VB | Jason Best, Crowdfund Capital Advisors | Mar 16, 2015

Today, because of the JOBS Act and other regulatory change occurring around the world, we’re seeing a renewed focus on innovation in the private capital markets. The technology now being created for accredited investor online platforms and related services is creating greater transaction flow, transparency and, over time, liquidity.

But if you look at the application of these financial technologies (fintech) only in the U.S. markets, you’re going to miss where the innovation is taking place.

Equity and debt crowdfunding is already legal in several European countries, and the next 18 months could see it legalized in a number of new regions, including Malaysia, Singapore, Thailand, Taiwan, Chile, and Mexico.

View: 

• KPMG Best of Fintech innovation revealed in inaugural report

• Fintech Trends for 2015: Investing Services, Anti-Social Trading, and Digital Crowdfunding

The deal flow going on in this space is quite exciting. The primary categories of fintech companies we’re seeing are:

1. Platform technology that enables larger numbers of knowledgeable angel investors to gain access to quality, vetted deal flow from trusted sources. Examples include Asset Avenue, AngelList, OfferBoard, and SeedInvest.
2. Access to asset classes that once required a seven-figure investment. Examples include InvestX, Propellr, and SlicedInvesting.
3. Ubiquitous communication tools to more effectively enable angels/angel groups in different geographies to collaborate more effectively, such as SeedInvest.
4. Deal execution and investor relations services to enable periodic and easy communication between entrepreneurs and investors, such as BackerKit, Floship, and other companies in stealth.
5. Online reputation management and trust building services to validate identity and perform deeper background checks at better prices than have been possible before, such as Crowdcheck and EarlyIQ.
6. Real time indices, data standardization, and reporting on private offerings around the world, such as Crowdnetic and LendingRobot.
7. Online educational services to provide relevant information about private company/early stage investing to develop informed angel investors, such as Kauffman Fellows and VentureHive.
8. White space — the new categories of products and services that we don’t know that we need/can’t live without yet. (I’m always looking to hear from more entrepreneurs working in this sector…)

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The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both social and investment crowdfunding stakeholders across the country.  NCFA Canada provides education, research, leadership, support and networking opportunities to over 950+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding industry in Canada.  Learn more About Us or visit ncfacanada.org.