Just like in high-school, the most popular kids don’t necessarily absorb the most. The same is true when we talk about crowdfunding.
Equity crowdfunding is not in the spotlight. Most people don’t know which equity crowdfunding platform is the “Kickstarter” of equity CF. But in fact turnover-wise, equity CF is already far ahead reward based and donations CF. How big is the equity CF market?
According to Stockhouse’s Markus New of InvestX, the equity CF market relies on accredited investors worth $12,7 trillion and retail investors worth $17,3 trillion. This makes a $30 trillion market. But there is a catch! This type of CF needs to be supervised much better than the reward/donations type, due to all kinds of fraudulent possibilities. That means that the public sector, meaning the government, must provide all necessary rules and regulations to filter the true investors helping jump-start whole economies from the sham investors swimming in the muddy waters of unsecured fraud opportunities.