The Calgary Herald:
The following three
aspects of Crowdfunding could disrupt capital markets:
Transparency
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.
Versatility
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.
Accessibility
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.
