Crowd Valley is a platform that enables online investments, including crowd investing, peer to peer, and online securities marketplaces. They offer the technology (and support) to open up these marketplaces, the APIs for investor accreditation and other tools needed, and they have a global network of partners that can support client growth.
The company’s About section describes their mission:
“Bringing capital raising and investing truly online requires new tools. From the first announcement of an offer of shares, to investor accreditation, to the execution of deal documents, through to the delivery of money and shares, each step requires new components.
Our aim is to provide the full-suite infrastructure of products and services for this new, democratic financial market to those looking to create more effective and transparent financial models.”
Recently Crowd Valley released their Q3 2014 market report, which gives facts and figures along with insight into the latest crowdfunding trends.
The company identified four main investment models sought after on their platform: 1) equity-based crowdfunding, 2) lending (peer-to-peer, business lending, etc.), 3) Reward-based crowdfunding, and 4) combined (includes two or more of the first three models).
Equity crowdfunding has had the biggest demand in the market at 54% (down 10% from Q2 2014). Lending came second, at 26%. There has been an increase in demand for combined platforms, at 19% this quarter from only 3% in Q3 2013. Reward-based platforms only accounted for 1%, which they suggest may be due to large platforms in that sector having already secured their positions in the market.
The top assets being offered on these platforms were private companies (48%), real estate (32%), and peer-to-peer (16%) investments.
According to the company’s analysis of their client profile:
“[T]he most amount of interest in new funding portals is coming from new companies … this has been a growing trend in the five previous quarters … Private Equity funds are increasingly looking into crowdfunding options when it comes to expanding online operations. The crowdfunding model allows Private Equity funds to raise capital in a very cost-efficient manner from a wider pool of investors compared to conventional approaches, the interest in crowdfunding platforms from private equity funds has steadily risen over the past 5 quarters.”
Crowd Valley has helped clients from six different continents. They found that North America had the highest demand for their service at 50%. Europe was second at 27% and Asia third at 10%.
The top three investment models in the US now are equity (52%), lending (26%), and combined (22%). The two largest asset types in the US are real estate at 43% and private companies 35%.
Crowd Valley also found that, “in Q3 2014 the demand from traditional financial industry actors represents a significant part of the total demand for crowdfunding services.” They note that the top investment model in the financial industry is equity at a high 68%, and that real estate (48%) and private companies (43%) are the largest asset types.
You can see previous Crowd Valley market reports here.
