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  1. #1
    Senior Member
    Join Date
    Oct 2016

    What are the pain points in existing “Equity Crowdfunding Platforms”?

    As for me, this is the most important question today. Getting quality deal flow is the main problem. It is very competitive getting quality listings as there are many groups looking to manage quality investment offerings. But what else?

  2. #2
    Junior Member
    Join Date
    Mar 2017
    Hi, John!

    I believe you have addressed a very broad issue. As regards to the point you raised, getting high quality investment opportunities is a challenge for most equity crowdfunding platforms. Since such form of financing is not even close to mainstream for start-ups as well as SMEs, most platforms in many cases are like ''lenders of last resort''. VCs are the first ones getting the highest quality deals.

  3. #3
    Junior Member
    Join Date
    Jun 2017
    For me, I see the lack of participation and the minimum sizes of each platform's user base as the biggest pain points for crowdfunding platforms.

    Which leads to the second pain point that is the education of the crowd about the availability of this method because an uninformed crowd doesn't know that they can create equity crowdfunding campaigns to raise funds for their projects or that they can invest in private equity deals, so all platforms suffer from these two. As the industry matures both these pain points will be addressed to a certain extent, and new ones will emerge.

    Additionally, government regulatory bodies restricting access across the globe, have been slowing down the global proliferation of equity crowdfunding and access cross borders, so platforms that want to operate and grow on a global scale have been handicapped.

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