________________________________________________________
CROWDFUNDING- ASSIGNMENT I – HEDGEFUND INC.
FROM: BRIAN O'REILLY – X17140722
________________________________________________________
CONTENTS PAGE NO.
1. EXECUTIVE SUMMARY 2
2. INVESTMENT ANALYSIS – KEY ISSUES 6
3. RECOMMENDATION 11
APPENDICES 14 – 18
" APPENDIX I – VOLUME ANALYSIS
" APPENDIX II – GROWTH IN MARKET
" APPENDIX III – WORLDWIDE DISTRIBUTION
" APPENDIX IV – KEY PLAYERS
" APPENDIX IV -LEADING COUNTRIES
1. EXECUTIVE SUMMARY
Crowdfunding facilitates the raising of capital from a number of alternative funding sources to be used in a wide variety of acceptable means. The model provides target companies with internet based capital markets finance. The model connects a target company with the investor/loan provider through a market based internet Crowdfunding platform.
Below is a graphical summary of how the operators in the market are segregated – Equity based, Reward based, Lending based and Donation based. The key models that are appropriate to Hedge Fund Inc. ('HFI') are the Equity and Lending based propositions, on account of their financial return and investment horizon objectives.
`
" LENDING BASED MODEL – is largely an evolution of the peer-to-peer model of lending, pioneered by firms such as Lendingclub (US) and Zopa (UK). Projects or businesses seeking debt apply through a platform uploading their pitch, with members of the crowd taking small chunks of the overall loan. Others operate more as an investment, where interest rates are decided either by those seeking the loan or using a market for loan parts, such as that used by UK platform FundingCircle. Linked Finance provide P2P lending in Ireland is one of the largest players in the Irish market.
One key benefit of P2P lending platforms over Equity platforms is that cash flow is more predictable and regular. Interest rates can be higher depending on the risk profile of the company seeking the loan. Zopa offer investors P2P loan rates to investors of between 3.7%-4-5% depending on risk profile of the Borrower. Historical average rates for loans in Lending Club start at 7.13% and rise to 24.31% for high risk category F&G loans. Rates offered by Linked Finance(Ireland) are at levels of c10% on an average basis.
LENDING CLUB AVERAGE RATE ANALYSIS – DECEMBER 2017
LOSS RATES – LENDING CLUB – 2017
" INVESTMENT (EQUITY) MODEL – is the application of crowdfunding to making an investment in a business or project. Given that Equity crowdfunding typically involves an investment in a company, it is often subject to securities and financial regulation. Due to the nature of the investment (equity and/or debt investment characteristics), it can often be a longer-term investment which may or may not be aligned to HFI's investment horizon. Equity funding platforms are more prevalent in the US where the market in more developed, for example, AngelList, EquityNet, SeedInvest and FundersClub. Some European platforms have been pioneers of the equity crowdfunding model as well, allowing investors to take a small stake in an unlisted or private business through crowdfunding. The most popular EU platforms offering this model are CrowdCube and Seedrs in the UK and Symbid in the Netherlands. An upcoming ICO platform that maybe of interest is being launched in the coming weeks, called EQUI . EQUI bridges the crypto market opportunity with the traditional venture capital market, all facilitated on the Blockchain platform.
Deals in Crowdfunding typically follow a 'ticket size' which is influenced by where in the funding cycle the available investment is placed. Investments should be considered in the construct of portfolio management and diversification across platforms, industries and target investee companies. Chart 1 below summarizes the key $ investment breaks associated with crowdfunding and more traditional investment ticket sizes for SME companies and Institutional Capital investment.
Given the relatively low scale in the Irish market of crowd funding, there are a limited number of investment opportunities in Ireland that would be attractive to HFI at this time. More details are contained in Section 3.
Section 2 sets out the key issues to consider, while section 3 sets out the overall investment recommendation.
Appendix III shows the geographical prominence of crowd funding in the US and UK. Appendix IV sets out a matrix of key Investment segments together with 'key players' in each segment. Appendix I ,II & V sets out some of the trends in the crowdfunding market space at a global and regional level.
2. INVESTMENT ANALYSIS
2.1 CONTEXT AND PROFILE
2.1.1 WHAT IS CROWDFUNDING AND HOW IS IT DIFFERENT?
Crowdfunding is a method of raising capital through the collective effort of investors. This approach taps into the collective efforts of a large pool of individuals-primarily online via social media and crowdfunding platforms-and leverages their networks for greater reach and exposure. It gives the entrepreneur a single platform to build, showcase, and share their pitch resources.
