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The company has raised £800,000 in angel finance to grow the service.
We see a major gap between the needs of most social enterprises (requiring early stage angel finance) and where most impact investors sit along the conveyor belt of capital (wishing to deploy private equity/debt).
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Seventy percent of their companies eventually get venture capital or "angel" financing.
By the end of the year, the restaurant had attracted about $2 million in angel financing, according to Mr. Kostman.
He credits Mr. Dilts, who arranged angel financing, with "advice that was absolutely key to my success in raising capital".
New Zealand has long had much less venture capital and angel financing, even for its size, and crowdfunding helps make up for that shortfall.
Jurisdictions with low levels of venture capital and angel financing (e.g., Italy and Spain) may wish to ignore inclusivity and just focus on creating an efficient system for crowdfunding.
"I knew when we got our early angel financing in March '99 that we were probably too late," Mr. Mackie said.
Jurisdictions that already have abundant venture capital and angel financing (e.g., Israel and the United States) can afford to employ crowdfunding as a way to promote entrepreneurial participation across a broad segment of society.
The United States has long had the largest and most mature system of venture capital and angel financing in the world, and could afford to view crowdfunding as a complementary system focused on inclusive opportunities for entrepreneurs.
To my Wall Street eyes, Kickstarter still looks like thinly disguised angel financing — the earliest stage, or "friends and family," capital raise — regardless of what the fine print says.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com