Crowdfunding 2.0 – A new asset class for your online brokerage account

 

By: Blaine McLaughlin Via Folio and  CrowdFund Beat Sr. Guest Editor

Part One

In order to understand where we are and where we are going next, we need to look at where we have been and learn from all of that experience. Let’s begins with a review of the key milestones in the evolution of investing for individuals and how we have carried innovations from each stage into the next, to reach what I’m calling Crowdfunding 2.0:

The evolution of investing to now include the ability for individuals to invest in small private companies, real estate securities and funds as part of their diversified portfolio allocation using an online brokerage account, whether you manage it yourself or hire an advisor to do it for you.

viafolio

 

 

 

Investing 1.0 – The 1970s brokerage

Reflect for a moment what it was like to buy a publicly listed and traded stock before the internet and online brokerage accounts. You found a broker, in an office building in downtown, set up a meeting, drove there during business hours, paid for parking, signed a lot of paperwork and wrote a big check to pay for the stock or two that the broker recommended to you. The check had to be big in order to get the meeting with a busy broker, it had to be big because you generally bought at least a hundred shares (a “round lot”) at $20 to $50 each and you were going to pay at least a couple of hundred dollars in commissions to the broker.

Once your account was approved, your check deposited, and your order placed and settled, you would get a paper certificate back showing your ownership of the shares of the company. Then when you wanted to get your money back, you would repeat this process by bringing the stock certificate back to the broker and ask them to sell it.

Given this setup, most people did not invest in publicly listed and traded stocks or other securities because they simply could not afford it. Unfortunately, this is nearly the same process that private companies and the brokers who sold them have used for decades with very little change, except that you had to know which brokers sold these private investments, know which broker represented which offerings you might want, and make even larger investments to participate if you were rich enough to even be allowed to invest in private offering.

Coming Soon Part II

 

blainemclaughlin (1)Blaine McLaughlin is the Chief Operating Officer of VIA Folio, an innovative private investment

platform that makes it easy for portals, issuers, brokers and advisors to engage with private debt and equity offerings. VIA Folio supports issuance, custody, servicing and secondary transactions in private equity and debt investments and other unlisted securities. He joined the company in 2007, and has led retail customer acquisition and management, partnerships, licensing, portfolio acquisition, introducing broker services, and other business development activities for Folio Investing.
McLaughlin previously served as a Director of Marketing and Analysis at Capital One for credit card and direct banking divisions, and as an officer in the U.S. Navy. He has more than 15 years of experience in the financial services industry, holds a degree in economics from the University of California at San Diego, and an MBA from the Wharton School at the University of Pennsylvania.

 

Tags: , , , , , , , , , , ,

HEADLINE NEWS

Mountain XpressFaces in the crowd: WNC crowdfunding initiatives | Mountain XpressMountain XpressEach week, Xpress highlights notable WNC crowdsourcing initiatives that may inspire readers to become new faces in the crowd. This week features Smiling ...and more » [...]

ForbesReal Estate Crowdfunding: 3 Trends to Watch in 2017ForbesReal estate crowdfunding continues to be a dynamic and ever-evolving industry, growing to an estimated $3.5 billion in 2016. By 2025, the crowdfunding industry as a whole is anticipated to be valued at more than $300 billi [...]

Entrepreneur3 Secret Weapons to Make Your Crowdfunding Campaign a Resounding SuccessEntrepreneurCrowdfunding sites like IndieGogo and Kickstarter popped up to provide a solution, by offering perks to early adopters of technology and products in exchange for funding, and by 2015 the cr [...]

Crowdfund InsiderGridShare Targets Renewable Energy Crowdfunding under Reg CF, Plans International ExpansionCrowdfund InsiderGridshare is one of the newest Reg CF crowdfunding platforms to receive regulatory approval. While the number of Reg CF portals is growing, Gridshare is the fir [...]

LiliputingCrowdfunding means Netbooks don't have to be cool (or popular) to ...LiliputingThe GPD Pocket is a notebook with a 7 inch, 1920 x 1200 pixel display, a quad-core Intel Atom Cherry Trail x7-z8700 processor, 8GB of RAM, and 128GB of ...and more » [...]

Android Authority (blog)Crowdfunding project of the week: Professor Einstein robot is the coolest digital assistantAndroid Authority (blog)It's time to dive into the crowdfunding world to find you another featured campaign. In this article series we aim to highlight the hottest p [...]

The Australian Financial ReviewSlow-clap for ScoMo's dodo; equity crowdfunding legislation that is already extinctThe Australian Financial ReviewThe key problem with the proposed framework for the equity crowdfunding bill is it effectively locks out 99 per cent of small businesse [...]

EntrepreneurHow to Make a Crowdfunding Video People Actually WatchEntrepreneurTo draw serious interest from prospective investors, you must spend time and resources in fine-tuning your message.and more » [...]

TrustedReviewsZTE's smartphone crowdfunding campaign went really badlyTrustedReviewsZTE has prematurely ended a crowdfunding campaign that was designed to bring the vision of the brand's fans to life. Unfortunately, it seems fans had other ideas. The company had been hoping [...]

Courier MailCrowd-funding to light up festivalCourier MailWynnum Manly Events Incorporated is crowd-funding $25,000 for this year's festival, expected to be held on June 17. Group president David Saunders said they decided to crowd-fund the event because in the past it had been t [...]

CFB Finance

Syml
Lst Val
+/- Val
+/- %

Marketwired

  • Crowdfunding
  • Crowdfund
  • Peer to Peer Lending
  • FinTech
  • Reg A+
  • Reg CF
  • Crowdfunding USA

Press Release

CrowdFund Beat Media

The 4th Annual Crowdfunding USA Conference & Workshop ln.is/lnkd.in/nugJz

Live Crowdfunding .tv

What's Next Step in Regulation A+ JOBS ACTS Title IIII :L Interview : Steve Cinelli with Brian Korn Securities and Crowdfunding/Peer-to-Peer Lending Lawyer, Watch more video library | Conference | Interview | Campaign Showcase | Research | Education |