How Text Analytics and Sentiment Analysis Will Redefine the Capital Markets"
Scott Jordan, June 10th, 2014
The dramatic growth of Crowdfunding across all platforms (Donation, Reward, Peer-to-Peer, and Equity) has been breathtaking. Headlines of Lending Club and Prosper (Peer-to-Peer Lending) crossing $5 billion in originations, Kickstarter surpassing $1 b i l l i o n i n reward-based Crowdfunding, and those who will certainly go to heaven (our donation/micro-finance based brethren, Kiva) are dominating the news wires reflecting a drastic transformation of the capital markets.structures, and Crowdfunding is providing that avenue.
Why such traction? Because Crowdfunding is about increasing data efficiencies and the capital markets are in dire need of it. Technology, long a harbinger of lowering cost structures and disrupting the status quo, has catapulted into the financial market fray via a channel called Crowdfunding. Incumbents (i.e. Venture Capital, Angel Groups) are faced with the rise of alternative funding platforms tapping directly into their traditional capital sources, Accredited Investors. In essence Limited Partners, who make up the bulk of Venture Capital funding, are pools of Accredited investors who are willing to pay high fees for access to deal flow and oversight of these investments. Increasingly, Accredited investors are seeking access to the same premium deal flow without the costs associated with “2” and “20” structures, and Crowdfunding is providing that avenue.
To read the white paper please click http://www.healthiosxchange.com/documents/2/186/mining-for-meaning-how-text-analytics-and-sentiment-analysis-will-redefine-the-capital-markets
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