It's almost a year since Title II of the JOBS Act made its way into law July 10th, 2013 . Despite the ground breaking amendments to allow public solicitation of investment offerings and changes to offerings of securities sales, it still seems the industry is eagerly anticipating taking it to the next level.
The American capital markets are unique in their breadth and depth, as well as their appreciations of entrepreneurship, innovation and new technology. The American people seem to have an entrepreneur's DNA embedded to their very core, and the drive to try new things and support those who challenge the status quo for the better. Despite the complexity of the securities market and securities regulations, foreign companies and investors often find what they are looking for in the American capital markets.
Yet for all we've written about intrastate regulatory advances within the US, as well as the corresponding national advances around the world, there is still an anticipation for the next level in the market within the US. And we believe we will get there, there's too much at stake. Therefore, in recognition of the 4th of July, there is a lot to look forward to from the American crowd investing ecosystem.
Participation in innovation will increase
The democratic aspects of crowd investing, in particular as it relates to the general public, is a key component of the new market. The US market already has large participation in new innovation, as compared to other countries around the world, however, the open nature of crowdfunding can be seen to increase this dramatically for unprecedented outcomes. In addition to gaining unprecedented access to new innovations and technologies, new audiences will also bring new perspective and value to new innovations and markets and have their voices heard in shaping new products and services.
New information will also boost participation from the traditional sector, whether accredited investor or corporations, by serving as additional tools for filtering and sourcing, decision-making, and access in the domain. More information should yield better outcomes for new and old industries alike.
Vertical markets will bring new advances to market
There's a lot to look forward to when it comes to areas that are currently underserved, whether or not it's sectors where a gap exists between supporters and projects finding one another. Sustainability and clean energy is a prime example where popular support is strong, however the reality and finding your supporting 'crowd' is often different. That may change given that new audiences can access new projects via the Internet, rather than projects possibly going unnoticed.
New access may also benefit in other areas of inequality, for example when it relates to supporting underserved minorities such as ethnic groups or women entrepreneurs or companies that create offerings to serve such audiences. Leveling the playing field can bring a lot of information to the general public and as we've seen with non-securities crowdfunding, mobilizing a crowd can lead to increased visibility and support.
New geographies will get their champions
Outside Silicon Valley other regions will get their own specific portals and brokers that serve their local communities. The US is a big place and when you're running a company with specialized knowledge, requirements and that knowledge or support is thousands of miles away. That doesn't mean that the product or service will not be needed, but bringing it to market will be more difficult with resources and connections harder to come by.
Increased connectivity fosters many new innovative approaches, as well as new ways of effectively taking ideas to market. Being able to attract the right people, and the right people being able to contribute in a meaningful way, can catalyze development in rural areas that otherwise may not have been accessible.
As we celebrate the 4th of July and what the United States represents to the American people and to the world, we also look forward to the capital markets' development and the impact this will have on this great nation.
Photo Credit to: Ian Britton http://bit.ly/1m8qzyE
Yet for all we've written about intrastate regulatory advances within the US, as well as the corresponding national advances around the world, there is still an anticipation for the next level in the market within the US. And we believe we will get there, there's too much at stake. Therefore, in recognition of the 4th of July, there is a lot to look forward to from the American crowd investing ecosystem.
Participation in innovation will increase
The democratic aspects of crowd investing, in particular as it relates to the general public, is a key component of the new market. The US market already has large participation in new innovation, as compared to other countries around the world, however, the open nature of crowdfunding can be seen to increase this dramatically for unprecedented outcomes. In addition to gaining unprecedented access to new innovations and technologies, new audiences will also bring new perspective and value to new innovations and markets and have their voices heard in shaping new products and services.
New information will also boost participation from the traditional sector, whether accredited investor or corporations, by serving as additional tools for filtering and sourcing, decision-making, and access in the domain. More information should yield better outcomes for new and old industries alike.
Vertical markets will bring new advances to market
There's a lot to look forward to when it comes to areas that are currently underserved, whether or not it's sectors where a gap exists between supporters and projects finding one another. Sustainability and clean energy is a prime example where popular support is strong, however the reality and finding your supporting 'crowd' is often different. That may change given that new audiences can access new projects via the Internet, rather than projects possibly going unnoticed.
New access may also benefit in other areas of inequality, for example when it relates to supporting underserved minorities such as ethnic groups or women entrepreneurs or companies that create offerings to serve such audiences. Leveling the playing field can bring a lot of information to the general public and as we've seen with non-securities crowdfunding, mobilizing a crowd can lead to increased visibility and support.
New geographies will get their champions
Outside Silicon Valley other regions will get their own specific portals and brokers that serve their local communities. The US is a big place and when you're running a company with specialized knowledge, requirements and that knowledge or support is thousands of miles away. That doesn't mean that the product or service will not be needed, but bringing it to market will be more difficult with resources and connections harder to come by.
Increased connectivity fosters many new innovative approaches, as well as new ways of effectively taking ideas to market. Being able to attract the right people, and the right people being able to contribute in a meaningful way, can catalyze development in rural areas that otherwise may not have been accessible.
As we celebrate the 4th of July and what the United States represents to the American people and to the world, we also look forward to the capital markets' development and the impact this will have on this great nation.
Photo Credit to: Ian Britton http://bit.ly/1m8qzyE
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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