Looking back at the progress in the market during the past year, one can’t help but await the New Year with anticipation. A year ago, we compiled market predictions for the New Year and we can look at the trends highlighted earlier to have begun. As we look at the expansion of the market, it's an appropriate time to set a list of new trends to anticipate for the year of 2015.
The year of 2015 will see the inception of an actual ecosystem. So far the market can be seen to have operated in a large cacophony of actors, largely operating individually or with some superficial forms of collaborations. The New Year will see the start of collaborations that are deep and fundamental, where parties find synergies in numbers and speciality competence. Value chains will emerge in the ecosystem, with all encompassing operations complemented by specialist organizations playing a certain part in the broader ecosystem. Arguably, the peer to peer and digital investment market warrants the emergence of a functioning ecosystem, as it is cornerstone to a liquid and ultimately successful marketplace.
Predictions for the year of 2015:
1) Primary marketplaces will start to function in an ecosystem. Issuer side and investor side marketplaces and services will cooperate and buy into primary marketplaces. Secondary markets will start to emerge, both in lending and equity marketplaces in select geographies. Part of these will see liquidity, most will not.
2) Traditional capital market actors (large funds such as pensions and sovereign wealth funds, funds of funds etc) will assess their role in the market and pick out a stake to benefit the market with. These will be limited in function and have a narrow, but deep impact on the market, such as underwriting marketplaces or providing wholesale capital for example through co-investment structures.
3) Financial service providers with large assets on their books or investor bases will enter the market in limited roles, either operating primary marketplaces, investor side platforms or issuer side platforms. Examples will include underwriters, insurers and others who employ asset management within their group of operations.
4) Clear specialization will emerge among platforms. Primary marketplaces will provide a deep competence in their niche, with value added services and strong track records in the relevant domain.
5) Market consolidation, as called for last year, will continue both in the form of partnerships as well as natural turnover in the industry. Both trends will see further alignment across the industry participants that will ultimately benefit market viability.
We look forward to the sophistication and growth of the market in line with these trends. Looking ahead, there is a lot to happen in the market and part of it will fall into the year of 2015. We await with anticipation to work with various pioneers in their respective fields as new models are proven and expanded upon. Crowd Valley will continue to report its market findings and track activity cross segments.
Image credit to: olsonj http://bit.ly/1AfNvTL
About the Author - Markus Lampinen
Internationally awarded entrepreneur, active in pioneering new securities models worldwide at the intersection of the Internet and the securities markets. Markus serves as the CEO of Crowd Valley Inc, a US-based crowdfunding marketplace platform provider and part of the Grow VC Group. He is also a global investor and partner in the Grow VC Group. Since 2009, he has recruited over 120 individuals in the digital securities market, built up a operations on six continents and been recognized as one of the top 100 thought leaders in crowdfunding. In his earlier businesses, he served in diverse executive roles, for example taking on the responsibilities of CFO and increasing sales growth of over 270% per year over several subsequent years. Markus has studied finance, management and computer sciences, and holds an M.S. and a B.A. in Economics.
Markus has pioneered new funding models in the US and Europe, advised policy makers worldwide—including the SEC, the European Commission and Italian regulator CONSOB—for more effective markets, and worked with visionary organizations such as the World Bank and the Kauffman Foundation to improve frameworks for new funding models, including crowdfunding, cross-border investments and private placements. He serves as a frequent public speaker on related themes. He is married and constantly bringing presents from his travels to his two children.