2.1.2 WHAT IS THE STATE OF CROWDFUNDING?
The current state of crowdfunding, (Source: CrowdFundingHub), shows that in almost all European countries volumes are rising quickly, but large differences between countries remain. "We are happy to see that more countries are now adopting legislations for the industry, and we expect crowdfunding volumes to increase even further in the coming years," (Ronald Kleverlaan, CEO of CrowdfundingHub). The UK has the most mature alternative finance industry when it comes to volume as well as the ecosystem. More than 10% of businesses are funded through alternative investment and this percentage is growing. Equity-based crowdfunding for SMEs has potential in Ireland, but its scale is of limited value at this time.
Crowdfunding platforms particular to the Irish market include: FundIt, SeedUps, iCrowdFund and MoneyCrowd.
Key Metrics on Crowd Funding Europe
(Source: Crowd Funding Hub Research)
" 95,749 Euros is borrowed on average
" 350,000 Campaigns funded across Europe
" 255 Crowdfunding platforms in Europe
" 2,597 million transaction volume in European crowdfunding
There have been a number equity crowdfunding investments that have already paid off for investors. The first ever exit of an equity crowdfunded company, Republic Project, saw the company acquired for $1.4million by Digital Generation just two years after the start-up raised $350K on the Micro ventures platform, representing a 300% return for early investors in less than two years. Other equity crowdfunding returns from start-ups launched in Europe have paid off with between 10- and 20-times investors' money. Equity crowdfunding returns should be comparable to what's been seen in angel investing. A study by Willamette University shows that about 35% of start-up investments return between one- and five-times the original investment while one-in-ten will provide returns of 10- to 30-times and more.
Crowdfunding returns help to boost HFI's overall portfolio and assists in spreading investment risk away from stock market crashes and overall market volatility. Appendix IV sets out the Top 10 US Crowdfunding sites.
One of the next biggest potential opportunities to equity crowdfunding is real estate investment. Real estate crowdfunding has been successful for developers and is providing double-digit returns for investors. Real estate developers and other investors offer their projects on real estate crowdfunding sites. The platforms have analysts that verify the properties and the developer's history with only about 5% of submitted deals making it in front of investors. Investors can then pick which deals in which they want to invest, subject to a de-minimis $ level per deal. Crowdfunding real estate allows you to diversify portfolio risk with deals in different property types and across countries.
2.2 KEY ISSUES
In deciding on the optimum investment mix, HFI should consider the following key factors.
" INTEREST RATES – the current interest rate cycle is low at present but has an upward trajectory. As rates increase, this will most likely impact the level of competition in the market as more traditional loan and equity players wish to enter the market and get a slice of the market. In addition, more traditional investment products may become more attractive, given the correction from low interest rate levels. More competition may lead to downward pressure on P2P and invoice discounting loan rates.
" INSTITUTIONAL PARTICIPATION – as the Crowdfunding market develops further, more Institutional capital will be attracted to the market. It will also allow banks, mutual funds and Fintech companies to broaden their distribution channels through possible equity stakes in platform operators so as to take synthetic exposure to companies and P2P loan seekers. It will also allow Institutional capital to be well placed if a Platform is sold or an IPO is carried out (as is what happened for Lending Club in the US).
" REGULATORY POSTURE -Unless an online crowdfunding platform offers related services that are regulated such as, for example, payment services or MiFID investment services (in which case, it would need authorisation from a Central Bank) neither the relationship between the investor and the business, nor the online crowdfunding platform, is regulated. There is no legislation or regulations in Ireland specifically dealing with crowdfunding. Consumer protection legislation, and financial services legislation generally was developed before crowdfunding developed into a key source of finance. As a result, this legislation of itself is unlikely to adequately regulate the sector, but legislation such as MiFID, the Payment Services Directive, AIFMD and the Prospectus Directive could provide the necessary framework.
Source: Ireland :Department of Finance White Paper (January 2018)
The European Banking Authority (EBA) has concluded that regulatory convergence in the area of crowdfunding is desirable, using existing financial services legislation (notably the Payment Services Directive) as the starting point. On equity crowdfunding, the US has set up a regulatory regime to reduce the compliance requirements of platform operators and securities issuers, while protecting investors at the same time. Legislation was enacted to support start-ups. US Investors in crowdfunding need to complete a questionnaire, acknowledging the potential risks in such investment. They also have an unconditional right to withdraw from the investment for any reason until 48 hours prior to the deadline specified in the issuer's offering materials.
