PointofLaw.com
 Subscribe Subscribe   Find us on Twitter Follow POL on Twitter  
   
 
   

 

 

How Crowdfunding is Disrupting Capital Markets

| No Comments


Ryan Calbeck, the founder of CircleUp, describes in Forbes how crowdfunding is disrupting capital markets.

As he describes it, the market for start-up financing is roughly $15 billion per year and has not changed in decades. The VCs and angels who make investments in early stage companies have an inefficient process for locating and assessing potential investments.

Caldbeck writes, "their approach to finding opportunities is not meaningfully different in 2013 than it was in 1953. It is an incredibly dispersed, difficult and inefficient market in which buyers (investors) and sellers (companies) have the best chance of connecting if they both attend long angel meetings just as they would have pre-Internet. At least they might get free shrimp along the way."

The prospect for crowdfunding is to create new markets for early-stage capital that will improve efficiencies in the process, generating economic benefits for both investors and entrepreneurs.

Leave a comment

Once submitted, the comment will first be reviewed by our editors and is not guaranteed to be published. Point of Law editors reserve the right to edit, delete, move, or mark as spam any and all comments. They also have the right to block access to any one or group from commenting or from the entire blog. A comment which does not add to the conversation, runs of on an inappropriate tangent, or kills the conversation may be edited, moved, or deleted.

The views and opinions of those providing comments are those of the author of the comment alone, and even if allowed onto the site do not reflect the opinions of Point of Law bloggers or the Manhattan Institute for Policy Research or any employee thereof. Comments submitted to Point of Law are the sole responsibility of their authors, and the author will take full responsibility for the comment, including any asserted liability for defamation or any other cause of action, and neither the Manhattan Institute nor its insurance carriers will assume responsibility for the comment merely because the Institute has provided the forum for its posting.

Related Entries:

 

 


Isaac Gorodetski
Project Manager,
Center for Legal Policy at the
Manhattan Institute
igorodetski@manhattan-institute.org

Katherine Lazarski
Press Officer,
Manhattan Institute
klazarski@manhattan-institute.org

 

Published by the Manhattan Institute

The Manhattan Insitute's Center for Legal Policy.