

Ask PG: How will crowd-funding affect YC and the VC industry? - ppod1991

In your latest post, you talked about trends in venture capital, but didn&#x27;t bring up recent trends in crowdfunding. How do you think crowdfunding will change the game for both YC and the venture capital industry?
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pg
It already affects us a bit, because some of the companies we fund have raised
money through these services. But I have no idea what long term effect it
might have.

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malandrew
What advice do you give companies that go that route so that nothing they do
in earlier rounds ends up as a black mark on the schedule of exceptions?

How are companies that crowdfunded in earlier rounds being received by
traditional VCs? What do they check for before making any investments in a
startup that took non-traditional finance in early rounds?

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shloime
It seems to me that the crowdfunding trend puts allot more power in the hands
of entrepreneurs who now have access to outside funds and a product runway.
The true test will be when (if) the Jobs Act ever goes into effect. That
should have far greater ramifications than reward based crowdfunding.

