By Freddie Dawson ,Forbes Contributor
Much has been made about the ability of crowdfunding to transform new-business finance. Whether it is through a rewards based model, a peer-to-peer lending model or an equity finance model, the crowd has been theorised as the answer to a lack of appetite for risk amongst traditional finance institutions coupled with the always-present financial constraints placed on innovation.
Carrying crowdfunding through to its furthest potential conclusions, it has been theorised that it could take the place of banks for many functions – both for entrepreneurs and investors. It has also been put forward as a replacement to other forms of finance operating in the same sphere, such as angel investing and Venture Capital (VC).