To pursue our corporate mission of “Connecting Companies and Investors,” CMG understands there is a need for a portfolio of services that assist both the issuing company and the prospective investors to “find each other”. It has been less than two years since even a small part of “The Crowd” (accredited investors) could be reached via public solicitation. Emulating the pervasive success of the rewards crowdfunding sites like Kickstarter and Indiegogo, a number of sites were created for companies to “post” their Reg D 506(c) offerings. These sites have been termed “Crowdfunding Platforms,” or more specifically “Equity Crowdfunding Platforms.” It’s a simple concept: bring together qualified investors (in this case, accredited) with a number of “deals” and let the issuer deal directly with prospective investors, similar to a match.com model. There are several variations on this model but the common denominator is to build a community of “investors” and give them “access” to companies that have posted on the site.
There is large leap from a model (Kickstarter, Indiegogo, others) that averages $57 per donor and provides “a reward” like a mug or t-shirt to a SEC regulated environment where transactions can range from a few thousand dollars to hundreds of thousands per investor. The Equity Crowdfunding Platforms are gaining some traction and have in turn spawned the burgeoning “Crowdfunding Industry.” From a historical perspective this is still an “Industry” in its infancy as compared to the online stock trading platforms of the early 1990’s. In short, many things will morph and change over time as 50 million new prospective investors become fully involved in the private equity and alternative investments market.
Currently there are 60+ (and growing) equity crowdfunding platforms, each with their “own” community of investors and deals. Even now it is impractical to get a comprehensive “picture” of all the available offerings.
CMG is convinced that an aggregation of all current private offerings needs to be made available to investors. To that end CMG intends to provide its initial release of a comprehensive, all inclusive database offering in the first half of 2016. It will be one of the anchor investor services featured on www.investorsinsight.com .
Investors can build detailed personal profiles which will be combined with custom created selection filters in order to locate from the database of over 6,000 plus companies, the ones that best fit their requirements. To complement the “Offerings Database” CMG intends to introduce in the 2nd Quarter of 2016 the first in series of tools that can be used to complete a systematic due diligence process on the selected offerings.