It’s no secret that there has always been a disconnect between the Venture Capital (VC) industry and the Startups that they fund. VCs are the embodiment of old school funding and their investments have, until recently, been the judge, jury, and executioner for countless innovation and disruption across almost every type of industry. When times are good, the power that the industry wields barely gets mentioned – let alone challenged.
But the coronavirus crisis is changing things up – and in a big way. On-going restrictions on travel and networking events – as well as the unprecedented disruption to VCs’ current portfolio companies and a new found conservatism among many of these investors, are severely curtailing the traditional VC model. As VC funding dries up Equity Crowdfunding (EC) is ideally positioned to nurture the abandoned sprouts.