar: Crowdfunding platforms are run by people with experiences just as VC firms are run by partners with experiences. Opportunities therein will often align the experiences of those people as while two startups may offer and equal opportunity to an investor, people support that which with they are familiar. If, at the end of the day, you prefer seed stage wearable opportunities, seek those experienced individuals (other angels, entrepreneurs, and crowdfund platform teams) and learn from their participation.
    Related: A platform that favors mobile apps, CPG, or tech startups is more likely to see more deals in that respective industry. While the only way you'll the most opportunities to invest is by participating in every platform, if you are interested in a specific industry, vertical, or stage, seek those that align.
    Vicinity: Where is the platform focused? It might be where you live or where the company is headquartered; then again, it might not. If you're interested in supporting the Raleigh-Durham ecosystem, seek what's involved there.
    It's also important to keep in mind the distinction between licensed broker-dealer platforms, platforms using a third party's broker-dealer, and platforms that don't have any such licensing (which at this point, can really only support reward based funding or foster syndicates - which is distinct from what most mean when they say crowdfunding as syndicates are just accredited investors following the lead of another).

    Platforms that are themselves a broker-dealer have licensed professionals whose responsibility is due diligence, support of your investments, and compliance. That very platform, does those things. Those that leverage the license of a third party are able to provide the same advantages but through a 3rd party.

    Far more words than necessary to make my point which I think is that preferences are entirely personal and the only way to leverage crowdfunding platforms in such a way that you have the most opportunity to diversify your portfolio, is to stay informed through them all - or at least the subset of those most appropriate to your interests.

    As the industry continues to explode, we'll see more comparisons of platforms, we'll have directories of the platforms, and pundits will discuss the merits and returns of the various options. At the end of the day, all that matters is what best suits your tastes as an investor.

  5. #5
    There are several crowdfunding platforms but i think the best ones are the Kickstarter Probably the hottest crowdfunding site on the Internet then Indiegogo and lastly Rockethub.

  6. #6
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    Quote Originally Posted by Cavender View Post
    Have invested in 3 startups so far through AngelList. Have used both methods available there - investing directly by viewing a startup's pitch and investing through a syndicate created by a lead investor. Even though both models worked well enough, I prefer the direct investing as it leads to a one-to-one communication and relationship with the startup's founders and also there is no carry to be shared with AngelList or the lead investor.
    Yeah. But how does that compensate for the risk that comes with start ups? My fear have always been that most start ups eventually crash after a short time. I am more concerned with risk management.

  7. #7
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    Quote Originally Posted by markallen View Post
    At the end of the day, all that matters is what best suits your tastes as an investor..
    It guess this is what it finally balls down to.

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