Jouko Ahvenainen, Founder and Chairman of Grow VC Group, gave speeches yesterday and today in Washington D.C. and New York to financial professionals and top institutions about the new digital ecosystem for investing and lending. He especially emphasized that when we talk about crowdfunding, p2p lending and other online investing models, we cannot only think one platform that makes some match making. We are talking and building much larger ecosystem that must follow local and global laws and regulations and meet the needs of different of kind of investors and assets.
He, for example, highlighted the following points:
- There is and will be strong finance (local and global) regulation to this market, starting from Know Your Customer (KYC) and Anti-Money Laundering (AML) to required information and traceable transactions,
- There are different kind of investors from supporters with $100 to institutional investors with $100M,
- There are many security and asset classes and investing vehicles and models
- It is not only the regulation, but also investment policies, due diligence requirements and legal responsibilities,
- Also existing finance institutions want to use online models and processes more,
- This is not only about startups, this is about all kind of securities and assets.
The reality is that success of in this market can be based only on the well working ecosystem and cooperation of different services providers. The pioneers are now working on this market. Those who are able to build a larger enough partner network and offer the full service are able to win users.
He concluded the speech to the following points:
- No one can build this ecosystem alone and have credibility to play all roles,
- Extremely important to get new digital platforms to work with existing investors, financial institutions and professional services (e.g. research, analysts and underwriting),
- Digital services can cut unnecessary middle-men (e.g. those whose position has been to be a gatekeeper to information, deals and investors), but it still requires top level value added services to help all parties and bring credibility to the market,
- The winners in this market focus to do their own part very well according to laws and regulation and partner with other similar actors.
See the whole presentation below or in Slideshare.