Crowdfunding is becoming an important part of the asset manager’s portfolio, says Tony Greenham, Director of Economy, Enterprise and Manufacturing at the Royal Society for the encouragement of Arts, Manufactures and Commerce
Crowdfunding investors are looking for a deeper connection with the companies and projects that they fund. This makes them particularly suitable for consumer products and brands, but great ideas and inventions that capture the imagination and demonstrate a positive social impact also do well.
Unlike traditional capital raising, crowdfunding is financing, brand building, marketing and product development all rolled into one.
Institutional funds flowing into crowdfunding is a natural development and will help take this form of financing to scale.
I have always argued that disintermediation is a bit of a myth. Most people will always want help to manage their money and so peer-to-peer lending, and equity and debt crowdfunding, will become an important part of investment portfolios run by asset managers.
Good news for intermediaries, but only those who adapt fast enough.
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