MICROFINANCE OPINION: Crowdfunding May Be Next Frontier for Microenterprise Funding

With institutional investors looking to amend their charters to allow private share purchases, I believe that the private company marketplace will start showing significant momentum in the first half of 2013. I foresee the rapid emergence of private shares desks within conventional financial firms.

Internationally we are seeing strong interest from Europe, which we believe will result in the materialization of significant numbers of private shares desks globally. We will have several European organizations discussing liquidity solutions and other issues at our upcoming events. We also predict the global expansion of crowdfunding platforms. Representatives of Grow VC, a global, transparent, community-based platform dedicated to meeting the needs of entrepreneurs, will discuss the international growth of crowdfunding at our preeminent event, The SoHo Loft Capital Creation and Crowdfunding Conference, in New York City on January 23.

Crowdfunding has already added hundreds of millions of US dollars in capital to early-stage start-up companies. European banks and institutions are turning to US accelerators and angel networks to run boot camps for their venture divisions. We foresee this becoming a new growth sector for US investor networks, with much of West Central Europe’s legislation and infrastracture having tremendous upside to support entrepreneurship.

– David Drake, Partner, LDJ Capital, New York, NY, USA

MicroCapital readers are invited to use the code “TheSohoLoftMC” to receive a discount of 10 percent on selected events by The SoHo Loft, including the The SoHo Loft Capital Creation and Crowdfunding Conference to be held in New York on January 23.

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