Crowdfinance provides 3 concise summaries of the key points:
Crowdfinance allows small businesses and investors of all sizes to raise and invest capital through pooling small amounts from many individuals online. It provides an alternative to conventional finance which has become dominated by large institutions.
While conventional finance and credit markets have become flawed by favoring only large businesses and investors, crowdfinance helps right these imbalances by combining modern technology with more democratic securities regulations.
As crowdfinance platforms and regulations like Reg A+ develop, they have the potential to bring greater investment opportunities to small businesses and retail investors, helping solve problems in credit and capital markets that have exacerbated the wealth divide.
3. • Crowdfinance is applying social
technology to 238 year old U.S.
capitalistic principles in order to
create an abundance of new
opportunity for underwriters,
issuers and investors of all sizes
Crowdfinance is NOT scaryor new
4. It is simply conventional finance but instead of capital
coming from big institutions or Government entities,
modern technology and new securities regulations have
made it possible for businesses to raise capital by pooling
small amounts of monies from a large crowd of individuals
Crowdfinance ISjustlikeconventional finance
5. Crowdfinance can be structured as debt or equity
and it can be broken into three main sub categories:
personal (consumer) finance
P2P Lending, Peer-2-Peer Lending, Marketplace Lending, Digital
Lending
corporate finance
Crowdfunding, P2B Lending, Peer-2-Business Lending, Peer-2-
Real Estate Lending
public finance / Economic development
Just like conventional finance…
6. Crowdfinance is governed by the same underlying principle that enabled
America to transform from a vast farmland into the greatest economic
superpower in the history of the world:
Granting citizens the freedom to invest in the ingenuity of their fellow citizens
Andjust like conventional finance…
8. 2,319 pages that helped big financial Institutions grow even
larger – at the expense of America’s small businesses &
retail investors!
We need to resolve problems –not create new ones!
9. IN ORDER FOR ALIBABA’S IPO
INVESTORS TO REALIZE THE SAME
RETURN AS INTEL’S IPO INVESTORS,
ALIBABA WILL NEED TO BE TRADING
AT A $480 TRILLION MARKET
CAPITALIZATION – 6 TIMES MORE
THAN THE GDP OF EVERY COUNTRY
ON THE PLANET COMBINED!
Equity markets are flawed andunjust
10. • Small businesses can no longer
rely on banks for loans
• Investors can no longer afford to
keep money in low interest
bearing savings accounts
Credit markets are flawed andunjust
11. Conventional fixed-income returns are miniscule
Social Security on the brink of bankruptcy
Investors are starving for yield!
According to the Employee Benefit Research Institute:
a staggering 83% of the nation’s poorest are at risk for running out
of money
66% of workers having saved less than $50,000 for their retirement
28% have saved less than $1,000
FlawedMarkets Leading to Looming Retirement Crisis
14. Research firm Liberum, has P2P on track to be a
$40 billion industry in just the U.S. & U.K. by
2016.
Venture Capital firm, Foundation Capital,
predicts that by 2025, $1 trillion in loans will be
originated online globally
Online lendingisprovidingsolutionstoborrowers & lenders
15. Much more work needs to be done
to bring higher yielding fixed-
income opportunities to retail
investors!
16. Equity side of crowdfinance is developing
JOBS Act inspired offering structures
will bring growth opportunities back
to retail investors:
Reg A+ becomes effective on June 19,
2015
Regulators focused on venture markets
Intrastate crowdfunding laws germinating
state by state
Legislators working on viable federal
unaccredited crowdfunding framework
18. “Since no one is smart enough to predict the ripple effects of
game-changing technologies, it’s important that we have a
capital markets system that provides opportunity for a wide
range of businesses. Only by having lots of balls in the air will we
increase our odds of capitalizing that one company that may
very well save mankind.” – Dave Weild, Former Vice Chairman of NASDAQ & Chairman of IssuWorks