There are some interesting things that could happen with crowdfunding in 2015. Some have said that there will be a spectacular failure of the platforms and it will change how businesses are funded forever. Others believe that companies will look to merge together more frequently and consolidate the crowdfunding space so it becomes more streamlined. Here is what we think is going to happen to crowdfunding in 2015.
1. Title III Finally Gets Some Foundations
When the JOBS Act made it legal to do retail crowdfunding, it gave everyone some high hopes about equity crowdfunding. The only problem is that the rules which were promised, and even demanded, never came about. The rules that have been proposed are fine enough, but they could be better. We see Title III getting taken up by a Republican controlled Congress so that businesses can finally take advantage of this law.
2. Title IV is Going to Come About As Well
The delays in Title III have been so massive that several have predicted that Title IV would become a reality before Title III. In 2015, we’ll see this part of the JOBS Act become implemented because it’s what small businesses are going to need. Everyone is excited about the possibility of every small business being able to raise up to $50 million in capital.
3. The US Will Keep Watching What the UK is Doing
Crowdfunding is HOT in the United Kingdom right now. There is an ever-growing portfolio of crowdfunding products that anyone can begin investing into, including mini-bonds and convertibles, that haven’t always been available. Finance has grown dramatically with these options, so we see the US finally coming around to pay attention to the economic impact that crowdfunding has had overseas.
4. You Will See Major Platforms Enter into Equity Crowdfunding
Indiegogo is the primary platform that will push equity crowdfunding when it becomes available nationally in the US. They’ve made it a well-known secret that they’re watching and pressuring the SEC to develop rules that will help to expand the equity presence which is offered. Look for future crowdfunding campaigns on many major platforms to embrace a hybrid of rewards and equity options for backers to consider.
5. Europe Will Cause the Biggest Expansion of Crowdfunding
The European economy is in need of some help. Data suggests that small European companies are experiencing a major funding gap. Although the culture of crowdfunding may be a bit different in Europe from the American perspective, there’s no denying the fact that small businesses are what drive employment in an economy. Embracing crowdfunding to help small businesses achieve real growth just makes sense.
Real estate might be leading the charge into future crowdfunding opportunities, but every sector is going to benefit from what 2015 will bring – if it is allowed, that is. We’re confident these predictions will come true, so be ready to get your investments ready for some fresh ideas in the months to come.
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