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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. Are traditional investors really that great when you can leverage your social networks for cash? He quit his job to fulfill his orders and imagined starting a great new business from the seed money.

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The Series A crunch is hitting now. Have we even noticed?

pandodaily.com

The numbers I’ve heard from most everyone is that only about 20 percent of companies that have gotten a seed round in the last year will be able to raise a Series A. I recently went to a networking event for one of the seed funds that invested in PandoDaily, and I’ve never seen such worry on the faces of the entrepreneurs.