Crowd Funding Transparency

Article Contributed by David Drake, LDJ CAPITAL

Crowd Funding Transparency 

The Global Private Company Marketplace (PCM) movement is focused on creating its Crowd Funding subsidiary as an asset class for institutional investors as well as wealth and asset managers.  The Soho Loft (TSL) Capital Creation event platform finds itself in the center of global developments between institutional clients, banks, pension funds and organizations like the GlobeForum in Stockholm. These entities are seeking to enrich the investor community through responsible, accountable impact investments.  Europe is a leader in governance and accountability while international crowdfunding is at the core of creating ground-up movements having a positive impact on life and society.

Our work with super funds like ADIA, Temasek, Norway’s Pension Fund, Qatar Investment Authority and World Holdings by Waleed bin Talal gives us an eagle’s view of the landscape.  Leading technology solutions like Gate Impact, used in this asset class, promises a new era in accountability and Environmental Social and Governance impact investing.  This is where the private equity hedge funds, foundations, endowments, insurance firms, pension funds, institutional investors, banks and fund of funds as well as super funds (Sovereign Wealth Funds) can see the social impact, job creation and the carbon foot print of every single share bought through a Portfolio Management System as a percentage compared to a leading index.  

Visibility and Accountability

Crowdfunding as an asset class could show asset managers at ABN Amro, Lloyd Bank, ADIC and Goldman Sachs how many jobs an investment in a crowdfunding platform like RocketHub or GrowVCwould create.  Imagine the transparency and accountability created by tracking the carbon foot print and energy efficiency a $10 million dollar investment into renewable energy projects by George Washington Endowment. It would even be marketed to parents to show them the governance and environmental accountability the University creates and that students learn.  Besides informing parents and giving positive messages to students, the same investment transparency makes any portfolio accountable to the board of directors and the executive teams.

Granted, Gate Impact is way ahead of the curve in the US. This has been a criticism; it may have a much better fit in an ecologically responsible Europe.  

Our Experience and a Challenge

Our investment in TSL has allowed us to identify the leading crowdfunding and crowdsourcing research shops which is where the asset class will legitimize its value.  The Gate Impact technology allows the asset class along with all sustainable investments to show its impact on society whether through private warrants, stock or bonds, or corporate credit facilities.  

Imagine the excitement generated when a wealth manager investment is based on job creation by using this tool.  A crowdfunding asset class would then stimulate SME growth and global growth in a responsible manner.  This is what LDJ & TSL wants to accomplish. I challenge you to reach out to me with relationships and insights about how we bridge the Super Fund to the Crowdfunding platform.  We see the essential link between how they will play along and interact and with a goal in mind, the realization is merely to put the pieces together in the chain.  That link is Crowdfunding.