Crowdfundraiser Shifts Gears to Debt & Equity Crowdfunding with the Launch of a New Website
November 04, 2014 (PRLEAP.COM) Business NewsNovember 4, 2014 - Crowdfundrasier.com, a firm dedicated to the proliferation of crowdfunding, announces the launch of a new website in combination with a shift in the company's focus from rewards-based crowdfunding to equity and investment crowdfunding. The shift comes before the full weight of the Jumpstart Our Business Startups (JOBS) Act is fully implemented.
Crowdfundraiser and its principals and partners recognize the massive opportunity in the crowdfunding industry is not in operating a portal and taking roughly 5% to 9% of funds raised or even in assisting in raising equity and debt capital for businesses, but in the actual investment in the companies themselves. "The biggest potential upside resides in having ownership stakes across the very best deals from all potential equity and debt crowdfunding portals," says Jake Durrant, Managing Director. "It is with that realization that we intend on simply using our investor connections combined with our aggregation and due diligence team to make strategic investments in some of the best vetted and most interesting crowdfunding deals on the market."
The principals recognize this change represents a massive strategy shift for the website and the business. "Our shift came as the result of a couple of things. First, our expertise points more toward equity crowdfunding and second, we have no desire to compete on the same field as other established crowdfunding portals and platforms," says Durrant. "We want to play in a space within the industry that provides enough niche where we can truly dominate."
Investment opportunities in crowdfunding are in a state of massive flux and will be for some time. This company pivot is likely not the first, nor the last in how the company nails its own strategy for addressing the elephant in the room that is crowdsourcing capital for business growth needs. "The opportunities for investing in private equity through crowdfunding, even before the full measure of the JOBS Act takes effect should have a positive impact on our investment strategy," says Durrant. "When most people think of crowdfunding they think of startups, but we expect many established businesses will eventually turn to crowdsourcing for anything from working capital to equipment leasing needs," he says.
Increases in non-bank lending are a good indication that the market for alternative financing is ripe for disruption. "We also expect to see greater variation in business types, sizes and maturity that begin to use crowdfunding as an alternative method for financing," Durrant says. This represents a diversification opportunity for investing in different crowdfunded asset classes with varying levels of risk and return. "We hope to capitalize on this investment opportunity as the market inevitably grows."
Founded in 2014, Crowdfundraiser.com is an enabler of equity crowdfunding services. The principals have the tacit knowledge on taking companies public and intend on using this expertise to provide liquidity and an exit strategy for accredited and non-accredited equity crowdfund investors. To find out more, please visit the company website or their crowdfund blog.