Back in the gold rush days, the smart people were not the ones heading for the hills to dig holes. The smart people were selling picks and shovels. Crowdfunding is like that. With everyone and his brother now founding a startup, the smartest entrepreneurial play could be to set up a crowdfunding site to provide those founders with their essential tool: money.
The JOBS Act changed the game for crowdfunding. It makes it legal for crowdfunding sites to give actual equity to investors – not just thank-you gifts like T-shirts and coffee mugs – and it’s expected to draw a vast amount of capital to crowdfunding. Some are predicting an influx of as much as $300 billion, 10 times the amount now deployed in the venture sector.
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