Who’s eyeballs are on crowdfunding? Well, the complete planet is observing at the US market for business crowdfunding. Although business crowdfunding is legal in other areas out side the US, eyes are on the US crowdfunding new players.
Individuals want to get in the investment return action. When was the last time you were able to participate in the next Facebook or Twitter? Those type of investments have been only available to the ultra high networth type of investors. Now the network is enabling the small mom and pop and friends and family members of the startup business to get involved.
For the reason that bitsy investors will be in the hot action, institutions will want to get involved with the crowd. RIA’s to various hedge funds will get in on the crowdfunding deal mania. The safest deals will probably be debt type of deals because they will more then likely have some assets tied to the debt for security such as the David Bowie bonds along time ago. The records were used as colateral to the bond holders. Bowie wanted to buy back his prior records off the record labels. Thank god he did because Itunes came out and he banked out hard. The same will happen in the crowd but with a different deal.
Because there will be so many sites and deals, researchers will get involved primarly following the hot sectors and companies. They will also keep an eye on the consultants that put the deals together because of their crowd expertise.
Advisors will be the goto person for business’s that need capital fast and don’t want to hear about any obstacles the capital formation. The business knows it’s business while the consultant knows how to raise capital.
General new capital formation is arriving and business will get funded with a new capital vehicle called crowdfunding. Along the way, there will be several new players in the capital formation process that wasn’t seen 10 years ago. You have individuals, institutions, researchers, and consultants.
Crowdista Fundistica chats about the monetary markets and peer to peer lending . She also authors about some of the 403b contributions limits gossip of the day. On her time off she jogs on the seaside and does Athletics.