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Why crowdfunding fits in with Angels, VCs

Ryan Caldbeck has plenty of reason to think crowdfunding can play well with the existing funding ecosystem. After all, he runs CircleUp, an equity crowdfunding platform focused on consumer and retail companies. But his position at CircleUp, and previous 10 years in private equity, give him pretty good insight on just how crowdfunding will work with angels, VCs and private equity firms. He shares that insight in a post on Forbes and finds, perhaps not too surprisingly, that crowdfunders and existing players will actually play well together. For angel investors, he sees crowdfunding as a boon because it will produce deal flow more easily than the current system. Here’s Caldbeck: We have found that angels love well curated equity-crowdfunding sites. Why? The answer is deal flow. Sure, there are a handful of angels in Silicon Valley (think Ron Conway) who see great tech deals before others and who have established such a prominent brand that companies come calling on them. For the vast majority of angels, however, and especially those outside the friendly confines of the Valley, it is both difficult and time consuming to generate quality deal flow. This is where great equity crowdfunding sites come in: a well […]

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