If we hope to build a thriving economy that supports a diversity of business models and entrepreneurs, we should work to expand inclusive non-VC business funding models .... cont'd
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Although we are seeing VC buy-ins coming down in size of dollars invested in earlier stage ventures (partly credited to Crowdfund offerings eating some of their lunch) that doesn’t mean their goal isn’t the same—pure profit motive, by driving metrics up in value before they sell (the story) to the next buyer. Or hyping it up to unicorn status hoping an IPO will pay for all the gambling. Either way, ultimately extractive.
And though I’m happy to see more VC’s claim they’re in it for Impact, we’ll see how those go…
…and if you’re one of the new impact firms, feel free to reach out and I’ll show you a true impact plan that’s worked for a thousand years. (-:
Yes, Scott - returns always trump impact in the VC model.
Preach! You're absolutely right. There are VCs who are trying to do it right, but the data shows the industry is making no progress. Crowdfunding represents a whole new game that is fundamentally more fair.
Great Article, Jenny. I couldn't agree more, which is why we just launched https://www.riseupcrowdfunding.com in collaboration with The Coca-Cola Company to be an inclusive non-VC place to raise capital.