Laws are bespoke and not harmonised regionally or globally, reflecting the desire of Central Banks not to stifle innovation in the Fintech and Crowdfunding space while also balancing investor protection. As the market develops, more co-ordinated regulation will be evident so as to control the overall scale and conduct of the market. This may increase costs and dilute returns to investors.
" DEAL FLOW & DUE DILIGENCE – To ensure a sustainable investment and operating model for the industry and crowdfunding platforms, having an available supply, in sufficient quantities of deals that are capable of passing acceptable investment analysis will be important.
" RISK ATTITUDE -The type of business that is chosen should be determined by HFI's attitude to risk. Businesses that trade in real assets have a track record of performance and an established position in the market. However, they are less likely to produce the returns of a riskier, early-stage digital business. If the business has physical assets such as property, these can be sold, which may provide some compensation for investors.
" PORTFOLIO MANAGEMENT – Most start-ups fail altogether with a failure rate of around 40%. This means it's even more important that HFI have investments in a wide range of areas and business types.
" TAX RELIEF – Consideration should be given to local taxes, cross border and US taxes regarding any redemptions or return of funds to the US. Appropriate structuring should be facilitated between the $investment of HFI funds to the platforms and the underlying target company or P2P counterparty.
" EXIT MECHANISM – Crowdfunding models typically have higher yield returns compared to traditional finance models. However, the risk is higher with less protections. P2P lending and factoring/invoice discounting have more predictable cash flows and offer attractive yields depending on which credit quality is accepted. Equity based crowdfunding investments are unlikely to see returns within the first two – year period.
3. INVESTMENT ANALYSIS
Alternative investment opportunities allow, at this time, for a more targeted arbitrage of returns versus more traditional investments.
RECOMMENDATION
Considering the risks and the stage in the maturity life cycle of the industry, I would recommend that the total available investment is allocated on a 'portfolio basis' so as to diversify risk.
" TOTAL INVESTMENT – $20M – 3-year horizon.
" JURISDICTIONAL ALLOCATION – Recommend that $10M is allocated to US Crowdfunding (biggest market), $7.5M (Sterling equivalent) is allocated to UK investments (next biggest) with $2.5M (Euro equivalent) is invested in Euroland countries (including Ireland).
" CURRENCY OF INVESTMENT – USD, GBP and Euros, with hedging of FX done at a HFI level.
" INVESTMENT ALLOCATION- Four key investment channels and % investment recommended.
(1) Equity Stake in Platform Companies (20%) – Strategic Capital Markets play ($4M).
Emphasis on mature players in the market, who have recently turned from break even to profit making. 8 x $500k Equity investments in well run profitable platform in Euroland, UK and US in order to get synthetic exposure to wide variety of target companies and loan credits. The selection of platform operators for investment is subject to discussion and further due diligence, but I would recommend 40% P2P platforms (Funding Club, ZOPA), 30% in equity- based platforms (for example, Fundable, Crowdfunder, CircleUp and Angel List) and 30% Invoice discounting/factoring platforms (Invoice Fair).
(2) Lending based Platforms (50%) – P2P loans (35%) and Invoice discounting (15%) ($10M).
Investing is recommended in companies on a yield (risk/reward) priority basis, with lockbox accounts for monthly payments and disbursements. Again, a good distribution of investment targets across the US, UK, and Europe. Emphasis on 'well screened' credits across a wide mix of industries and repeat customers, where possible. Initial target P2P platforms to access lending opportunities, are:
LENDING CLUB
PROSPER
UP START
(3) Equity Crowdfunding (20%) – a good and varied distribution of investment targets ($4M).
Emphasis on non-traditional company structures/investments – for example, Technology, Fintech, Regtech & big data companies. See below Fintech ecosystem for more details on potential targets.
(4) Real Estate Fund/Crowd Funding – to position for management of distressed real estate bank loans/companies ($2M).
Engage in 'active' management strategy – RealtyShares, PeerStreet, Equity Multiple & Real Crowd are Real Estate platforms to consider, based on indicative average returns below.
APPENDIX I – VOLUME ANALYSIS
APPENDIX II – GROWTH
APPENDIX III – WORLDWIDE DISTRIBUTION
APPENDIX IV – KEY PLAYERS – UK MARKET
________________________________________________________
CROWDFUNDING- ASSIGNMENT I – HEDGEFUND INC.
