Fresno First Bank sees the value in crowdfunded companies. The bank has recently agreed to allocating $10 million “for small businesses ranging from startups to those with up to $25 million in annual revenue.” Fresno First will partner with Sausalito-based Breakaway Funding, which will help businesses raise “equity capital from their customers or other supporters in the community.”
A solid one-two punch, Breakaway will help companies receive crowdfunding, and Fresno First Bank will provide additional capital to help small businesses expand. The crowdfunding industry is extremely niche and sometimes hard to gauge. With investments coming from multiple sources, there is no one major person or entity putting pressure on companies to deliver a product. This new model of Breakaway leading the charge with an offer of additional funding should attract only serious suppliers and could do a lot to transform the idea of crowdfunding. Banks rarely get behind these types of businesses, so this is an amazing step.