The rise of crowdfunding has created a misconception that Kickstarter is disintermediating venture capital. Suddenly VCs are useless and irrelevant in their roles as the gatekeepers of good ideas.
Now founders don’t have to desperately pitch themselves to the sweater vests — they can go straight to the people. The Pebble watch guys didn’t need VCs to believe in their idea. In fact, they were rejected by investors before raising millions of dollars from thousands on supporters online.
The Web has leveled the playing field on so many things; it’s about time that it democratized the flow of capital to tech startups. Who needs seed investors? The good deals will now go straight to the Web. Or so the thinking went.
To read the original article: Crowdfunding Isn’t Killing Seed Funding — It’s Helping It | PandoDaily
