Home > crowdsourcing, peer to peer lending > crowdsourcing or private equity in sheep’s clothing?

crowdsourcing or private equity in sheep’s clothing?

I have been following the crowdsourcing revolution with a very keen eye for the past year and its developement has been outstanding. Crowdsourcing is simply using the power of  the internet to harness capital for small businesses, but  simultaneously have a social impact. The people who invest in these businesses do not receive any equity in the business and simply provide the capital that is repaid. The aim of crowdsourcing is to remove the barriers to launching that most small businesses tend to go through at the seed capital stage which in many instances is not attractive for angel investors or private equity or venture capitalists. Kickstarter(https://www.kickstarter.com) is a fantastic example of this revolution, the platform funds creative people who wish to launch their own businesses. I have however just come across a site that calls itself a crowdfunding platform but on further scrutiny looks to me like  another angel investor/ venture capital platform. The crowdsourcing label has been used to get traffic to the site but I was really disappointed with it: small businesses have to pay 100 dollars to submit their proposals, the site is stuffy and stiff and exactly what I would expect from a private equity house, they are Microvest ventures (http://www.microventures.com/) and I am sure what they are doing os noble in some way but this does not fit the crowdsourcing tag at all!

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