Let's go ask Mort over there in the paddock on the white horse.
From TechCrunch:
Crowdfunding limits are poised to change next week, but most VCs aren’t paying attention — yet
Passion Capital, the early-stage venture firm in London, told TechCrunch earlier this week that — in an apparent first for a European fund — it plans to crowdfund the final stage of its third and latest vehicle. Specifically, it’s carving out around half a million dollars for anyone who wants to invest in the vehicle, as long as they are a high net worth individual.
Firm founder Eileen Burbidge says the outfit was inspired by developments it has seen here in the U.S., from AngelList’s rolling fund program, to an imminent change in a crowdfunding regulation, Reg CF, that on Monday is set to bump up the maximum amount that can be raised through a crowdfunding campaign from $1.07 million in any twelve-month period to $5 million — a nearly five-fold increase.
The move is interesting, especially coming on the heels of some other recent initiatives to democratize venture capital. But if crowdfunding a piece of traditional venture funds does become a bigger trend, it’s not going to happen overnight. We talked with fund formation attorneys and administrators this week, and they’d barely registered that the crowdfunding limit is about to quintuple because they aren’t being asked about it.
Why not? One fund formation attorney said he doesn’t think it will become a viable fundraising path — unless other paths aren’t available — because of the benefits of having investors who can provide contacts and expertise to portfolio companies. Think of the many funds that count CTOs as limited partners, for example; VCs can learn a lot about the kinds of technology they’re looking to implement by bringing them into the fold.
There are other pragmatic concerns, too. VCs like to personally know their limited partners because they call down capital on a deal-by-deal basis and want to be sure their investors will come through with the money....
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