Crowdfunding is a rapidly growing industry. In 2010, the
global online crowdfunding market was valued at roughly $880 million, led by a
relatively small audience of early adopters. Just four years later,
crowdfunding platforms accounted for approximately $16 billion in total
investments, and that figure is expected to exceed $34 billion by the end of
this year. To better illustrate the scale of this growth, consider the venture
capitalism industry, which has traditionally served as the ‘go-to’ source of
capital for startups and other pre-revenue companies.
Currently, the VC industry invests an average of $30 billion
each year, led by global firms such as Fortress Investment Group (NYSE: FIG),
American Capital (NASDAQ: ACAS) and Apollo Investment Corp. (NASDAQ: AINV), but
industry growth is expected to remain relatively flat in the coming years. In
other words, the crowdfunding industry is on track to account for more funding
than the VC industry as early as next year.
One of the primary benefits of crowdfunding is its
versatility. Companies such as Kickstarter and GoFundMe have captured market
share through the implementation of a simple rewards-based system. Using this
model, investors gain access to varying levels of rewards corresponding to the
amount they pledge to the business or project. However, the Jumpstart Our
Business Startups (JOBS) Act – which was signed into law by President Obama in
April 2012 – set the stage for a crowdfunding model based on a more traditional
investment incentive: equity.
Equity crowdfunding is just one of the many investment
models offered by Symbid Corporation (OTCQB: SBID) through its proprietary
investment platform, The Funding Network™. Founded in 2011, Symbid was one of
the first companies to identify the rising need for data-driven SME finance and
invest in the development of advanced investing, monitoring and data tools.
Leveraging this early mover advantage, Symbid launched The Funding Network in
March 2015 in order to give entrepreneurs direct access to all forms of
financing while offering investors complete transparency on the potential risks
and returns of their portfolios.
In the third quarter of 2015, Symbid demonstrated the
marketability of its platform by recording a 30 percent year-over-year increase
in total revenues. In its first six months of operation, The Funding Network
has seen a total transactional volume of nearly $400 million. In July, Symbid
successfully added roughly 2,000 new investors to its crowdfunding community
and recorded its first success fees stemming from the introduction of its
innovative loan crowdfunding product, effectively paving the way for additional
growth in the months to come.
“The diversified product portfolio of The Funding Network
has delivered promising results in the first six months since its launch in
March and is creating real value for investors and entrepreneurs,” Korstiaan
Zandvliet, co-founder and chief executive officer of Symbid, stated in a news
release. “Clearly there is huge potential to further commercialize our
transaction volume. The consistent growth in revenue we’ve been seeing in 2015
gives us the foundation to do just that while we continue to innovate at the
forefront of online funding.”
For more information, visit www.symbid.com
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