Many believe that crowdfunding will become the most popular financing strategy, instead of the traditional VC funding. A recent survey says no.
Much of the startup financing chatter over the last few months has revolved around the passage of the JOBS Act, and its impact on startup financing in the US. With the passage of the JOBS Act came crowdfunding, an innovative way to raise capital for businesses. Many believe that crowdfunding will become the most popular financing strategy—a movement away from the traditional venture capital firms. However, a recent survey may change this belief.
A recent update to a 2010 survey conducted by law firm Dorsey & Whitney polled more than 300 startup executives about how they plan to fund their business. Here are some of the reasons why startup CEOs may continue to seek traditional venture capital financing.
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