A recent report published by research firm, TABB Group shows that the hockey stick growth of the global crowdfunding market continues, with the number of online platforms multiplying and the amount of raised funds growing at fast pace.
Such a dynamic market has of course caught the attention of professional investors, who are starting to invest in the most established and performing crowdfunding platforms in the world. As reported recently by Fortune, among the reasons that push them to pursue these kinds of investment opportunities there is the fact that they recognize in crowdfunding the potential to expand and change the early-stage finance world, filling in part of the financing gap, for example providing capital to NGOs and artists, who have often troubles to raise finance.
However, professional investors are not only directly investing into crowdfunding platforms and the ideas or startups coming out of them. They are also entering the crowdfunding space, by turning into platform owners and operators themselves. By bringing their operations online onto securities crowdfunding portals, private equity funds, business angels network, investment clubs, etc., aim to make their process more efficient, direct and transparent. Crowd Valley is strongly convinced that these are the first signs that show that crowdfunding is not going to change only the startups world, but will create a paradigm shift in the entire traditional finance sector.
De Cambre Quartz, M. (2014). Why crowdfunding is set up to explode in size over the next few years. Nextgov.com
Noyes, K. (2014). Why investors are pouring millions into crowdfunding. Fortune.
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.