Venture capital’s tight grip on early stage deals is a desirable target for disruption as no other investment category can turn so little money (and patience) into even more money, at least for the savvy and the lucky few that can generate 10X returns consistently.
Crowdfunding is often claimed to be a potential VC disruptor but successful examples are hard to find. April Rudin, founder of high net worth investment advisory Rudin Group, writes it is very attractive to be able to participate in the kind of deal flow. It is normally not easy to access and choosing to invest company by company is not possible via a blind pool venture fund or through a fund of fund intermediary.
She cites the model used by OurCrowd, founded by Jonathan Medved, a well-known venture industry professional, as one way things might go in that direction. OurCrowd is targeted at accredited investors and offers them a pool of vetted companies – it also pre-negotiates terms sheets and takes stakes in the companies on its platform, according to its website.