Equity Crowdfunding: Missing Pieces
Held on September 12 2016
Tom Britton (co-founder and CTO, SyndicateRoom)
Monica Tigleanu (Senior Underwriter, Financial Lines, AIG)
Fred Ling (Commercial Institutions Underwriting Manager, AIG)
Neha Manaktala (CEO, DeadlIndex)
Alex Heath (co-founder, CrowdRating)
What should we be talking about at this round-table?
Email your suggestions for the agenda to Harry Atkinson.
Equity crowdfunding is growing up. Indeed, a recent report shows that platforms were the No. 2 source of equity investment for high-growth companies in the first half of 2016, originating 158 deals, compared with 201 by private equity and venture capital firms.
But question marks remain, including the number of successful exits, a lack of portfolio diversity, illiquid markets, and weak due diligence. What can be done to ‘professionalise’ the sector? There is currently no shortage of initiatives:
- SyndicateRoom has introduced Fund Twenty8, which provides a diversified portfolio of stakes in early-stage companies within an EIS-eligible structure;
- AIG has developed an insurance product that platforms can offer investors to protect against issuer fraud;
- companies such as DealIndex are seeking to empower investors with data and dashboard tools;
- Crowd2Fund is trying to get a secondary marketplace, ‘The Exchange’, off the ground, while Asset Match offers an electronic platform for buying and selling stakes in private companies; and
- CrowdRating is seeking to become the first ‘ratings agency’ for equity crowdfunding investments.
In other words, there is plenty of real activity to discuss. I am, therefore, delighted that Tom Britton, co-founder and CTO of SyndicateRoom, has agreed to explain what would help crowdfunding mature. I am equally delighted that Monica Tigleanu (Senior Underwriter, Financial Lines) and Fred Ling (Commercial Institutions Underwriting Manager), the brains behind AIG’s new insurance product, have agreed to join the panel, along with DealIndex CEO Neha Manaktala, and Alex Heath, co-founder of CrowdRating.