Generally it is assumed that the options for startups and businesses to pursue  financing are as follows:  

• Option A - VCs
• Option B - Angels
• Option C - Broker Dealers / PE / Hedge Funds
• Option D - Crowdfunding 

In truth the options are: 

• Option A - Crowdfunding / Angels / VCs / BDs / PE/ Hedge Funds
• Option B - Bootstrap then crowdfund

The reason that Crowdfunding is every startup’s first option is simple: 

• Crowdfunding enables Founders to set investment terms
• With these universal crowdfunding terms, Founders can solicit investments from investors at all levels (accredited, non-accredited, institutional)
• Currently, Founders and Entrepreneurs exhaust themselves pitching to ONLY 4% of the accredited investor population; which is well known to have a 99% failure rate.
• Less than 1% of Startups receive VC funding.
• Crowdfunding enables Founders and Entrepreneurs to take the same pitch deck, due diligence, financials and disclosures and literally cast a wider net