3 Reasons Why Equity Crowdfunding is Eroding Attractiveness of VC, according to Ron Wiener

Ron Wiener is CEO at iMovR. He argued on Venture Beat, a leading source for latest technology news, that equity crowdunding has become an exciting alternative to VC. Why? Let’s see what he wrote.

1. THE VISIBILITY EFFECT

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“While equity crowdfunding rounds attract large numbers of small investors, these angels become avid brand ambassadors for companies and help them generate more visibility and sales.”

2. THE OPACITY EFFECT

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“Valuations tend to be slightly better because there’s less of a discount for opacity as compared to private companies.”

3. ENTREPRENEURIAL FOCUS

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“After the round, management gets to focus on running the company rather than deconflicting their VCs from the rest of their constituents.”

Find out more here.

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