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

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

The VergeNeill Blomkamp's Firebase crowdfunding campaign comes to an ...The VergeJust over a week after announcing its crowdfunding campaign to fund a sequel to its short concept film Firebase, Neill Blomkamp's Oats Studios has pulled the plug on the project, and says that i [...]

ForbesNeed To Fund Your Health Idea? How About Crowdfunding? - ForbesForbesGot an idea that you think will change the face of health or public health? Don't know where to go to get funding to launch the idea? Worried that you won't be able to convince one person or one organ [...]

Billy PennMore than in other cities, Philly families resort to crowdfunding for funeral costsBilly PennOf the top 45 crowdfunding campaigns in Philadelphia currently listed on the site, 25 are looking for help paying for memorials. GoFundMe recognizes the need, and even has a page ded [...]

Stuff.co.nzJeremy Elwood and Michele A'Court: Crowdfunding is like buskingStuff.co.nzStormy Daniels is currently raising US$75,000 a week through crowdfunding to cover her legal expenses against Donald Trump. OPINION: Husband-and-wife comedians and commentators Jeremy Elwood and [...]

WDJTWoman accused of stealing from crowdfunding account she set up for grieving familyWDJTMINNEAPOLIS (WCCO) — A 49-year-old Minnesota woman faces charges for allegedly stealing money from a crowdfunding account she set up for a family who suffered a loss, according to the Hennepin Co [...]

Joplin Globe'Grow with us': Empire Market launches crowdfunding effort ahead of openingJoplin GlobeTo help provide those amenities, Downtown Joplin has begun a crowdfunding effort ahead of the market's Saturday opening day. DJA was the only Joplin-based organization sel [...]

FierceBiotechCNS Pharma turns to crowdfunding to advance glioblastoma drugFierceBiotechCNS Pharma has launched a fundraising drive for a phase 2 study of a drug for glioblastoma, the form of brain cancer that has claimed the lives of Senator Ted Kennedy and Vice President Joe Biden [...]

Popular ScienceAnker's smart home brand is crowdfunding a new security systemPopular ScienceWe don't typically post about Kickstarter campaigns, but Eufy—like their parent company Anker—makes excellent products that are more reliable and interesting than the average crowdfun [...]

Crowdfund InsiderPremium Cider Brand Cranes Launches Second Equity Crowdfunding Campaign on SeedrsCrowdfund InsiderCranes, a UK-based premium cranberry cider brand, has launched its second equity crowdfunding campaign on Seedrs. The debut of the latest funding round comes less than tw [...]

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 |