Chief Space Economist George Pullen ran into to retired Deputy CTO of NASA, Jim Adams, at the Global Aerospace Summit in DC yesterday and it looks like the perfect photo to explain how GPs crowdfund from LPs. 🤔
3 Key Points about GP crowdfunding:
1️⃣ General Partners (GPs) also crowdfund from VCs, Family Offices, Hedge Funds, Private Equity and Institutions in addition to LPs. They just call it "syndication". Syndication is just crowdfunding where Customers are excluded from investing in the products that they purchase.
2️⃣ Customers have more money than VCs and Fund Managers. Fund Managers just aggregate Customer's money. Hence why many startups opt to skip the middlemen that are VCs and crowdfund directly from Customers, which also include VCs, Fund Mangers and the humans who constitute Family Offices.
3️⃣ A 🦈 Shark's ultimate goal is to crowdfund its exist. The final phase of #crowdfunding is called #GoingPublic. When a startup "goes public" or IPOs (Initial Public Offering) it is infact crowdfunding the exit (cashing out) of the initial investors (historically Sharks, VCs, PE, Hedge Funds, Institutions, etc...) to the public. There is no larger crowdfunding platform than the NY Stock Exchange. Which has $B dollar Initial Public Offerings (crowdfunding from everyone) all the time.
🚀 If you're in the Space Economy you care about this because a) Uncle Sam invest the most money annually in Space businesses b) crowdfunding gets statistically easier after your startup has recieved its Phase II SBIR/STTR.
Got questions about raising capital in The Space Economy? DM George or Samson Williams or visit Going Public to learn how businesses use RegA+ crowdfunding to raise up to $75M annually from VCs, Institutions and customers alike.
#VCs #GPs #LPS #RaisingMoney