Democratizing VC: Is Now the Time for Crowdfunding 2.0?

 

According to PitchBook, “US VC fundraising remained subdued as the liquidity drought continued to weigh on LP sentiment.” Only $45.7 billion was raised by 376 funds in Q3 2025. This has been the trend since the pandemic boom, where $224.6 billion was raised by 1.776 funds in 2022. Venture is a cyclical business, although every business cycle is different, historical analysis suggests that the rhythm of cyclical fluctuations in the economy tends to follow similar pattern. Last time we saw a dip in venture fund raising activity was in 2013. 

The 2008 Financial Meltdown led to a liquidity crises for Entrepreneurs, Companies, LPs, VCs, and everyone. Fewer IPOs in the market means no exits for VCs, no returns for LPs, and as a result venture funds were on a decline. No new funds means less startup funding, low employment, and slow economic growth. Thus on April 5, 2012, President Obama signed, The Jumpstart Our Business Startups Act (the JOBS Act), which enables Crowdfunding for all Americans. 

Watch to learn more about the JOBS Act? Why crowdfund NIN Ventures?

However, is the dip different this time around? There is a record $311.2 billion of dry power in 2025. One-third of today’s dry powder stems from funds raised during the pandemic-era boom, and GPs have continued to reserve more capital for follow-ons and portfolio support. In 2024, 30 firms raised 75% of all capital raised by VC funds in the US with majority of them investing in AI. While AI-driven enthusiasm has lifted sentiment, it has yet to accelerate deployment. Also, what about other non-AI startups? Without a rebound in distributions, fundraising conditions are likely to remain challenging for most managers into 2026. So what does this tell us about the future of startup funding? Is it time to give another look at Crowdfunding?

The best time to Crowdfund was 2013-2015.

The second best time is NOW!

References:

PitchBook, q3-2025-pitchbook-nvca-venture-monitor.pdf

Fidelity Investments, The business cycle approach to asset allocation White Paper

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