AngelsDen – the hybrid Equity Crowdfunder – creates a third phase for business angels

AngelsDen announced this week that it is now offering equity crowdfunding to aspiring entrepreneurs along side its semi-traditional pitch and meet angel networks.

In addition, AngelsDen has also launched Peer to Peer lending as a third method of raising finance.

We now need to rethink of AngelsDen simply a source of funding for early stage and growth businesses – and as equity crowdfunding as just one tool, alongside more traditional angel network methods and also peer to peer lending.

So, the early stage funding market has shown its third major shift.

Initially, business angels organised themselves into semi-private, regional business angel clubs. This was followed by the early innovators of open global business angel groups and equity crowdfunders.

Now, in Oct 2013, we have reached a third stage where early stage and growth business funding brands – such as AngelsDen – are offering a range of funding tools.

In hindsight, this seems perfectly natural, as a startup will want different forms of finance at different stages of its life (or at least pre-IPO life) and hence, the sourcing companies are smartly aligning themselves alongside their customers (the businesses) to help them through their journey.

Will we start to think of AngelsDen and Crowdcube etc… as banks for early stage and growth businesses? Well, we might not like the term, but yes, in essence young startups and growth companies are likely to form a successful funding partnership with a funding ‘brand’ and come back for different finance tools as it grows.

That looks like a great solution for the entrepreneurs, the business angels and the funding sourcing companies too.

Welcome to the future.



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