Using a randomly selected sample of more than 100 companies they worked with during the quarter, Crowd Valley attempts to provide a current snapshot of the state on the crowdfunding industry. Note this is not one of the American landscape (though it addresses the U.S. at times) for Crowd Valley operates internationally and maintains offices in London and San Francisco.
After each report’s release we speak with Crowd Valley CMO Alessandro Ravanetti about the report’s findings.
1. The combined format (which uses two or all of rewards-based, equity-based, and lending models) has grown from 3% in 3Q13 to 19% now. Is that a reflection of entrepreneurs becoming increasingly creative with the concepts as they understand both them and the markets?
It may be, but probably it is just a way through which they try to differentiate their platform and win a bigger market share.
2. You discovered less interest in clean tech and other real assets. Can you explain the decline? Is it lower energy prices? The long process of establishing a profitable venture in this space? Lack of government encouragement?
We’re showing levels of relative interest. The statistics do not show less interest in clean tech and other real assets – they show that in relative terms the other sectors showed more interest in this quarter. Overall all sectors are growing. Clean tech may be growing more slowly than other sectors within crowdfunding because of the market issues you identified. Furthermore, this sector does not yet have a clear, global market leader that encourage others to apply the same model to their territory.
3. I am surprised universities and incubators are in decline. They seem natural fits as higher education has funding struggles and cities try to attract industry.
Same as above. We don’t see a decline but instead a bigger demand from other sectors.
4. Are some of the data you published such as increased interest from private equity funds and asset managers expected as established financial players develop interest in concepts which themselves are becoming more established?
Yes, that’s right. We’re seeing an increasing number of examples of established financial firms get involved through various collaborations in this sector. Examples here:
5. I am surprised Asia and South America show such low interest compared to other continents. Do you know why that is?
Lack of regulations, different culture (especially in Asia very risk oriented), lack of education on crowdfunding.
Crowd Valley is a complete service provider for crowdfunders, peer-t0-peer lenders and other types of alternative finance marketplaces. They offer platform technology, back office services, and access to funding opportunities through North Capital and Sapphire Capital Partners.
Read our summary of their second quarter report along with our interview with Mr. Ravanetti here.