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

When a Stock Exchange Looks into Crowdfunding

11/3/2014

 
Picture
Singapore Exchange, one of Asia’s leading stock markets, has begun considering the feasibility of an equity crowdfunding platform for early-stage companies, and has formed a team focused on small and medium-sized enterprises.

The purpose which pushed Singapore Exchange to create a team to investigate the possibility of setting up a crowdfunding portal is to find a way to improve access to finance for SMEs. In fact, public listing may not be feasible or cost-effective for businesses that do not have a minimum scale.Therefore an alternative portal where SMEs can raise finance from accredited investors could be a potential way to bridge the gap to public markets.

It is interesting to see that a stock exchange is looking into crowdfunding as a way to expand its activity. Crowd Valley, which has been active in this new sector at global level since already more than two years, has observed during this time an increasing interest from traditional finance actors. This confirmed what the company thought from the very first moment it entered the market: crowdfunding is not just for startups and creative projects. There is a whole world of different applications out there.

The following graph well represents the variety of crowdfunding applications that may exist, by crossing three different dimensions: Security Type, Investor Type and Scope of Portal. In the case of Singapore Exchange, if they were ever to expand into crowdfunding, their portal would be allocated somewhere in the mid-upper right corner, since it will likely be only accessible by accredited investors buying equity shares in SMEs. The portal’s scope would be “vertical integration” as Singapore Exchange would expand its activities down the line towards smaller companies.


Immagine
Crowd Valley can provide solutions for a variety of crowdfunding applications, as shown in the graph. Get in touch with our team for more information.


References
Sacks-McLeod (2014). People power at Singapore Exchange! Crowdfunding on the horizon. Leaprate.com
Photo credit to: Storm Crypt.  
http://bit.ly/1zrjlxl

Picture
About the author - Irene Tordera

Born and raised in Milan, Italy, Irene is an International Business graduate, with a strong interest for innovative ideas that can simplify our lives.

During her studies, she co-founded an online community for sportspeople and worked in marketing positions at Ogilvy & Mather Advertising and at the European Business Angel Network, in Brussels. She is a passionate blogger about crowdfunding and the startup ecosystem.





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.