Start-ups And Vc: Is Crowdfunding The Next Big Thing?

by Mark Schacter on March 19, 2012 in General Business

I admit it. As a recruiter, I am fascinated with start-ups. In my 14+ years of recruiting experience I have had the pleasure of working with many start-ups. Some have made it to IPO stage, some were acquired by brand-name companies and others, well, weren’t as fortunate. Such is the life of a start-up.

Besides the necessity of having a viable concept and market demand, the lack of funding is often the death knell for company’s success. Over the past decade we’ve seen an increasing number unconventional investors come up with some creative ways to find and fund new start-ups.

Riding the

Crowdfunding Wave

Efforts like Y Combinator, Kickstarter, AngeList and an endless supply of local business accelerators have seeded start-ups that might never have caught the attention of traditional VC resources. Success stories Pinterest, Dropbox, Reddit, Tik Tok, countless game development companies, short films and music projects owe their success to these innovative funding venues.

The recent “Crowdfunding” legislation (H.R. 3606 and S.1791) now making its way through congress looks to be the next big thing in start-up funding. With overwhelming bi-partisan support this legislation would almost surely become law. This new law would allow start-ups to raise funding by essentially “going public” from day one. Of course certain restrictions do apply.

Consider the impact this could have on the U.S. economy by opening the floodgate for innovation. Investor will have a whole new market of investment opportunities and more start-ups mean enormous potential for job creation. This is a win, win, win idea that should be put into play as soon as possible.

If you’ve been pondering the idea of your own start-up, another funding option for getting your venture off the ground should soon be available. This is a great time to be an entrepreneur!

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