It is interesting to see that a stock exchange is looking into crowdfunding as a way to expand its activity. Crowd Valley, which has been active in this new sector at global level since already more than two years, has observed during this time an increasing interest from traditional finance actors. This confirmed what the company thought from the very first moment it entered the market: crowdfunding is not just for startups and creative projects. There is a whole world of different applications out there.
The following graph well represents the variety of crowdfunding applications that may exist, by crossing three different dimensions: Security Type, Investor Type and Scope of Portal. In the case of Singapore Exchange, if they were ever to expand into crowdfunding, their portal would be allocated somewhere in the mid-upper right corner, since it will likely be only accessible by accredited investors buying equity shares in SMEs. The portal’s scope would be “vertical integration” as Singapore Exchange would expand its activities down the line towards smaller companies.
Sacks-McLeod (2014). People power at Singapore Exchange! Crowdfunding on the horizon. Leaprate.com
Photo credit to: Storm Crypt. http://bit.ly/1zrjlxl
Born and raised in Milan, Italy, Irene is an International Business graduate, with a strong interest for innovative ideas that can simplify our lives.
During her studies, she co-founded an online community for sportspeople and worked in marketing positions at Ogilvy & Mather Advertising and at the European Business Angel Network, in Brussels. She is a passionate blogger about crowdfunding and the startup ecosystem.