Hype or Hit? The future of Crowdfunding
Tomorrow night in London the future of equity crowdfunding is being debated. Equity what? you may ask. Equity crowdfunding, and if you’ve not heard of it you soon will. The United Kingdom has come to be at the centre of the alternative finance revolution and equity crowdfunding is the jewel in the crown that is growing at over 100% a year and is helping hundreds of young ventures get the funding they need to be the next Unicorn (Billion dollar company).
For those who have never heard of equity crowdfunding don’t worry, you’re actually part of the majority though this will change in the next year or two. Effectively through equity crowdfunding investors are able to buy shares in private early stage ventures in hope of the company growing and ultimately exiting and returning a nice profit to the investor. The companies range from little more than an idea, up to profitable businesses that are looking for finance to help them get to the exit stage.
No beating around the bush, these are risky businesses and most investors could lose all of their investment. Depending who you ask and at what stage of investment you invest in, somewhere between 60–80% of the businesses will fail. Experienced angel investors tend to build a portfolio of these investments because of this and in hopes that 1 of the X companies that they invest in go on to return more than enough to cover all of their losses. The dream of course being to invest in the next facebook where early investors could possibly retire now. Don’t be fooled though, this is the extreme exception, not the rule.
If the thought of investing in an early stage venture appeals, equity crowdfunding may be the portal for you to do so. And, like with any investment, you should understand all of the nuts and bolts. At SyndicateRoom we’re building a hub for all those interested to learn the ropes. We’re calling it the Academy and you can access it at www.syndicateroom.com/learn
Further, if you are interested in attending a live event that debates the future of equity crowdfunding we welcome you to join us tomorrow night at our event https://www.eventbrite.co.uk/e/hype-or-hit-whats-next-for-crowdfunding-tickets-16323852081
I’ll be writing much more on the subject so you’ll hear from me soon.