VLP Founding Partner David Goldenberg Quoted in San Jose Mercury News Article “Startups Turn to Crowdfunding”
VLP Founding Partner David Goldenberg was recently quoted in an article for The San Jose Mercury News titled “Startups Turn to Crowdfunding.” The article reported that crowdfunding, the practice of funding a project or venture by raising many small amounts of money from a large number of people, is becoming more popular for early-stage startups that need capital to get off the ground.
The article noted that crowdfunding may be an especially attractive option in the current market, with venture funding harder to come by. But multimillion-dollar success stories remain rare, and it isn’t expected to replace traditional venture capital and angel funding anytime soon.
Mr. Goldenberg, who frequently counsels clients in fundraising matters, noted, “If you’re going for crowdfunding, most of the time it’s because you’ve struck out with those more traditional sources.”
The article also noted that it’s more difficult to raise a large amount of cash on a crowdfunding platform, and while some projects using crowdfunding have been hugely successful, many fail to reach their funding goal.
Click here to view the full article.Share