FROM: BRIAN O'REILLY – X17140722
________________________________________________________
CONTENTS PAGE NO.
1. EXECUTIVE SUMMARY 2
2. INVESTMENT ANALYSIS – KEY ISSUES 6
3. RECOMMENDATION 11
APPENDICES 14 – 18
" APPENDIX I – VOLUME ANALYSIS
" APPENDIX II – GROWTH IN MARKET
" APPENDIX III – WORLDWIDE DISTRIBUTION
" APPENDIX IV – KEY PLAYERS
" APPENDIX IV -LEADING COUNTRIES
1. EXECUTIVE SUMMARY
Crowdfunding facilitates the raising of capital from a number of alternative funding sources to be used in a wide variety of acceptable means. The model provides target companies with internet based capital markets finance. The model connects a target company with the investor/loan provider through a market based internet Crowdfunding platform.
Below is a graphical summary of how the operators in the market are segregated – Equity based, Reward based, Lending based and Donation based. The key models that are appropriate to Hedge Fund Inc. ('HFI') are the Equity and Lending based propositions, on account of their financial return and investment horizon objectives.
`
" LENDING BASED MODEL – is largely an evolution of the peer-to-peer model of lending, pioneered by firms such as Lendingclub (US) and Zopa (UK). Projects or businesses seeking debt apply through a platform uploading their pitch, with members of the crowd taking small chunks of the overall loan. Others operate more as an investment, where interest rates are decided either by those seeking the loan or using a market for loan parts, such as that used by UK platform FundingCircle. Linked Finance provide P2P lending in Ireland is one of the largest players in the Irish market.
One key benefit of P2P lending platforms over Equity platforms is that cash flow is more predictable and regular. Interest rates can be higher depending on the risk profile of the company seeking the loan. Zopa offer investors P2P loan rates to investors of between 3.7%-4-5% depending on risk profile of the Borrower. Historical average rates for loans in Lending Club start at 7.13% and rise to 24.31% for high risk category F&G loans. Rates offered by Linked Finance(Ireland) are at levels of c10% on an average basis.
LENDING CLUB AVERAGE RATE ANALYSIS – DECEMBER 2017
LOSS RATES – LENDING CLUB – 2017
" INVESTMENT (EQUITY) MODEL – is the application of crowdfunding to making an investment in a business or project. Given that Equity crowdfunding typically involves an investment in a company, it is often subject to securities and financial regulation. Due to the nature of the investment (equity and/or debt investment characteristics), it can often be a longer-term investment which may or may not be aligned to HFI's investment horizon. Equity funding platforms are more prevalent in the US where the market in more developed, for example, AngelList, EquityNet, SeedInvest and FundersClub. Some European platforms have been pioneers of the equity crowdfunding model as well, allowing investors to take a small stake in an unlisted or private business through crowdfunding. The most popular EU platforms offering this model are CrowdCube and Seedrs in the UK and Symbid in the Netherlands. An upcoming ICO platform that maybe of interest is being launched in the coming weeks, called EQUI . EQUI bridges the crypto market opportunity with the traditional venture capital market, all facilitated on the Blockchain platform.
Deals in Crowdfunding typically follow a 'ticket size' which is influenced by where in the funding cycle the available investment is placed. Investments should be considered in the construct of portfolio management and diversification across platforms, industries and target investee companies. Chart 1 below summarizes the key $ investment breaks associated with crowdfunding and more traditional investment ticket sizes for SME companies and Institutional Capital investment.
Given the relatively low scale in the Irish market of crowd funding, there are a limited number of investment opportunities in Ireland that would be attractive to HFI at this time. More details are contained in Section 3.
Section 2 sets out the key issues to consider, while section 3 sets out the overall investment recommendation.
Appendix III shows the geographical prominence of crowd funding in the US and UK. Appendix IV sets out a matrix of key Investment segments together with 'key players' in each segment. Appendix I ,II & V sets out some of the trends in the crowdfunding market space at a global and regional level.
2. INVESTMENT ANALYSIS
2.1 CONTEXT AND PROFILE
2.1.1 WHAT IS CROWDFUNDING AND HOW IS IT DIFFERENT?
Crowdfunding is a method of raising capital through the collective effort of investors. This approach taps into the collective efforts of a large pool of individuals-primarily online via social media and crowdfunding platforms-and leverages their networks for greater reach and exposure. It gives the entrepreneur a single platform to build, showcase, and share their pitch resources.
