Follow us on
Difitek
  • News
  • What We Offer
  • Contact Us
  • Visit our Site

The Importance of Infrastructure

4/3/2014

 
Immagine
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


Immagine
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.





Comments are closed.

    RSS Feed

       

    Categories

    All
    All Sectors
    Americas
    API
    Asia
    Australasia
    Clean Energy
    Crowd Valley
    CTO Blog
    Difitek
    Equity Investment
    Europe
    Events
    Expert Analysis
    Fintech
    Global
    Interview
    Lending
    Local Funding Network
    Marketing
    Market Watch
    Oceania
    Platform Updates
    Presentations
    Press Release
    Real Estate
    Regulations
    Russia
    Social Capital
    Webinar

Back to Difitek website


Copyright 2018 Crowd Valley Inc. 
All Rights Reserved.

Crowd Valley does not engage in the offer, sale or transfer of securities and securities may not be offered, sold or transferred via this website. Securities may not be offered or sold in the United States absent (i) registration under the U.S. Securities Act of 1933, as amended (the Securities Act) or (ii) an available exemption from registration under the Securities Act. Please consult legal counsel in the appropriate jurisdiction before offering, selling or buying securities as registration under the Securities Act or similar state legislation may be required.

Please note that the provision of the information on this website does not create and is not intended to create a relationship between Crowd Valley Inc. and any other person. You are not and should not regard yourself as being a client or customer of Crowd Valley Inc. and must not expect Crowd Valley Inc. to have any duties or responsibilities to you, act for you or your clients, or be responsible for providing protections afforded to customers or yourselves or be responsible for advising you in any respect.