Funding Your Project Through Crowdfunding. What is Crowdfunding?
Crowdfunding and The future of Venture Capital by Nick Tommarello at Startup Istanbul 2015
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Nick Tommarello Founder & CEO Wefunder
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Transcript of Crowdfunding and The future of Venture Capital by Nick Tommarello at Startup Istanbul 2015
Nick TommarelloFounder & CEOWefunder
Nick TommarelloCEO & Founder, Wefunder
Crowdfunding & The Future of Venture Capital
We help everyone around the world invest as little as $1000 in curated US startups
About Wefunder
2015 Stats
• 45,000+ users
• 30% of our investors are international
• Invested $13M+
• Funded over 110 startups
• Biggest Win so far: Zenefits Our invested: $10M valuation in 2013 Current Valuation: $4.5 billion (300x return to date)
Current State of the Industry
How it Works
• AngelList, FundersCLub, & Wefunder are the main players
• These three took away all downsides – no adverse selection
• Acts like a big angel investor
• Typically $200k-$500k
• Tops off a round at the end
Not Yet Very Innovative
PROS:• The wealthy outside of Silicon Valley can invest in startups with a potential to be $1b+
• $1000 minimum instead of $100,000+
CONS:• 99 investor limit• Can’t advertise (usually)• An Accredited Investor
The Future
Wefunder was founded to help everyone invest as little as $100
Lobbying the Government
Wow. It Worked.
Still waiting…
• Unaccredited Can Invest (with exceptions) • Small businesses • Very very early stage, <$100k • A late-stage startup crowdfunds just prior to IPO
• Accredited Market: • The 99 Limit Goes Away • Platforms start leading Series A
2016 Predictions
Public Companies
“Very Risky… So Be Wealthy”
Private Companies
“Enron Must Never Happen Again”
Huge Regulatory Burden
?
Public Companies
Private Companies
“Enron Must Never Happen Again”
Huge Regulatory Burden
Public/Private Hybrid“Expect lots of risk… so invest < 10% of your
income.
“Very Risky… So Be Wealthy”
How is Venture Capital impacted?
What happens when crowdfunding delivers $5+ Million in 24 hours?
How can more Moonshots be funded?
What happens when we “train” more founders?
What happens when we “train” more investors?
What if 30 world-class Artificial Intelligence experts can create a distributed VC firm… in 1 day.
We’re all going to be VC’s
StartupIstanbulThe Leading Startup Event In Eurasia
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