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  1. #11
    Im sorry but this is a foolish question. Crowdfunding is basically pre-ordering a product, and Venture Capital involves buying shares. If you're doing equity crowdfunding it can be closer to venture then, but venture funds invest tens of millions where as crowdfunding equity is typically smaller investors investing small amounts.

  2. #12
    Member
    Join Date
    Mar 2015
    Location
    Boston
    Posts
    52
    Difference between crowdfunding & Vc depends on one question.

    Question is - What type of crowdfunding you want to do?

    If you want to go with Reward/Donation type crowdfunding then - 1) you are not giving up equity in your company. And 2) you will need to have an actual deliverable to each contributor.

    For accredited investor crowdfunding, it is also very different from VC money. With VC money, you get an organized investor that does its due diligence and is there to help you becomes successful. However, there is a price to that, and VCs are not only very picky, but also have the leverage at the table.

    Accredited crowdfunding, on the other hand, typically does not involve an organized investor. Instead, you get a handful of angel investors who likely want a more passive investment than VCs. They may not help you be successful, but they will get you some capital.

    This is what is the core difference.

    Thanks

    Fundraisingscript.com
    a Hidden Content solution.

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