Top 6 Reasons Investment Platforms Fail

BY Brock Murray Chief Executive Officer, CROWDFUNDING BEAT GUEST POST.

Private capital markets are plagued with compliance requirements and operational inefficiencies, and software can eliminate many of the pain points from deal administration to investor reporting. For this reason traditional finance firms are looking at investment crowdfunding, peer to peer lending, and investor management solutions to stay relevant within this industry among the upstart Fintech (FInancial Technology) players.

In order to be successful, it’s pertinent to avoid the following pitfalls that often leave teams frustrated, sidetracked, and wondering what went wrong:

  1. Insufficient Preparation. Many firms, uneducated and uninformed, don’t prepare appropriately and assume everything will work just like it did for the industry leaders. Critically thinking through the platform requirements, validating/invalidating assumptions, and having a detailed and prioritized roadmap will create efficiencies in the long run, despite initial delays.


  1. Underestimating Resources. Moving operations online isn’t easy. Your technology is crucial for success. While there are compliant software products available that have the core functionality your firm needs, there will likely be configuration requirements or modifications. Launching the platform is 50% of the battle, having it successfully implemented and adopted by your stakeholders is the other 50%.


  1. Unrealistic Expectations. Approach your platform initiative within the realm of possibilities and on a multi-year timeline. Launching a platform isn’t a miracle solution for investor growth and capital raising. You will need to have realistic operating goals and a measurable strategy to ensure targets are achieved month over month.


  1. Eliminating Human Element. The assumption that the human element of the investment process is eliminated with an online investment platform is terribly incorrect. Online and offline processes are meant to compliment each other. The software eliminates inefficiencies, redundancies, margin for error, but it’s not meant to replace your sales, marketing, or investor relations staff. Use investor analytics to understand your investor behaviour and follow up with phone calls and emails to ensure you get the most out of each user interaction.


  1. Superficial Distractions. Stick to your core competencies and focus on business development. Too many firms are consumed by adding bells and whistles to their technology, trying to reinvent processes, or worrying about what may or may not happen 1 year out. Remember data drives decisions, not assumptions. All efforts should be defined and concentrated on the business fundamentals to generate business.


  1. Forgetting Securities are Sold NOT Bought. Investors need direction, support, and explanation. An investment platform is an extension of your process, not a replacement. If you build it, they might not come. Leverage the technology for exponential growth and operational efficiencies.



About Katipult

Katipult is cloud-based software infrastructure that allows companies to design, setup, and manage an investment crowdfunding platform.We provide unparalleled adaptability and flexibility for regulatory compliance, diverse asset structures, business model specifications, and localization requirements.




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

Oregon BusinessFor-profit giving normalized as crowdfunding maturesOregon BusinessNot so long ago, people might have thought twice about donating money to a for-profit company. But In the few years since crowdfunding debuted, thousands of companies have used online fundraising platfor [...]

The Daily Dot'Looking for Leia' creator launches crowdfunding campaign to expand into docuseriesThe Daily DotLooking for Leia creator Annalise Ophelian has created a crowdfunding campaign on Seed & Spark to raise funds to cover the new format of her project, which she sa [...]

New York PostToy tycoon leads crowdfunding effort to save Toys R Us brandNew York PostA budding campaign to buy Toys 'R' Us has hit a few bumps in the road, but its billionaire backer said he's just getting started. More On: toys “r” us · The best way to shop Toys [...]

ARL nowCrowdfunding Campaign Launched for Ballston Homicide VictimARL nowGiandoni, who would have turned 41 on Wednesday, was found dead in his home in Ballston last weekend. Police later determined his death to have been a homicide, though few details have been revealed about the cir [...]

Bitcoinist4NEW To Implement Ocular KYC solution before completing ...BitcoinistLondon, England. 4NEW announced today that it will pause the current fundraising efforts on March 27, three days earlier than planned in order to allow the team to complete implementation of their KYC/Anti- [...]

Allentown Morning CallBillionaire toy executive hopes to raise $800 million via crowdfunding to save Toys R UsAllentown Morning CallIsaac Larian, the billionaire toy executive behind Bratz, Little Tikes and L.O.L. Surprise! dolls, wants to save Toys R Us. (Christopher Lee / Bloomberg) [...]

Which of these worthy crowdfunding causes wins your vote?Jacaranda FMWhich of these two worthy candidates do you think deserves a crowdfunding dream-come-true? crowdfunding Supplied. We all know the feeling. Your goal is in sight, but you just need one last push. If you could get that [...]

Honolulu Star-AdvertiserIndie film 'Waikiki' seeks crowdfunding boostHonolulu Star-AdvertiserDanielle Zalopany, right, stars as Kea in the independent feature “Waikiki,” set for release later this year. Zalopany is a Po'okela Award-winning actress and has appeared on CB [...]

KGO-TVGroup launches crowdfunding campaign for homeless on San ...KGO-TVTake it to the Streets has launched a $50000 crowdfunding campaign to provide housing and services for homeless young adults.and more » [...]

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 |