The Hunt for Capital

But the story did not stop there, since GM’s new self-driving division raised another $1.15 billion in investments in May 2019 at a valuation of then $19 billion.

Today, venture capital (VC) is not the only answer for start-ups seeking initial funding, Pitch Book analyst Kyle Stanford thinks. “While VC is billed as a gateway to growth, it is not a fit for all companies, business models, or founder personalities. It begins an implicit, and sometimes very explicit, need for the company to produce hyper-growth-sized metrics to raise further capital and eventually exit at a huge valuation,” she writes in her recently published report “Alternative Sources of Financing for Startups.”

Equity crowdfunding offers amazing potential for startups and growing companies, but it can also be a very steep learning curve – for entrepreneurs and investors alike. The ability to set their own offer terms, promote their company to the public, and let the crowd decide if they are worthy of being funded, is a game changer in the early-stage funding sector. Besides providing financial resources, start-ups gain early adopters and loyal advocates through broad public exposure. A successful funding campaign can trigger a powerful snowball effect, putting you in touch with major investors you might not have reached otherwise. Whether they read about your new product on a popular blog or hear about your innovative campaign from a friend, a successful crowdfunding campaign is a great way to spark a new investor interest.

At Aescuvest, We Aim to Merge the Best of Crowdfunding and VC

It could mean that start-ups and growing companies can bypass banks and VCs. At Aescuvest, we believe that every financial source can have its own benefits. That is why we have created our own crowdfunding route that is tailored like a VC investment in order to keep the door open for all kinds of investors – before, during, and after the actual digital venture offering, as we like to call it.