Crowdfunding is Great, But is it Right For Startups?
1–10 of 23 posts
Re: Crowdfunding is Great, But is it Right For Startups?
#2Well written article for explaining to someone new the "risks"/rewards of passing crowdfunding legislation.
Re: Crowdfunding is Great, But is it Right For Startups?
#3It seems like of course you should be able to do this, but the article brings up some valid concerns. Still, I think it's a bit condescending to say to people we're just protecting you when most of us understand the risks involved with a startup. Most aren't Facebook. Most are the company you never heard of because it failed after 6 months.
Re: Crowdfunding is Great, But is it Right For Startups?
#4It seems like of course you should be able to do this, but the article brings up some valid concerns. Still, I think it's a bit condescending to say to people we're just protecting you when most of us understand the risks involved with a startup. Most aren't Facebook. Most are the company you never heard of because it failed after 6 months.
When you do the math on $10 in Facebook stock at founding vs. what it's worth now, you find out that you could have invested in 20,000 startups and even if every single one of them failed except for Facebook, you would have lost NO money. The risk is non-existent. It's a fear tactic.
Re: Crowdfunding is Great, But is it Right For Startups?
#5It seems like of course you should be able to do this, but the article brings up some valid concerns. Still, I think it's a bit condescending to say to people we're just protecting you when most of us understand the risks involved with a startup. Most aren't Facebook. Most are the company you never heard of because it failed after 6 months.
When you do the math on $10 in Facebook stock at founding vs. what it's worth now, you find out that you could have invested in 20,000 startups and even if every single one of them failed except for Facebook, you would have lost NO money. The risk is non-existent. It's a fear tactic.
True, but the chance of having picked Facebook is about 0, and there is no second Facebook, which makes your math void.
Re: Crowdfunding is Great, But is it Right For Startups?
#6Sorry, but I'm confused. Historically, wasn't this the whole point of going public?
Re: Crowdfunding is Great, But is it Right For Startups?
#7Earlier quoted context omitted.
When you do the math on $10 in Facebook stock at founding vs. what it's worth now, you find out that you could have invested in 20,000 startups and even if every single one of them failed except for Facebook, you would have lost NO money. The risk is non-existent. It's a fear tactic.
True, but the chance of having picked Facebook is about 0, and there is no second Facebook, which makes your math void.
How is there not a second Facebook? Isn't Facebook the second Google the second Microsoft, etc. ?
Re: Crowdfunding is Great, But is it Right For Startups?
#8Sorry, but I'm confused. Historically, wasn't this the whole point of going public?
Going public is incredibly expensive and is only worth it if you're needing to raise $50million+. A small company therefore doesn't have access to the public markets nor do the public markets have access to the small companies that make this country strong.
Re: Crowdfunding is Great, But is it Right For Startups?
#9Earlier quoted context omitted.
When you do the math on $10 in Facebook stock at founding vs. what it's worth now, you find out that you could have invested in 20,000 startups and even if every single one of them failed except for Facebook, you would have lost NO money. The risk is non-existent. It's a fear tactic.
True, but the chance of having picked Facebook is about 0, and there is no second Facebook, which makes your math void.
Actually that's flat out wrong.
2011- 1,100 seeded startups. 2004- Year Facebook formed. 2012-Facebook's valuation: est. $100 billion.
If you say that 1,100 companies are seeded a year (which is not true, only 885 in 2009, 850 in 2008) and multiply that by 8 years (2004-2012), you get 8,800 startups to invest in. So EVEN IF 8,799 of those companies failed, if you invested in every single one you'ld have a 250% return in 8 years during a down market. That's amazing.
But those 8,799 didn't fail. If 1% succeeded you'ld have 88 companies still left in your portfolio IN ADDITION to your Facebook stock.
This is why we need crowdfunding so badly. Without it, wealth is pumped to people who have so much wealth that they can't spend it all. With crowdfunding, capitalism works to spread that money around to people who can spend all of it. We're talking an explosion of wealth in this country and it wasn't from some stupid government debt plan.
Re: Crowdfunding is Great, But is it Right For Startups?
#10Earlier quoted context omitted.
True, but the chance of having picked Facebook is about 0, and there is no second Facebook, which makes your math void.
Actually that's flat out wrong. 2011- 1,100 seeded startups. 2004- Year Facebook formed. 2012-Facebook's valuation: est. $100 billion. If you say that 1,100 companies are seeded a year (which is not true, only 885 in 2009, 850 in 2008) and multiply that by 8 years (2004-2012), you get 8,800 startups to invest in. So EVEN IF 8,799 of those companies failed, if you invested in every single one you'ld have a 250% return…
Seed numbers: http://techcrunch.com/2011/11/09/crunchcrunch/