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Venture Capital vs Crowdfunding
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The primary difference between venture capital and crowdfunding is simply equity. Venture capitalists acquire equity in the startup. Crowdfunders do not. Instead, crowdfunding is much more like a high-risk pre-order platform, where there's a reasonable probability that the startup may fail to deliver the pre-order.
Read more: http://www.businessdictionary.com/definition/venture-capital.html
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