The adoption of equity and debt crowdfunding has left most if not all policy makers and regulatory bodies challenged to find the right framework to properly regulate the array of platforms launching into the market. These platforms have given accredited and retail investors alike access to alternative investments they would not otherwise have. One area overlooked by most investors and now being addressed by regulatory bodies is investment liquidity. Venture capitalists and business angels traditionally would achieve liquidity with the acquisition of the investment. Crowdfunding differs, an IPO or acquisition isn’t out of the questions but it certainly is less likely.
The first regulatory commission to have an open sandbox discussion is the UK’s FCA. In the most recent “Call for Input”, liquidity was referenced a number of times within the review of lending based crowdfunding. Liquidity in equity crowdfunding has been a hot topic earlier in the year. This open conversation and eventual drafting of regulation will no doubt mirror how other countries solve this issue.
Crowd Valley’s close cooperation with the FCA and UK crowdfunding market already sees its clients utilizing the secondary market API developed in anticipation of the markets needs and potential regulatory policy. Other crowdfunding pioneers like Crowdcube have recently committed to providing increased liquidity and access to a secondary markets for their investors. We anticipate other countries like the US, Singapore, Malaysia, Japan and Canada to adopt similar framework in the near future.
This also opens up the opportunity for tertiary digital finance businesses to pair with existing platforms to aggregate their secondary market opportunities. There are already examples of data aggregators such as Deal Index in the market. With the personal view of great future opportunities in primary and secondary market deal aggregation being facilitated by the “API economy”.
We at Crowd Valley are committed to future changes in regulation with a proven track record in helping our clients identify opportunities and enter new markets in a very meaningful way.
If you are looking to capitalise on collaboration within the fintech space, get in touch with us at Crowd Valley to leverage our full offering and industry leading Digital Back Office that bridge the gap into fintech.
Crowd Valley’s close cooperation with the FCA and UK crowdfunding market already sees its clients utilizing the secondary market API developed in anticipation of the markets needs and potential regulatory policy. Other crowdfunding pioneers like Crowdcube have recently committed to providing increased liquidity and access to a secondary markets for their investors. We anticipate other countries like the US, Singapore, Malaysia, Japan and Canada to adopt similar framework in the near future.
This also opens up the opportunity for tertiary digital finance businesses to pair with existing platforms to aggregate their secondary market opportunities. There are already examples of data aggregators such as Deal Index in the market. With the personal view of great future opportunities in primary and secondary market deal aggregation being facilitated by the “API economy”.
We at Crowd Valley are committed to future changes in regulation with a proven track record in helping our clients identify opportunities and enter new markets in a very meaningful way.
If you are looking to capitalise on collaboration within the fintech space, get in touch with us at Crowd Valley to leverage our full offering and industry leading Digital Back Office that bridge the gap into fintech.
About the author - Pete Woodard
Pete has worked within FinTech since 2013 across a broad range of security applications serving multiple verticals. He has scaled Google Venture backed startups in the AdTech space before joining Crowd Valley. Originally from Canada with a education background in Mechanical Engineering and Marketing. Pete has helped to open up new global markets in the digital investing and lending space. When not firmly rooted in the London FinTech scene he enjoys travelling, always mixing business with pleasure. He has spoken to over 1000 digital investing entrepreneurs, which makes him a valuable resource for trends in new security models.
Pete has worked within FinTech since 2013 across a broad range of security applications serving multiple verticals. He has scaled Google Venture backed startups in the AdTech space before joining Crowd Valley. Originally from Canada with a education background in Mechanical Engineering and Marketing. Pete has helped to open up new global markets in the digital investing and lending space. When not firmly rooted in the London FinTech scene he enjoys travelling, always mixing business with pleasure. He has spoken to over 1000 digital investing entrepreneurs, which makes him a valuable resource for trends in new security models.
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