How I Stopped Worrying and Learned to Love Equity Crowdfunding

Recently there has been some concern about the risks that accepting equity crowd funding may present to a company if they were to seek Venture Capitalist or other institutional funding later. David Marlett, the Executive Director of the National Crowdfunding Association has a useful post discussing why the concern is overblown and what steps entrepreneurs can take to structure their crowdfunding so that they, and their “crowdholders”, are not at a disadvantage when it comes time to get VC funding.

The fact is that VCs are intelligent, adaptable people …otherwise they wouldn’t make it to be VCs. So long as an entrepreneur is smart about HOW they structure their crowdfunding it shouldn’t present an insurmountable problem when it is time for VCs to enter the picture.

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