For the past couple of decades, venture capitalists have had the upper hand. They’ve had the funding and most of the power in the startup ecosystem.
“A possible model could be a scenario in which a VC spots an interesting deal in the crowfunding market and offers to sponsor the deal with one-tenth of a $1 million round, he said, potentially making it easier for the startup to raise the remaining $900,000. The hypothetical VC could also join the board and get added equity for the expertise.”
See on gigaom.com