Ask PG: How will crowd-funding affect YC and the VC industry?

https://news.ycombinator.com/item?id=5968547

by ppod1991 • 13 years ago

7 3 13 years ago

news.ycombinator.com

In your latest post, you talked about trends in venture capital, but didn't bring up recent trends in crowdfunding. How do you think crowdfunding will change the game for both YC and the venture capital industry?

pg• 13 years ago

It already affects us a bit, because some of the companies we fund have raised money through these services. But I have no idea what long term effect it might have.

malandrew• 13 years ago

What advice do you give companies that go that route so that nothing they do in earlier rounds ends up as a black mark on the schedule of exceptions?

How are companies that crowdfunded in earlier rounds being received by traditional VCs? What do they check for before making any investments in a startup that took non-traditional finance in early rounds?

shloime• 13 years ago

It seems to me that the crowdfunding trend puts allot more power in the hands of entrepreneurs who now have access to outside funds and a product runway. The true test will be when (if) the Jobs Act ever goes into effect. That should have far greater ramifications than reward based crowdfunding.

Ask PG: How will crowd-funding affect YC and the VC industry?

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