Since the early days of crowd investing, which for us mean 2008 and 2009, we have seen the need for a connected ecosystem, rather than isolated silos. This is today more true than ever, and the crowd investing market has developed to included many different dimensions to consider.
1) Support for Various Asset Classes
In today's market, there are marketplaces for retail, sophisticated and institutional investors to make both equity and debt investments into asset classes such as early stage private companies, later stage private companies, real assets such as properties, renewable energy projects and so on.
With such a diversity of models, it is important that the ecosystem is able to navigate all the models, but also work together to drive the right interested parties to the right marketplace. For example, one marketplace operator might have deep knowledge in the properties in California, but a large part of their investor audience audience is further interested in other assets, such as cleantech projects overseas. Such an overseas cleantech marketplace might have the same issue, but the other way around. Being able to create syndicate opportunities and point investors to the right areas of interest with ease, is an important proposition of a working ecosystem.
2) Tackling Various Jurisdictions and Models
In the example above, there may be peculiarities and intricacies that need to be addressed with the US Securities Regulation and the relevant overseas jurisdiction and regulation. Securities Regulations can be extraordinarily complex and e.g. navigating how overseas issuers can participate in the US Capital Markets can prove onerous and incredibly demanding (see our introduction here, link to Dans post). Further, the risk of an inadvertently poor approach is dire and comes with vast risks.
For a sector specialist, it does not bode well to take responsibility of all such regulations directly, but an ecosystem of partners in the right markets and jurisdictions, holding the right securities and financial licenses and rights, there may be synergies to develop these types of partner models, where the specialized operator can support the local jurisdiction and market.
3) The Online Private Securities Markets Evolution
Looking into the future of these sector specialized marketplaces and their operators, it is only expected that they expand. Whether that means they expand their sector, or asset base or their served audience, all variations will surely come into question in the market and develop in parallel. Therefore it is only a matter of time until this infrastructure on a global level becomes increasingly needed for a viable offering, given that many local approaches can also be questioned in their longer term viability.
Viable business models will be a cornerstone in the longer term success of the market, given that the operators will have to be able to fulfil their duties with regard to the marketplaces operations, efficiency, compliance and investor protection. Without a sustainable business model, these core functions of the marketplace come into question and undoubtedly cause possible harm in the marketplaces operations.
Given that private securities with crowd investing are just developing, these partnerships and ecosystems are an invaluable part of the ecosystem that will need to exist to make the market sustainable and viable in the longer term. This is also the reason we at Crowd Valley have invested extensively and continue to do so, to create the global infrastructure for online private securities operations.
Image credit to: kevin dooley. http://bit.ly/1o9YtF2
In today's market, there are marketplaces for retail, sophisticated and institutional investors to make both equity and debt investments into asset classes such as early stage private companies, later stage private companies, real assets such as properties, renewable energy projects and so on.
With such a diversity of models, it is important that the ecosystem is able to navigate all the models, but also work together to drive the right interested parties to the right marketplace. For example, one marketplace operator might have deep knowledge in the properties in California, but a large part of their investor audience audience is further interested in other assets, such as cleantech projects overseas. Such an overseas cleantech marketplace might have the same issue, but the other way around. Being able to create syndicate opportunities and point investors to the right areas of interest with ease, is an important proposition of a working ecosystem.
2) Tackling Various Jurisdictions and Models
In the example above, there may be peculiarities and intricacies that need to be addressed with the US Securities Regulation and the relevant overseas jurisdiction and regulation. Securities Regulations can be extraordinarily complex and e.g. navigating how overseas issuers can participate in the US Capital Markets can prove onerous and incredibly demanding (see our introduction here, link to Dans post). Further, the risk of an inadvertently poor approach is dire and comes with vast risks.
For a sector specialist, it does not bode well to take responsibility of all such regulations directly, but an ecosystem of partners in the right markets and jurisdictions, holding the right securities and financial licenses and rights, there may be synergies to develop these types of partner models, where the specialized operator can support the local jurisdiction and market.
3) The Online Private Securities Markets Evolution
Looking into the future of these sector specialized marketplaces and their operators, it is only expected that they expand. Whether that means they expand their sector, or asset base or their served audience, all variations will surely come into question in the market and develop in parallel. Therefore it is only a matter of time until this infrastructure on a global level becomes increasingly needed for a viable offering, given that many local approaches can also be questioned in their longer term viability.
Viable business models will be a cornerstone in the longer term success of the market, given that the operators will have to be able to fulfil their duties with regard to the marketplaces operations, efficiency, compliance and investor protection. Without a sustainable business model, these core functions of the marketplace come into question and undoubtedly cause possible harm in the marketplaces operations.
Given that private securities with crowd investing are just developing, these partnerships and ecosystems are an invaluable part of the ecosystem that will need to exist to make the market sustainable and viable in the longer term. This is also the reason we at Crowd Valley have invested extensively and continue to do so, to create the global infrastructure for online private securities operations.
Image credit to: kevin dooley. http://bit.ly/1o9YtF2
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 a spinoff from the Grow VC Group. He is also a global investor and Senior Partner at the Grow VC Group. During his tenure as COO of Grow VC, he recruited over 120 individuals, built up a global team on six continents and expanded operations to over 150 countries. In his earlier businesses, he served in diverse roles, taking on the responsibilities of CFO and increasing sales growth of over 270% per year over several subsequent years. Markus 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.
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 a spinoff from the Grow VC Group. He is also a global investor and Senior Partner at the Grow VC Group. During his tenure as COO of Grow VC, he recruited over 120 individuals, built up a global team on six continents and expanded operations to over 150 countries. In his earlier businesses, he served in diverse roles, taking on the responsibilities of CFO and increasing sales growth of over 270% per year over several subsequent years. Markus 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.
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