Freitag, 5. April 2013

Will Crowdinvesting Disrupt Capital Markets?

The Calgary Herald:

The following three aspects of Crowdfunding could disrupt capital markets:


The transparency and social networking dynamics of crowdfunding have been excellent at keeping fraud near zero, to the point where many people feel heavy regulation will work against this new economic machine. The participatory nature of Crowdfunding creates a public forum of sorts between funders as well as the target investment. In an industry shrouded in secrecy and back door deals, transparency to the public is the driving force behind the rise of Crowdfunding.


Current financial products can be repackaged to be delivered through a Crowdfunding model.  Indicating where things are headed, for accredited investors there is IRAvest, the Internet’s first equity-based crowdfunding portal specifically created for self-directed IRAs.


The issue is entrepreneurs find it very difficult to access financing so Crowdfunding is a huge transformation in the small business financing landscape. Considering small business account for the majority of job creation in both Canada and the US, the implications could be very promising for the economy.  From a small investor perspective you will now have access to an asset class that was previously difficult to engage.

If you would like to support Crowdfunding in Canada, you can sign i-Canada’s Crowdfund Invest Campaign petition here. Crowdfund Investing will change the rules of investment for the first time since the 1930s. It will add the power of the phenomenon of our new age – social media – to the world of finance. Companies and idea will now be able to rise, where before they would not have had a chance.