Entrepreneur

The new face of venture capital: The rise of crowdfunding

(Editor’s note: Kevin Lawton is a serial entrepreneur. This post originally appeared on his blog.)

The venture capital world is evolving quickly — so quickly, in fact, that it can be hard to keep up with the changes.

Conventional VC networks and outlier identification produce poor returns. (This is due, in part, to financiers’ Pavlovian reaction to entrepreneurs with a diploma from a top-tier school.) As we move forward, crowdsourcing and crowdfunding will be used to augment or replace traditional methods and create the high-return VC of the future.

While it’s still early in the lifespan of this investing model, the roadmap for where it needs to go is a clear one.

This presentation (the first part of which can be found here) is meant to assist both Limited Partners and entrepreneurs alike and has been wrought from a life in startups and studying the business of innovation.


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  1. [...] The new face of venture capital: The rise of crowdfunding | Vent Conventional VC networks and outlier identification produce poor returns. (This is due, in part, to financiers’ Pavlovian reaction to entrepreneurs with a diploma from a top-tier school.) As we move forward, crowdsourcing and crowdfunding will be used to augment or replace traditional methods and create the high-return VC of the future. While it’s still early in the lifespan of this investing model, the roadmap for where it needs to go is a clear one. The venture capital world is evolving quickly — so quickly, in fact, that it can be hard to keep up with the changes. [...]

  2. [...] Conventional VC networks and outlier identification produce poor returns. (This is due, in part, to financiers’ Pavlovian reaction to entrepreneurs with a diploma from a top-tier school.) As we move forward, crowdsourcing and crowdfunding will be used to augment or replace traditional methods and create the high-return VC of the future. The new face of venture capital: The rise of crowdfunding | Vent [...]