Crowdfunding has the potential to ignite impact investing.
How? Well, for starters crowdfunding is inherently social. Founders of companies and potential investors can talk openly on the web and exchange feedback, concerns, and ideas.
More importantly, when it comes to attracting investors, crowdfunding enables founders to bring to bear what’s called “social capital.” Social capital is essentially all the real and potential value stored in the relationships of the founders and the company.