Patronage has its place in crowdfunding. Kickstarter, having raised over $315m to date for new projects, ideas and movements, exemplifies this. But when for-profit motivations take the wheel – as they will in equity crowdfunding – patronage must take a back seat. Startups are not helpless, underserved entities deserving of our charity. In fact, charity will only hurt them. They need disciplined capital; capital that expects a return. Capital that believes in them, supports them, but will also hold them accountable in their search for a job-generating, value-creating business model.
Link to full article: http://www.thecrowdcafe.com/equity-crowdfunding-system-of-value-creation/