2.1.2 WHAT IS THE STATE OF CROWDFUNDING?
The current state of crowdfunding, (Source: CrowdFundingHub), shows that in almost all European countries volumes are rising quickly, but large differences between countries remain. "We are happy to see that more countries are now adopting legislations for the industry, and we expect crowdfunding volumes to increase even further in the coming years," (Ronald Kleverlaan, CEO of CrowdfundingHub). The UK has the most mature alternative finance industry when it comes to volume as well as the ecosystem. More than 10% of businesses are funded through alternative investment and this percentage is growing. Equity-based crowdfunding for SMEs has potential in Ireland, but its scale is of limited value at this time.
Crowdfunding platforms particular to the Irish market include: FundIt, SeedUps, iCrowdFund and MoneyCrowd.
Key Metrics on Crowd Funding Europe
(Source: Crowd Funding Hub Research)
" 95,749 Euros is borrowed on average
" 350,000 Campaigns funded across Europe
" 255 Crowdfunding platforms in Europe
" 2,597 million transaction volume in European crowdfunding
There have been a number equity crowdfunding investments that have already paid off for investors. The first ever exit of an equity crowdfunded company, Republic Project, saw the company acquired for $1.4million by Digital Generation just two years after the start-up raised $350K on the Micro ventures platform, representing a 300% return for early investors in less than two years. Other equity crowdfunding returns from start-ups launched in Europe have paid off with between 10- and 20-times investors' money. Equity crowdfunding returns should be comparable to what's been seen in angel investing. A study by Willamette University shows that about 35% of start-up investments return between one- and five-times the original investment while one-in-ten will provide returns of 10- to 30-times and more.
Crowdfunding returns help to boost HFI's overall portfolio and assists in spreading investment risk away from stock market crashes and overall market volatility. Appendix IV sets out the Top 10 US Crowdfunding sites.
One of the next biggest potential opportunities to equity crowdfunding is real estate investment. Real estate crowdfunding has been successful for developers and is providing double-digit returns for investors. Real estate developers and other investors offer their projects on real estate crowdfunding sites. The platforms have analysts that verify the properties and the developer's history with only about 5% of submitted deals making it in front of investors. Investors can then pick which deals in which they want to invest, subject to a de-minimis $ level per deal. Crowdfunding real estate allows you to diversify portfolio risk with deals in different property types and across countries.
2.2 KEY ISSUES
In deciding on the optimum investment mix, HFI should consider the following key factors.
" INTEREST RATES – the current interest rate cycle is low at present but has an upward trajectory. As rates increase, this will most likely impact the level of competition in the market as more traditional loan and equity players wish to enter the market and get a slice of the market. In addition, more traditional investment products may become more attractive, given the correction from low interest rate levels. More competition may lead to downward pressure on P2P and invoice discounting loan rates.
" INSTITUTIONAL PARTICIPATION – as the Crowdfunding market develops further, more Institutional capital will be attracted to the market. It will also allow banks, mutual funds and Fintech companies to broaden their distribution channels through possible equity stakes in platform operators so as to take synthetic exposure to companies and P2P loan seekers. It will also allow Institutional capital to be well placed if a Platform is sold or an IPO is carried out (as is what happened for Lending Club in the US).
" REGULATORY POSTURE -Unless an online crowdfunding platform offers related services that are regulated such as, for example, payment services or MiFID investment services (in which case, it would need authorisation from a Central Bank) neither the relationship between the investor and the business, nor the online crowdfunding platform, is regulated. There is no legislation or regulations in Ireland specifically dealing with crowdfunding. Consumer protection legislation, and financial services legislation generally was developed before crowdfunding developed into a key source of finance. As a result, this legislation of itself is unlikely to adequately regulate the sector, but legislation such as MiFID, the Payment Services Directive, AIFMD and the Prospectus Directive could provide the necessary framework.
Source: Ireland :Department of Finance White Paper (January 2018)
The European Banking Authority (EBA) has concluded that regulatory convergence in the area of crowdfunding is desirable, using existing financial services legislation (notably the Payment Services Directive) as the starting point. On equity crowdfunding, the US has set up a regulatory regime to reduce the compliance requirements of platform operators and securities issuers, while protecting investors at the same time. Legislation was enacted to support start-ups. US Investors in crowdfunding need to complete a questionnaire, acknowledging the potential risks in such investment. They also have an unconditional right to withdraw from the investment for any reason until 48 hours prior to the deadline specified in the issuer's offering materials.
