Crowdfunding – Disruptive or Incremental Impact to the Financial Industry?
Consider how technology has disrupted the music industry:
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Revenues plunged from a peak of $14 billion in 1999 to $7 billion in 2012
- CD album sales just a fraction of what they were 10 years ago; Digital Albums and Singles now comprise 90% of music sales
Can the same disruption occur in the financial industry? Many industry insiders think yes given the JOBS act legislation and advancements in social media improving deal flow, eliminating geographical boundaries, lowering costs (eLegal/Payment), and speeding-up the process of raising capital (identification of Accredited Investors).
Over a short period of time Crowdfunding has evolved from concept stage to an industry that is projected to raise over $5 billion in capital in 2013. Of interest:
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Crowdfunding companies are securing Venture Capital backing following proof of concept/exceeding revenue projections including CircleUp (raised $7.5 million in a Series A funding round led by Union Square Ventures and joined by Google Ventures, Maveron) and Fundersclub which raised the largest Seed Round in Y Combinator history ($6 million).
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Regulatory support of Crowdfunding platforms including FundersClub’s “No-Action" letter from the SEC regarding their online investment funds.
If you are interested in reading our Crowdfunding "White" paper, "How Crowdfunding will be disruptive to the financial industry as iTunes was to Music," please click on the link below:
If you would like to join my Linkedin Group to learn more about pivotal Crowdfunding developments, please click on the link, http://www.linkedin.com/groups/SJA-Healthcare-Investment-Banking-Business-4115491/about?trk=anet_ug_grppro
Also visit my website at, http://sjordanassociates.com/