It’s a win and a loss at the same time when companies take investments. Yes, they get money to fund their projects, but they also lose a measure of control and revenue as a result. Here’s the story of one tech company that crowdsourced passed the VCs.
Earlier this year, our Y Combinator startup SendHub tried to raise its Series A. Despite monthly revenue in the mid-five figures and a 25 percent monthly growth rate, we were shunned by over 50 VCs. So we turned to crowdfunding platforms to raise a successful round — an option that was simply unavailable even a year ago. Here’s how it worked for us.