Kickstarter has opened up development in areas and populations across the country that have not had access to capital before, according to a new study.
We’re used to hearing about technology start-ups getting cash from bankers and venture capitalists, but from Kickstarter?
A new study from the University of California, Berkeley said the crowdfunding site not only raises capital funds, but actually goes into geographic areas and into populations that traditional companies don’t.
Study author Lee Fleming said while venture capital funding is concentrated in places like Silicon Valley and New York, crowdfunding is more distributed across the country. As crowdfunding boosts start-ups, venture capital firms follow.
Phoenix and Tucson are two cities that stand out in Fleming’s research. He said investment in technology start-ups primarily drives the growth.
