Three Reasons Why Crowdfunding Will Disrupt Capital Markets

Over the last five years we have seen Internet technology disrupt a number of industries, sending the dominant players into a downward spiral from a kingdom they once ruled. Whether it was ignorance from management teams or simply the fact that technology changed too rapidly for their massive organizations to shift their operations, the results remain the same with new companies taking over as the market leader. Its not just the main players that are effected when an industry is disrupted either, its all of the supporting industries and service companies that receive a rude awakening as well.

The music industry was quietly taken over by Apple and its iTunes service when executives failed to adapt to online music piracy.

Video rental giant Blockbuster filed bankruptcy in 2012 after years of opting not to enter the online market via an acquisition of Netflix.

Amazon’s online book sales’ having an effect on traditional bookstore chains is an understatement.

Newspapers….you get the idea.

With the rise of Crowfunding platforms around the global and non-profit organizations like the National Crowdfunding Assocation of Canada (NCFA Canda) advocating Crowdfunding within their respective countries, it appears to be only a matter of time before our capital markets are disrupted by this Internet technology trend. The launch of the JOBs act in the United Sates, short for Jumpstart Our Business Startups, gives the ability for the general public to receive company equity in exchange for funding is now a possibility. Excessive profits, amid fraud and scandals have really demonstrated the inefficiencies in the worlds capital markets, which is why the following three aspects of Crowdfunding could disrupt capital markets:

Transparency

The transparency and social networking dynamics of crowdfunding have been excellent at keeping fraud near zero, to the point where many people feel heavy regulation will work against this new economic machine. The participatory nature of Crowdfunding creates a public forum of sorts between funders as well as the target investment. In an industry shrouded in secrecy and back door deals, transparency to the public is the driving force behind the rise of Crowdfunding.

Versatility

Current financial products can be repackaged to be delivered through a Crowdfunding model. Indicating where things are headed, for accredited investors there is IRAvest, the Internet’s first equity-based crowdfunding portal specifically created for self-directed IRAs.

Accessibility

The issue is entrepreneurs find it very difficult to access financing so Crowdfunding is a huge transformation in the small business financing landscape. Considering small business account for the majority of job creation in both Canada and the US, the implications could be very promising for the economy. From a small investor perspective you will now have access to an asset class that was previously difficult to engage.

If you would like to support Crowdfunding in Canada, you can sign i-Canada’s Crowdfund Invest Campaign petition here. Crowdfund Investing will change the rules of investment for the first time since the 1930s. It will add the power of the phenomenon of our new age – social media – to the world of finance. Companies and idea will now be able to rise, where before they would not have had a chance.

Source: Calgary Herald – Brock Willis

HEADLINE NEWS

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news [...]

TechCrunchFormer Gawker employees are crowdfunding an effort to buy Gawker.comTechCrunchWhile Univision acquired most of Gawker Media's sites last year (and renamed them as the Gizmodo Media Group), the deal didn't include Gawker itself. In fact, BuzzFeed reported last month [...]

ForbesCrowdfunding Do's And Dont's From iFundWomen's Karen CahnForbesDuring our conversation, she was transparent in sharing that her first software company, VProud, failed because she “did everything backwards” and spent too much time trying to perfect the product. “Pe [...]

VentureBeatAtaribox preorders and crowdfunding campaign open on December 14VentureBeatAtari will start taking preorders for its Ataribox game console starting December 14. The New York company will also start its crowdfunding campaign on Indiegogo. In an email blast, Atari said, “We a [...]

CurbedHistoric French chateau now has 13000 owners from crowdfundingCurbedThe Chateau de la Mothe-Chandeniers has had many owners since its construction in the 13th century. Now more so than ever. Over 13,000 strangers have recently banded together to save the fairytale home—which fea [...]

Crowdfunding For French CastlesNPRYou too can own a French chateau, in part, anyway. Romain Delaume, CEO of Dartagnans, tells NPR's Scott Simon about a crowdfunding effort underway to preserve La Mothe-Chandeniers. SCOTT SIMON, HOST: What if I told you that for about $60, you cou [...]

Financial TimesCrowdfunding a mission to save capitalism from itselfFinancial TimesJeff Lynn is on a mission to save capitalism from itself at a time when millions feel locked out, and unable to foresee themselves better off than their parents. His answer: to democratise capital. That [...]

Comics BeatCrowdfunding Watch: Women to the RescueComics BeatAlas, another Monday begins. We're all here at our computers, staring at the screen until our eyeballs turn into raisins. I'll try to keep this week's crowdfunding round-up short and sweet. This week we'r [...]

WRAL Tech WireNew crowdfunding platform launches in North Carolina: LocalstakeNCWRAL Tech WireEasley points out that LocalstakeNC “is the first investment crowdfunding platform exclusively serving North Carolina. Startups and small businesses ranging from technology startups to retail [...]

Crowdfunding Campaign Underway To Establish Freediving Lanzarote DestinationDeeperBlue.comFreediving Champion Marianna Krupnitskaya has set up a crowdfunding page to help her set up an amazing freediving destination in the Canary Islands. The Freediving Lanzarote project will ultimate [...]

CFB Finance

Marketwired

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

Press Release

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 |