Tempted to get involved in the crowdfunding and secondary market revolution for private securities but don’t know where to start?
Then help is at hand.
The crowdfunding phenomenon raised $113.52 billion last year, according to Pitchbook data, a year-on-year increase of 1,021%.
It is being driven by a new breed of investor keen to acquire a stake in private companies, as well as providing those businesses with access to crucial new funding via Regulation CF or Regulation A+ equity crowdfunding.
The key to further growth is the ability for those private companies – whose shares are not traded on public exchanges such as the Nasdaq or NYSE – to have their equity traded via a secondary market using a regulated Alternative Trading System (ATS) in much the same way as public companies.
Now the award-winning, broker dealer Rialto Markets is looking to empower more private companies and their would-be investors, by launching its online Knowledge Hub to aid investors and issuers in their learning from leading Fintech thought leaders.
This provides a range of easy-to-understand online articles and guides for those wanting to learn more about the exciting opportunities on offer.
It aims to deliver balanced articles extolling the virtues – and highlighting the risks – for both investors and private company issuers.
In addition, it provides guidance on the benefit to investors of holding diverse portfolios to reduce the risks involved, whilst always remembering that private securities can be traditionally highly illiquid assets.
Rialto Markets’ CEO and co-founder Shari Noonan explains: “The Knowledge Hub will be an expanding resource on our website, with a double role; firstly, to supply all our customers – issuers and investors – with plain language, easy access background information, and answers to any queries they may have.
“And there’s even a jargon busting glossary of financial terms that any newcomer to the sector might need to help them find their feet, as crowdfunding and the democratization of private securities is set to accelerate in the coming years.
Rialto Markets also operates a fully compliant secondary market ATS platform which empowers the buying and selling of shares in private companies. This includes equity crowdfunded companies and other forms of private securities including NFTs, crypto currencies and other types of digital assets in a much more regulated environment.
There are 27 million private companies in the US alone, with many having hundreds if not thousands of individual investors that could take advantage of equity crowdfunding and a regulated secondary trading market for private securities.
Forbes reported the private securities market would be worth a record $7 trillion last year and forecast that it would hit more than $30 trillion by the end of the decade, driven in part by equity crowdfunding and other digital private securities opportunities.
Rialto Markets’ online Knowledge Hub aims to ensure thought leaders can support high-growth private companies and smaller retail investors as well as larger accredited investors through this platform.