If I choose crowdfunding will it put off future venture capitalists?

Crowdfunding platforms are an exciting addition to the startup scene and are playing an ever-expanding role in the fundraising mix. The days of viewing them as fringe or marginal are long gone; Kickstarter, alone, since its 2009 launch, has seen 5.4m people pledge $918m (£563m) to fund 53,000 creative projects.

Today, few would dispute that crowdfunding has become an accepted and effective way for entrepreneurs to road-test ideas, raise their profile and get useful customer feedback in the pre-launch stage.

They also provide useful insights for VCs into how your product idea is being received by the market. It’s worth stressing that many successful campaigns on Kickstarter, Indiegogo and similar platforms have gone on to raise venture rounds.

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