Kim Wales

An accessible, low-risk approach to investing via a brand new alternative investment mechanism "CrowdBureau" explains concepts of the rise of Crowd Finance in today's re-regulated and democratized global capital markets; how the JOBS Act is proving to be a game-changer for entrepreneurs and retail investors;and how it can benefit the portfolios of retail investors, private equity investors, angel investors, and venture capitalists while spurring innovative entrepreneur movements and social impact. Written by a securities (equity and debt) crowdfund investing industry pioneer, this book provides clear explanations of the fundamental concepts at work and the forces that will catalyze capital formation, foster transparency, and encourage market confidence. Crowd Finance, which includes Equity and Debt Crowdfunding, Peer-to Peer Lending (P2P), Liquid Alternative Funds, Pension Led Funding, and Seed Enterprise Investment Schemes, is in its infancy. The book argues that Crowdfund Investing can enable an equity income approach to investing for an easy, low-risk option that balances the issue of record low yields seen in other assets like bank deposits and bonds. Several brand name private equity and hedge funds, most notably AQR, Blackstone, and Apollo Global Management, have recognized the distribution opportunities and developed vehicles aimed squarely at retail clients, with minimum investments of as low as $2,500 in some cases. The distribution opportunities for alternative vehicles targeting retail investors are potentially enormous. Approximately $19 trillion in assets is up for grabs from defined contribution (DC) pension schemes, individual retirement accounts, annuity reserves, broker-dealers, and registered investment advisers (RIAs). Readers will gain a deeper understanding of alternative investments strategies with practical guidance backed by supporting theory and the experience of a practitioner at the forefront of this burgeoning Crowdfund Investing industry. Over the last decade, the challenging economic and market background has led to lower returns and higher volatility across many asset classes. The 2012 JOBS Act--designed to bolster business growth and create jobs--reformed the Securities Act of 1933 and 1934 for small and medium-sized business owners and created an environment that supports crowdfund investment as an asset class. "CrowdBureau" is a comprehensive guide to the topic, providing a thorough explanation for those interested in building a more robust portfolio. Understand the fundamental principles of Crowd Investing Learn how the depressed economy and the rise of social computing affect investing Understand the interplay between collective intelligence, deliberative democracy, and consumption Discover the principles that will shape capital markets for the 21st century For many people, the objective of investing is to achieve long-term capital growth with an acceptable level of risk, and securities-based crowdfunding was designed to do just that. For investors seeking an alternative approach to the market, "CrowdBureau" is a detailed guide to a new method of low-risk investing.

Written by an industry pioneer who has hands-on experience in the brave new world of peer-to-peer lending and equity crowdfunding, this book serves as a resource for investors and entrepreneurs alike and investigates how these alternative mechanisms will increase the financial and operational capacity of borrowers, lenders, buyers, and sellers in the private markets. More than 60 governments across the globe have established financial inclusion as a policy priority and are vying for access to and use of financial services by households and firms to boost economic growth. A thought leader on securities-based crowdfunding, author Kim Wales explores how women and the millennial generation, the world's largest groups of people, can influence "crowd" direct investment, economic freedom, and economic growth. The book provides building blocks to instruct investors and entrepreneurs about how to leverage social networks and supplies tools to help retail investors—"the crowd"—to understand the language, risks, and rewards of this type of investment. Providing an indispensable resource for investors and entrepreneurs, Peer-to-Peer Lending and Equity Crowdfunding summarizes past theory as well as current schools of thought related to capital formation and economic growth, explains why creating a secondary market for private placement offerings is essential to stimulating market liquidity, and documents how public-private partnerships using digital finance will enhance financial inclusion and positively impact investing. The book not only describes how crowdfunding works but also explains investment approaches, secondary markets, governance and compliance, transparency, and risk models that are necessary for investors to make informed decisions.