Crowdfunding is creating new opportunities for businesses and individuals, including venture capital firms as they take advantage of investment opportunities in companies in the space. In total, VC investors have poured over $248 million into 49 crowdfunding companies, according to the PitchBook Platform. The majority of that capital (61%) was invested last year, buoyed by a massive $100 million financing for CommonBond, which connects student borrowers and individual and institutional investors to save students money on their loans and allow investors to earn a financial return. The CommonBond deal, however, was a rarity among the year's 35 completed financings; the rest were much smaller in size, resulting in a median deal size of $1 million for 2013, right on par with 2012's median.
2014 is off to a strong start in terms of capital invested in crowdfunding companies, thanks to Indiegogo's $40 million financing, covered in today's newsletter. But with so much time left in the year, we'll have to see whether 2014 will be able to top 2013's record deal count and total capital invested numbers.
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