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.