Crowdfunding Aggregators Help Investors Gain Efficiency, Convenience

By ,  CrowdFundBeat contributing Guest Editor,  Founder and Chief Executive Officer of American Homeowner Preservation LLC

Crowdfunding is predicted to account for more funding than venture capital in 2016. This relatively new tool is rapidly emerging as a powerful capital-raising option for startups, small businesses, and real estate operators. Equity crowdfunding, or investment crowdfunding, empowers investors to fund ventures in return for equity or debt. But with countless deals available on a wide range of online platforms, would-be investors may not know where to look for deals, or may feel overwhelmed by the abundance of choices. In order to help potential investors navigate this sea of opportunities, companies are rising up to help cut through the noise.

Calling itself a “private investment aggregator,” Access Invest is a platform that organizes and personalizes deals. Using a mobile app, users are able to efficiently swipe through investment options. CEO and Co-Founder Aaron McDaniel explained that “there are thousands of online investment portals and it’s hard to keep track of them. To help people curate their own deals, Access Invest aggregates investment opportunities all in one place based on the interests of the investor.”

Keeping up with recent legislation, Access Invest is inclusive to non-accredited investors. The enactment of Title III (Regulation Crowdfunding) and Title IV (Regulation A+) of the JOBS Act now allow non-accredited investors to participate in investment crowdfunding, expanding choices beyond traditional options such as stocks, bonds, and mutual funds. “We have a really good mix of accredited and non-accredited, and that is because there is a growing number of Title III and A+ deals,” said McDaniel. “We learn if the user is accredited or not, and to the non-accredited investor, we only show deals that they are qualified for. We are able to appeal to everybody.”

While Access Invest aggregates deals from various asset classes, other platforms are more specialized. Connected Investors features only real estate-related crowdfunding opportunities. The company’s chief technology officer Marty Coyne explained that “Connected Investors is an online community and marketplace. There are different components of our website: one helps investment property buyers find financing from crowdfunding portals and other sources, another lists available investment properties, and then there is our ‘aggregated crowdfunding marketplace.’ If you go to individual crowdfunding sites, you get to see all the properties and deals that one site has. If you go to our aggregated crowdfunding marketplace, you see deals from multiple sites.”

Property.com also aggregates real-estate opportunities, sourcing commercial investment offerings from over 100 crowdfunding platforms and presenting them in one convenient marketplace. Like Connected Investors, Property.com also provides funding options to property buyers. They aim to “bring a fragmented industry into the 21st century.”

In 2014, CrowdRabbit emerged as an early leader in the crowdfunding aggregation scene. CEO Robert Finlay explained, “As crowdfunding becomes more and more popular, we’ve seen the need for better tools for all parties involved, including investors, project creators and others, who frequently take to the Internet to source or promote investment opportunities. We knew we wanted to create a solution that would bridge the gap between investors and entrepreneurs. CrowdRabbit accomplishes this goal.” Despite the platform’s wide audience and media attention, CrowdRabbit fizzled out as quickly as it rose to acclaim. The site is now defunct, leaving one less aggregator in an already small industry.

Coyne attributed CrowdRabbit’s dissolution largely to their targeted revenue source. “They went out because their business model was dependent upon their aggregated crowdfunding marketplace earning money.” To generate revenue with Connected Investors, Coyne takes a different approach. “We don’t charge anybody for the aggregated crowdfunding marketplace,” he said. “We don’t charge a listing fee, and we don’t charge money when deals get funded. It’s purely a free service. We earn revenue through other services on the site.”

With a plethora of opportunities being offered on an expanding number of investment crowdfunding platforms, aggregators enhance efficiency and convenience for investors interested in offerings from multiple sources. Access Invest, Connected Investors and Property.com are pioneering the aggregation model and, with their help, crowdfunding may realize World Bank’s global forecast of up to $96 Billion by 2020. “I think its exploding right before our eyes,” said Coyne. “I think this is a revolution that will not be turned away.”

This article was also published at : http://www.huffingtonpost.com/jorge-newbery/crowdfunding-aggregators_b_11405402.html

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

HEADLINE NEWS

Daily MailNick Clegg crowdfunding former Deputy PM appeals donations ...Daily MailLib Dem MP Nick Cleg is 'crowdfunding' to help bankroll the publication of thousands of party leaflets for canvassing ahead of the re-election bid in Sheffield ...and more » [...]

OregonLive.comCrowdfunding efforts for Portland stabbing victims top $700000 in less than 48 hoursOregonLive.comThe crowdfunding campaigns sprang up soon after news reports spread of the attack. Two are designed to help all three families with medical costs and to alleviate any financ [...]

Android Authority (blog)Crowdfunding project of the week: BIKI is an underwater drone that ...Android Authority (blog)Drones are fun, but they can only move through air. We know plenty of you prefer to go underwater. If so, BIKI is for you.and more » [...]

Hall alone in vote against rape kit crowdfundingRockwall County Herald Banner“Rape kit testing is far too important to rely on an undependable funding source like crowdfunding. This is a core function of government and as such it should be funded by government. Victims deserve to know [...]

Virginia Tech launches its own crowdfunding site to reach new generation of donorsRoanoke TimesOne of the first four pilot projects that went live on Jump, Tech's crowdfunding website, lets users pay for as little as one local child to attend educational programming by the Moss A [...]

New York MagazineFacebook Rolls Out Crowdfunding to EveryoneNew York MagazineDepending on your perspective, the rise in popularity of crowdfunding is either a fantastic new way that the internet lets strangers help each other out, or emblematic of the decay of institutional safeguards [...]

Youris.comCrowdfunding boosts green powerYouris.comWith state subsidies falling, crowdfunding platforms are increasingly stepping in to help make green power projects a reality. For individual investors, injecting anything from a few euros to hundreds of thousands, they are a tangiabl [...]

Tech City NewsWhy are more and more tech firms turning to crowdfunding?Tech City NewsWhen Facebook bought virtual reality firm Oculus VR for £2bn (£1.3m) in 2014, the crowdfunding world looked on with amazement. Oculus, founded in California in 2012, had raised its crucial first $2m o [...]

Crowdfund InsiderResearch on Risk Shows Crowdfunding Has Significant Fraud Immunity: Here's WhyCrowdfund InsiderIt may be counterintuitive but the research has been done and the results are now in – and it's as we've been saying for almost five years. Fraud in crowdfund [...]

Finance MagnatesEthereum Alternative Æternity Starts Phase Two of Crowdfunding CampaignFinance MagnatesÆternity's blockchain is built from scratch with most of the transactions done off-chain for speed and efficiency. Avi Mizrahi | News (CryptoCurrency) | Monday, 29/05/2017|14:55 [...]

CFB Finance

Marketwired

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

Press Release

CrowdFund Beat Media

Teacher turns to crowdfunding to buy greenhouse for Nunavut students upflow.co/l/bqoI pic.twitter.com/chHa3MnCfT

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 |