What General Electric’s Big Bet On Crowdfunding Looks Like
Wednesday, November 13, 2013
If you’re closely watching the developing situation around crowdfunding, one of the themes you start to see is that expertise matters – and therefore the whole crusade to provide a platform for funding but little else may need to be reevaluated. Because investors that only provide capital and not industry knowledge and contacts are shortchanging the entrepreneur.
You’ve heard the old saying, “If money is your only hope for success you will never have it.” This is true in the venture capital world as well. I mean, I wish the crowdfunding industry well, but it’s not enough for an entrepreneur to have capital to compete, they need experienced partners with deep expertise, resources and contacts too.
For some reason that adage reminds me of the crowdfunding partnership announced by General Electric (GE) last week. Because right now, with crowdfunding sites proliferating, corporate involvement has been absent. Yet, while every other company is watching from the sidelines, GE has decided to bring good capital to life by reimagining how it works in the capital markets. And it’s a game changer.