Laws are bespoke and not harmonised regionally or globally, reflecting the desire of Central Banks not to stifle innovation in the Fintech and Crowdfunding space while also balancing investor protection. As the market develops, more co-ordinated regulation will be evident so as to control the overall scale and conduct of the market. This may increase costs and dilute returns to investors.
" DEAL FLOW & DUE DILIGENCE – To ensure a sustainable investment and operating model for the industry and crowdfunding platforms, having an available supply, in sufficient quantities of deals that are capable of passing acceptable investment analysis will be important.
" RISK ATTITUDE -The type of business that is chosen should be determined by HFI's attitude to risk. Businesses that trade in real assets have a track record of performance and an established position in the market. However, they are less likely to produce the returns of a riskier, early-stage digital business. If the business has physical assets such as property, these can be sold, which may provide some compensation for investors.
" PORTFOLIO MANAGEMENT – Most start-ups fail altogether with a failure rate of around 40%. This means it's even more important that HFI have investments in a wide range of areas and business types.
" TAX RELIEF – Consideration should be given to local taxes, cross border and US taxes regarding any redemptions or return of funds to the US. Appropriate structuring should be facilitated between the $investment of HFI funds to the platforms and the underlying target company or P2P counterparty.
" EXIT MECHANISM – Crowdfunding models typically have higher yield returns compared to traditional finance models. However, the risk is higher with less protections. P2P lending and factoring/invoice discounting have more predictable cash flows and offer attractive yields depending on which credit quality is accepted. Equity based crowdfunding investments are unlikely to see returns within the first two – year period.
3. INVESTMENT ANALYSIS
Alternative investment opportunities allow, at this time, for a more targeted arbitrage of returns versus more traditional investments.
RECOMMENDATION
Considering the risks and the stage in the maturity life cycle of the industry, I would recommend that the total available investment is allocated on a 'portfolio basis' so as to diversify risk.
" TOTAL INVESTMENT – $20M – 3-year horizon.
" JURISDICTIONAL ALLOCATION – Recommend that $10M is allocated to US Crowdfunding (biggest market), $7.5M (Sterling equivalent) is allocated to UK investments (next biggest) with $2.5M (Euro equivalent) is invested in Euroland countries (including Ireland).
" CURRENCY OF INVESTMENT – USD, GBP and Euros, with hedging of FX done at a HFI level.
" INVESTMENT ALLOCATION- Four key investment channels and % investment recommended.
(1) Equity Stake in Platform Companies (20%) – Strategic Capital Markets play ($4M).
Emphasis on mature players in the market, who have recently turned from break even to profit making. 8 x $500k Equity investments in well run profitable platform in Euroland, UK and US in order to get synthetic exposure to wide variety of target companies and loan credits. The selection of platform operators for investment is subject to discussion and further due diligence, but I would recommend 40% P2P platforms (Funding Club, ZOPA), 30% in equity- based platforms (for example, Fundable, Crowdfunder, CircleUp and Angel List) and 30% Invoice discounting/factoring platforms (Invoice Fair).
(2) Lending based Platforms (50%) – P2P loans (35%) and Invoice discounting (15%) ($10M).
Investing is recommended in companies on a yield (risk/reward) priority basis, with lockbox accounts for monthly payments and disbursements. Again, a good distribution of investment targets across the US, UK, and Europe. Emphasis on 'well screened' credits across a wide mix of industries and repeat customers, where possible. Initial target P2P platforms to access lending opportunities, are:
LENDING CLUB
PROSPER
UP START
(3) Equity Crowdfunding (20%) – a good and varied distribution of investment targets ($4M).
Emphasis on non-traditional company structures/investments – for example, Technology, Fintech, Regtech & big data companies. See below Fintech ecosystem for more details on potential targets.
(4) Real Estate Fund/Crowd Funding – to position for management of distressed real estate bank loans/companies ($2M).
Engage in 'active' management strategy – RealtyShares, PeerStreet, Equity Multiple & Real Crowd are Real Estate platforms to consider, based on indicative average returns below.
APPENDIX I – VOLUME ANALYSIS
APPENDIX II – GROWTH
APPENDIX III – WORLDWIDE DISTRIBUTION
APPENDIX IV – KEY PLAYERS – UK MARKET
TOP 10 US CROWDFUNDING INVESTMENT SITES
APPENDIX V – GLOBAL LEADING COUNTRIES