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  1. #1
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    What's the difference Venture Capital and Crowdfunding?

    How does these two differs?

  2. #2
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    Hi, Read this article on Fortune: http://fortune.com/2013/04/03/ventur...lets-get-real/

  3. #3
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    The article was good. Thanks for sharing.

  4. #4
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    Venture capital (and angel investors and private equity) were just about the only option for early stage companies to go to when they needed cash, before equity crowdfunding came along.

  5. #5
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    So equity crowdfunding is like an advanced form of those yeah? Okay.. Making more sense i guess

  6. #6
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    In short, whereas VC’s money is hauled in by “closing the deal” and single selling moments, crowdfunding really is investment marketing. If we look at the dynamics during the campaign I could swap “the company” for any other product and it wouldn’t be called “crowdfunding” but “marketing”. Analysing and setting up various campaigns, the 4 (or 7) P’s are a great way to make entrepreneurs think about what they’re selling and how they’re attracting enough customers, emphasizing the strong marketing dynamics that really separate crowdfunding from VC funding raising.

  7. #7
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    Quote Originally Posted by Markallen View Post
    In short, whereas VC’s money is hauled in by “closing the deal” and single selling moments, crowdfunding really is investment marketing. If we look at the dynamics during the campaign I could swap “the company” for any other product and it wouldn’t be called “crowdfunding” but “marketing”. Analysing and setting up various campaigns, the 4 (or 7) P’s are a great way to make entrepreneurs think about what they’re selling and how they’re attracting enough customers, emphasizing the strong marketing dynamics that really separate crowdfunding from VC funding raising.
    Good stuff. Thanks

  8. #8
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    Generally, crowdfunding is inferior. With venture capital you get a. Relationship with a capital source who will provide advice and further rounds of funding. Crowdsourcing can work if it's consumer-oriented and the consumers are really excited, like a video game. Crowdsourcing also means a single round of funding.

  9. #9
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    Angel investors are seed capital investors such as family, friends, relatives and colleagues who would provide an investor basic capital or initial capital for investment in order to start business.
    Venture capitalist are those who comes into picture when an entrepreneur doing business needs large sum of money and the same is financed by them. They are long term investors who are prepared to take risk in case business of entrepreneur fails.
    Crowdfunding is the practice of funding a business by raising monetary contributions from a large number of people, typically via the internet.

  10. #10
    Your Article answered the question, thanks for sharing.

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