Why is equity crowdfunding not just corporate finance? The main difference is in the perspective and a in different approach in supporting entrepreneurs. For instance, as banks and VCs have their own approach to funding so equity crowdfunding should have its own. It could seem quite straightforward but it’s not as the industry runs the risks to struggle in building its own identity in a fast-paced period in which the sector is literally booming.
In this respect, an expert from Invesdor’s argues:
I feel that the way forward for equity crowdfunding is in encompassing the whole spectrum from seed stage to IPO. Resisting the urge to focus solely on big transactions pays off in the future as platforms are involved in building good equity stories.
Crowdfunding platforms should follow businesses from start to exit and beyond, because good stories make for happy investors.
(…) Crowdfunding should focus on bringing the possibility of being part of such stories to the small retail investor as well as the professional family office manager or business angel.
What this requires from both investors and crowdfunding platforms is a focus on the long term. After all, good stories aren’t built overnight.
Like Rome, which wasn’t build in a day.
Oliver* 