Industry Insights

Crowdfunding - dumb or smart money?

We read a couple of interesting articles recently asking the question whether crowdfunding was dumb or smart money?

The term “smart money” implies that the investment capital comes with a certain degree of market knowledge, business network or credibility, in contrast to "dumb money" where the investment capital is just a lump of cash to be used as investment capital.

So, the question is, is crowdfunding dumb or smart money?

Positive outputs...

As well as raising capital, the use of crowdfunding has other real positive outputs such as raising the awareness of your enterprise, building new relationships, increasing profile and publicity, all of which are extremely valuable in the early stages of your business.

Well our verdict is this is the SMART money! Why? For a number of reasons such as the wisdom of the crowd: there’ll be a lot of people who can offer advice and knowledge about the market.

These are valuable supporters who will champion your company. They may act as brand ambassadors and finally, potential customers...a good result for all.

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