Alternative Finance and Crowdfunding

By Hector Botero  CrowdFundBeat Sr. Contributing  Editor, President & CEO at iCrowdNewswire, LLC

Who will own Alternative Finance and Crowdfunding – you or JP Morgan Chase, Goldman Sachs, Bank of America?

It is a great time in alternative finance, crowdfunding and Fintech having reached the point where innovative ideas become reality and really take off. There is off course evidence these concepts have already “taken off” with a vibrant growing industry reaching + – $30 billion in 2015 having started with $2 billion in 2012. And in fact these are great numbers and an argument for a phenomenon that has matured and grown in popularity, a regulatory environment that has changed dramatically and investor interest that continues to evolve and grow.

Financial concept with young pretty businesswoman with lantern in darkness

Financial concept with young pretty businesswoman with lantern in darkness

 

 

 

 

 

 

 

On the other hand, there is a school of thought that the phenomenon is so real, so good and so important that we have not seen anything yet. In fact there is a growing sentiment among industry leaders that the next generation of this phenomenon is here and the shakeout and consolidation phase is in full swing.

So who will ultimately own the industry? A lot has been written about disrupting the banking system, disruption of financial technology industry and changing the game for venture capital and angel investing. In fact, the disruption of these sectors has been predicted – but have all these predictions been just a bit too early?

So let’s take a look at some segment fiction and fact:

Fiction: Major retail banks will be too slow and cumbersome to pay attention and move into alternative finance and crowdfunding.

Fact: ING, JP Morgan Chase and Barclays are already in one segment or another of alternative finance and crowdfunding.

Fiction: Fintech is a wide open 4 Trillion disruption opportunity for new players.

Fact: Goldman Sachs has 11,000 engineers and an estimated budget of $2-3 billion dollars a year working on financial technology. An example of the drill down effect of this is Goldman is an investor in OnDeck, a marketplace lending platform that recently announced a deal with JP Morgan Chase to provide funding services to SMEs. Bank of America has a $3 billion dollar Fintech budget and JP Morgan Chase $3 billon.

My point is that alternative finance, crowdfunding and Fintech are very real and stand to change the capital markets but the Wild West opportunity allowing small startups to dream of their place in industry is facing a reality check. The phenomenon has entered a phase of consolidation and shake out.

My guess is very few will survive on their own and only those that have achieved a large critical mass will be left standing; well positioned, well managed and planned ventures will partner, merge or be acquired and go on to play large roles in the future; and  smaller ventures will begin to disappear.

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

HEADLINE NEWS

Marketplace.orgCrowdfunding for your life - MarketplaceMarketplace.org"When I took that phone call, and I learned that this was just going to completely uproot my whole life, I'd say I spent maybe 10 seconds or so only freaking out ...and more » [...]

The Sydney Morning HeraldWhy I won't bother crowdfunding again - The Sydney Morning HeraldThe Sydney Morning HeraldTheir crowdfunding bid exceeded financial expectations, but this Australian brand says it wasn't all that it cracked up to be.and more » [...]

Android Authority (blog)Crowdfunding project of the week: Flipp is a “beautiful and simple” music remoteAndroid Authority (blog)Don't know where to find your next tech gadget? Crowdfunding sites like Kickstarter and Indiegogo are good for finding alternative technology coming fro [...]

The Ethics of Crowdfunding for Lawyers: Uncharted Territory or Familiar Terrain?Justia VerdictHistorically associated primarily with tech startups, crowdfunding, or soliciting money from numerous individuals via an online platform, has in recent years become a viable option for lawyer [...]

ForbesThis $130 Million Fund Is Leading The Way In Real Estate CrowdfundingForbesWhen people think of crowdfunding, the first word that jumps to mind is Kickstarter. But crowdfunding is not limited to supporting the next card game or independent film. Crowdfunding is becoming a viable [...]

Omaha World-HeraldCrowdfunding offers easier way to ask for college cash | Money ...Omaha World-HeraldMore 529 plans, the accounts that give families a way to put away cash for college, are adding crowdfunding-like tools that make it easier for savers to ask family ...and more » [...]

The Southland TimesArrowtown musician Holly Arrowsmith crowd funding new albumThe Southland TimesHouse concerts and wedding gigs are all up for grabs as Queenstown's own TUI Award-winning queen of folk Holly Arrowsmith turns to crowdfunding for her second album due out later this [...]

CNBCWeSearchr: crowdfunding platform becoming home for alt-right causesCNBCIn less than two months, "Daily Stormer vs. SPLC Legal Defense Fund" raised more than $155000 on the WeSearchr platform.and more » [...]

TIMEA Crowdfunding Effort Launches to Commemorate Khadija Saye, Artist Killed in London InfernoHyperallergicOn Saturday, friends and supporters of the artist Khadija Saye — who died in the devastating Grenfell Tower fire in west London last week — launched a crowdfunding campaign to c [...]

Crowdfund InsiderCOUNTDOWN: 2 Weeks from Now Crowdfunding Will Change the World of Men & Women ForeverCrowdfund InsiderCrowdfunding has been much misunderstood and, let's be honest, has underperformed our best expectations. It was supposed to “democratise finance” – and much [...]

CFB Finance

Syml
Lst Val
+/- Val
+/- %

Marketwired

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

Press Release

Tim Draper

First pitch at the A's game last night with Draper University team.... fb.me/145p3wtwy

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 |