Dealroom founder Yoram Wijngaarde wondered whether it makes sense for retail investors to back equity crowdfunding campaigns, in terms of potential returns.
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  • Good post, but as a crowdfunding platform representative, I would emphasise the fact that there are only one or two exits so far in the industry. So we do not have enough data yet. At Invesdor.com we believe that CF just brings a new and easier process of investing in growth companies, which opens the investment possibility for wider audiences. But the growth companies are still growth companies and the investors are investors, so the same investment-related risks and return possibilities exist, which were previously handled by Angels and VCs. So I believe that Angel and VC industry returns will give some guidance about the future of CF returns.

    • Yoram Wijngaarde

      Not enough exits (yet) is exactly the problem identified here. Imagine what would happen if a VC fund used this reasoning “we do not have enough data points (exits) to make a conclusion”. But agreed, we need to give it time to see the results.