Equity Crowdfunding
topic on 6 shows · 16 statements across 12 episodes
the Y Combinator Startup Podcast
Startups For the Rest of Us
Top Founders
All-In
TBPN
20VC
16 statements about Equity Crowdfunding, every show
Cuban: Opposes equity crowdfunding because retail investors lack liquidity
“I've been anti
It's not sweat equity crowdfunding, right?
Crowd equity programs against it because there's no liquidity.
People love a company, the next Figma, and they put in their life savings because they know Figma is going to the moon, baby, and they can…”
Equity crowdfunding splits evenly between direct networks, secondary networks, and outsiders
“Sometimes they say that one third comes from your network. One third comes from the network of your network. And then one third, like honestly comes outside of that. And I might say that's pretty close to the truth.”
Calacanis: Equity crowdfunding costs hundreds of thousands versus zero for DAOs
“It cost tens of thousands to hundreds of thousands of dollars to do an equity crowdfunding. This cost nothing.”
Norris: Black Hops Brewing has 600 equity crowdfunding investors
“Like, because we've done the equity crowdfunding, we've also got 600 investors.”
Spetty: Successful equity crowdfunding requires leveraging an existing loyal audience
“So the key is to figure out where is your loyal audience? Like who knows who you are already, because that's what you have control over. So if you have an email list or people know who you, the entrepreneur, if you're a category expert or something, right, tha…”
Latka: Crowdfunding campaigns must secure major soft commitments before public launch
“If you want to raise 200 grand, what you do is you say, We're raising 300 grand. You go get soft commits of 200 grand, so that you hit 200 grand on day one, and so you're definitely gonna hit your target, and then other people who you don't know coming into th…”
Montgomery: Equity crowdfunding requires an existing community to succeed
“I think to be successful at raising money through a crowdfunding platform like this, you really do have to have a community around the company. I think going in there cold would be a mistake.”
Altman: Equity crowdfunding primarily multiplies capital from professional investors
“The thing that I still see going most wrong with crowdfunding for startups is it's easy if you're a startup that doesn't need it because you already have very well-known investors. But thus far, when it comes to equity crowdfunding, the crowd has been less wil…”
Miller: Crowdfunding rules let companies set their own terms
“One of the main advantages for companies raising capital under these rules is that they get to set the terms.”
Miller: Large VCs pose higher exit litigation risk than retail crowdfunders
“I think there's an inversion of risk, and here's what it is, if you have Other sophisticated venture capital, super angels, high net worth individuals in your round, and something along the lines of what you described occurs, where there's an exit, but for som…”
Glenn: Equity crowdfunding will complement venture capital, not displace it
“I think it's going to be a sympathetic relationship. You know, there are instances when companies need 50, a 102 hundred, fifty million dollars to grow in scale, and the crowd is never going to provide that capital, and I think VCs provide important seats at t…”
Mitra: Equity crowdfunding and VCs will collaborate rather than compete
“I don't think they are. I think look, the ecosystem is evolving, and actually there is room and requirement for both types. VCs have been around for ages, and VCs are sort of classes, you know, a capital pool with discretionary decision-making to invest in com…”
Mitra: Easily understandable consumer products perform best in retail crowdfunding
“I think there is some evidence to suggest that easy to understand products generally tend to do better in terms of the retail crowd getting involved.”
Mitra: Major consumer brands will eventually adopt equity crowdfunding
“You would need the idea to be easily understandable, and that's the reason why big consumer facing brands might end up going down this route more often than not which we haven't seen yet. So, so really big brands, brands still haven't picked that up, but I thi…”