Alternative Finance: Disruption or Collaboration?

Neha Manaktala

 by Neha Manaktala, Founder / CEO, DealIndex, CrowdFundBeat contributing guest

Rather than trying to supplant banking and venture capital, a collaborative model is emerging whereby digital platforms work side by side with traditional investors and financial institutions.

Over the last few years, much has been made of the potential for alternative finance to disrupt the traditional financial industry, including subverting the established bank loan process with P2P lending. Some may wonder if this will actually be the case, and additionally, whether alternative finance as a whole, will disrupt the traditional early stage investment industry.

Thus far, it appears the alternative finance market is actually moving in the opposite direction. Rather than trying to supplant banking and venture capital, a collaborative model is emerging whereby digital platforms work side by side with traditional investors. This trend is evidenced by a number of developments. There is an increasing trend towards investor-led platforms. Such platforms allow individual investors to follow the lead of an accredited investor, showing how traditional financing and alternative financing can work in harmony.



The emergence of a secondary market for private company shares is making it easier than ever for institutions to participate in the space. According to media sources like the Financial Times, even businesses as regulated and traditional as mutual funds are now investing in private companies, such as Uber and Pinterest. Large institutions are starting to utilise P2P lending as well, with the UK’s Metro Bank announcing that it would start lending customer deposits through P2P platform Zopa. Goldman Sachs itself, widely seen as the pinnacle of traditional investment banking, has even announced that it will start lending through a digital consumer-driven platform. All of these points show how rather than disrupting traditional financing models, alternative finance is developing its own collaborative niche within the industry.

Register for a free trial of the DealIndex dashboard to track over 250 live private company deals across 5 continents in real-time here. Download a free copy of the DealIndex report, Democratising Finance, Alternative Finance Demystified here.

Tags: , , , ,


This RSS feed URL is deprecated, please update. New URLs can be found in the footers at [...]

NPRAfter Outcry, Crowdfunding Site Patreon Backs Off Plan To Raise ...NPRThe popular crowdfunding service Patreon has backed off plans to change its payment structure, after widespread, vocal and passionate opposition from creators and their fans. Last week, the site announced it woul [...]

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 [...]

TechCrunchHow hate speech crowdfunding outfit Hatreon crept back online ...TechCrunchIf you want to make a living creating white supremacist content, you're probably not going to do it via sites like Kickstarter and Patreon, which prohibit hate speech. Fortunately there's Ha [...]

Aberdeen Evening ExpressFierce Beer smash crowdfunding target in bid to open first bar in AberdeenAberdeen Evening ExpressAn Aberdeen brewery has hailed the “incredible” response to a crowdfunding campaign after it smashed the original £60,000 target in just 24 hours. The Evening Expr [...]

EntrepreneurWhy Some Small Business Owners Are Turning to Crowdfunding to Save Their CompanyEntrepreneurMany owners of beloved local businesses, especially in pricier cities, have been forced to swallow their pride and appeal to their customers in times of crisis -- a process streamli [...]

Japan TodayZoo starts crowdfunding campaign to protect endangered birdJapan TodayA Toyama zoo has launched a crowdfunding campaign to collect funds to protect an endangered Japanese bird designated as one the nation's special natural treasures. To supplement funding from the stat [...]

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 [...]

Born2InvestHere are the latest updates on the crowdfunding industryBorn2InvestWhen pressed for the reason behind the move, the company pointed to their charter which states that Kickstarter is committed to the arts and creative projects. Another provision in the charter shows that the [...]

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 [...]

CFB Finance


  • 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 |