In the past two weeks I have continued my in-depth research into equity-based crowdfunding and I can tell you that my thoughts have actually developed somewhat from what they were initially. I am now convinced that crowdfunding is going to play a significant role in the world of early stage funding, despite all the risks opponents frequently point out. Here are two major reasons why:
1. According to Fred Wilson, a highly respected venture capitalist from New York and also an excellent and very active blogger, $300 billion will be funnelled toward U.S. entrepreneurs in the next few years. His estimation is based on families and individuals investing 1 percent of their assets in crowdfunding. This $300 billion will dwarf the $30 – $35 billion that venture capitalists and angel investors put into the system.
2. The crowd is driven by the outcome as much as by the return – a professional money manager is not. So sectors that have been starved for capital since 2008 have a better chance of getting funded.
Equity-based crowdfunding is here to stay and I think it can also be a great way to fund graphene projects. If I saw a promising graphene technology on a crowdfunding platform, I would be inclined to fund that.
Obviously there are many hurdles to overcome before equity based crowdfunding will be an efficient and effective way to invest in graphene projects. Overcoming these hurdles is a challenge I’m currently spending a lot of time thinking on. If you got any ideas on this topic, feel free to contact me via e-mail or the comments section below.