FFD.CAPITAL serves to open this impact investing capital to a larger global set of investors and individuals in the global wealth pyramid. As more Next Generation investors take up the reins, these investments will grow exponentially. Equity crowdfunding is now a larger source of startup financing than traditional venture capital and has been growing at a phenomenal rate in the last 5 years. Crowdfunding has been described by Goldman Sachs as ‘potentially the most disruptive of all the new models of finance
Equity and Debt Crowdfunding would be enabled via Blockchain
In return for investing via blockchain into an impact enterprise, the investor will get shares in the SE via Equity Tokens. One token per share. These will be tradable.
Bob Marley’s song in 1977 “One Love.” “It looks like a borderless world, it should be a borderless world, and I think blockchain can really contribute to making the world a borderless world.”
A Crowdfunding platform that provides the service of token creation and management would merge the best of two worlds. The tokens will be liquid as soon as a stock exchange will list them, the Blockchain will de facto be the custodian of the assets, increasing transparency, trust and reducing costs for all the parties involved.
A Blockchain empowered Crowdfunding would leave the traditional Venture Capital approach with a very limited added value for the entrepreneurs mainly related to the know-how, experience and practical support that the firm can give to the entrepreneur.
As a matter of fact, services such as: project incubations, mentoring and networking can be acquired by the company directly on the market; a scaled up Crowdfunding platform will be well positioned to offer such services in house. Maybe what is most important is that the balance of power will shift in favour of the entrepreneur.
One of the greatest asset based vehicles for wealth creation is ownership of equity in early stage companies. This is where you can get the biggest ‘bang for your buck’, though obviously it is also where the greatest risk lies. Equity crowdfunding allows everyone with access to the internet the opportunity to get involved with an asset class that can yield great returns. This means that wealth can be redistributed with a greater proportion of the global population reaping the returns generated by companies.
Source: The Global Wealth Pyramid Source, Credit Suisse Global Wealth Databook 2016