Pebble Raises $3 Million from 21,000 People in 5 Days. Is Crowdfunding the New Venture Capitalism?

Last week, we wrote that Pebble—a smartwatch developed by Canadian Entrepreneur Eric Migicovsky—raised $1 million from 7,300 backers in just 24 hours on Kickstarter. Then we went on to report that, by the end of day two, that number had doubled to $2 million from 14,400 backers. This, despite the campaign's original goal of only $100,000, and the fact that the campaign still doesn't end for over a month.

While the pledging has slowed somewhat, Pebble has now cracked the next major milestone: $3 million. It took only five days to reach this number, 5,000% of the original goal.

More than 22,000 people have pledged money to this company. Which begs a question: is crowdfunding the new venture capitalism? Would a VC have given this unproven startup $3 million? Even if so, the VC would have commanded a massive percentage of the equity.

Safe and reliable crowdfunding platforms such as Kickstarter provide a revolutionary new way for entrepreneurs to raise money in a low-risk environment that doesn't dilute company equity—creating win-win proposition that should certainly scare professional investors, who are suddenly looking rather antiquated.

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