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Why Kickstarter and crowdfunding can’t replace traditional investors

The Next Web

Editor’s note: This is a guest post by Aaron Pitman , an angel investor and founder and partner of RA Domain Capital. A Boston Globe article exploring the downside of crowdfunding new businesses noted the example of a man who raised $87,000 on Kickstarter in 2010 for a lock-picking set. Investors provide guidance.

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How to Fund a Startup

www.paulgraham.com

If your friends or family happen to be rich, the line blurs betweenthem and angel investors. At Viaweb we got our first $10,000 ofseed money from our friend Julian, but he was sufficiently richthat its hard to say whether he should be classified as a friendor angel. Angel Investors Angels are individual rich people.

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How to deal with the Series A crunch

Version One Ventures

As I’m assuming this is a common question heard in huddled discussions in offices from San Francisco to Boston, here’s my advice on how to navigate today’s financing waters: If you haven’t raised your seed round yet… If you’re looking to raise your seed round, aim for more money than you had originally planned.

Burn Rate 140