Crowds have already demonstrated their value as a source of capital for start-ups. Support via donations or pre-purchasing on sites like Kickstarter has set high expectations for equity-based crowd funding in the United States.
Discussions often focus on how crowds can and will compare to traditional institutions like venture funds or angels. One can argue simultaneously for the madness and wisdom of crowds, so it's not yet clear how crowds will compare at picking the best startups. However, there are some areas in which crowds might outperform existing institutions. And for these contributions, crowds deserve serious consideration for startups and their stakeholders.
To read the full, original article click on this link: Shaun Abrahamson: Crowdfunding Is More Than a New Source of Capital
