Equity Crowdfunding Comes of Age – Raising More Money and Building Bigger Companies Faster.
When it comes to equity crowdfunding what a difference a few months can make. Back in December when Bitcoin was at $20,000 and investors in cryptocurrency all together were making tons of money on an hourly and daily basis, equity crowdfunding seemed to be the forgotten step child. The cryptocoin scene was like a Wild, Wild West gold rush and equity crowdfunding was a ghost town.
Then Bitcoin crashed along with lots of other cryptocoins. ICO and Altcoin scams robbed investors of billions the world over and the SEC starting clamping down on ICOs and Pre-ICOs and even established cryptocoins. Enhanced oversight coupled with investor skepticism over cryptocoins turned the tide back to equity crowdfunding as interest in cryptocurrency waned.
Fast forward to June 2018. Equity crowdfunding campaigns are popping up everywhere and they raising larger amounts of money than ever before. Interestingly, many campaigns have a blockchain basis and a some of them are even issuing pre-ICO coins as a bonus of becoming an equity crowdfunding investor. There’s even an equity crowdfunding campaign raising funds for cryptocurrency investing on autopilot.
In other words, equity crowdfunding / blockchain / ICO marriages are happening like crazy. Who could’ve seen this coming? I admit I didn’t and I am considered among “the smartest people in the room” when it comes to crowdfunding. Yet if you stop and think about it, this evolution of equity crowdfunding makes perfect sense. It could be considered brilliant, even.
So why is equity crowdfunding enjoying a renaissance? Safety. With compliance to SEC regulations, investors are assured they are investing in a real business as opposed to a potential ICO scam. While that doesn’t guarantee a return on investment and does nothing to eliminate the normal risks associated with any investment, it makes equity crowdfunding a level playing field in the investment world. Now with ICOs and other blockchain propositions on offer under the umbrella of SEC compliance, equity crowdfunding comes of age and puts its strengths on full display.