Since the passing of the JOBS Act, much has been written about crowdfunding and how it will affect the investment landscape from this point forward. The question many are asking is: is crowdfunding a complement to venture activity, or will it put pressure on a VC industry that has been struggling to perform over the past decade?

I don’t think the answer is clear one way or the other but somewhere in between.

Pro: Crowdfunding may make it easier for start-ups that would otherwise not have access to funding to get off the ground. Crowdfunding will likely prove most useful for companies that can be successfully launched with less money than the dollar thresholds of most VCs. Some areas within the internet and mobile industries, for example, have a history of doing more with less, and may see crowdfunding as an attractive option. The availability and low cost of cloud computing has made it easier for an internet or mobile development-focused company to get off the ground as they no longer need to spend precious capital on hardware. For companies that will need more than the $1 million per year that can be legally raised through crowdfunding, however, traditional venture capital will remain the better option.

To read the full, original article click on this link: Crowdfunding and Venture Capital: Friends or Foes? -peHUB