Franchising, retail, business
16/11/2015
How viable is crowdfunding as a capital source? Last year is was viable enough to generate $16 billion to small businesses. When you consider all venture capital funding in the U.S. last year was about $45 billion, according to some estimates, $16 billion stands up pretty well.
In any case, analysts predict crowdfunding to get quite a bit bigger once the SEC rule takes effect. And, in some respects, there’s no downside, because individuals who invest money though a crowdfunding platform are not necessarily the same investors who put money into more typical Wall Street and other investment opportunities. If that’s true, crowdfunding helps create a bigger pie, not a re-proportioning of the pie.
It’s true. Crowdfunding will only get bigger.
When businesses expand, real estate benefits. The U.S. Securities and Exchange Commission is publishing a final rule in January that will take a big step in making so-called crowdfunding a mainstream way for small businesses to raise money. That’s important for real estate, because one of the first things small businesses look at when they have capital to expand is their real estate needs. Should they lease or buy a bigger office, warehouse, manufacturing facility, or storefront?
How viable is crowdfunding as a capital source? Last year is was viable enough to generate $16 billion to small businesses. When you consider all venture capital funding in the U.S. last year was about $45 billion, according to some estimates, $16 billion stands up pretty well. In any case, analysts predict crowdfunding to get quite a bit bigger once the SEC rule tales effect. And, in some respects, there’s no downside, because individuals who invest money though a crowdfunding platform are not necessarily the same investors who put money into more typical Wall Street and other investment opportunities. If that’s true, crowdfunding helps create a bigger pie, not a re-proportioning of the pie.
The potential of crowdfunding is one of the top stories in the latest Voice for Real Estate news video. The segment talks about why NAR supports the January SEC rule and why real estate could be one of the beneficiaries as crowdfunding goes mainstream.
The new Upstream initiative is another top story. If you’re not familiar with Upstream, it’s an industry effort to build a single platform for uploading. managing, and controlling listing data. The initiative was conceived by a coalition of brokerages and other real estate companies and NAR was asked to get involved earlier this year as a way to make it happen more quickly and effectively, to the betterment of the entire real estate industry. The effort is now formally getting started with NAR, the Realtors Property Resource, and Upstream RE signing a final agreement.
By:http://crowdfundbeat.com/2015/11/11/crowdfunding-is-a-big-buzzword-in-the-real-estate-space-right-now/