by: Grow VC Group
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Crowd Valley (a Grow VC Group company) was invited to speak at the Globe Forum in Vancouver on enabling institutional capital deployment in the context climate change and the development of ‘green innovation’. Canada’s Prime Minister Justin Trudeau opened the event with an enthusiastic outlook on the opportunities at hand and a call to action, and several ministers, institutional funds and technology leaders participated in the keynote sessions, including Crowd Valley’s CEO Markus Lampinen.

Climate change is a crucial discussion point going on several years now and is becoming more central even in finance related discussions. As an example, Tim Loh, Bloomberg at this link, describes how JPMorgan, similar Morgan Stanley, Citigroup, Bank of America and Wells Fargo, won’t finance new coal mines and will no longer give money to coal-fired power plants in some countries, in order to combat climate change.

In the Globe Forum session, the speakers covered how billions of funds are locked away in mandates, despite the demand to invest in technologies to combat climate change. Investment opportunities in sectors such as clean tech, solar, infrastructure, are out of reach because of the structure in place that prevents the participation in what can be considered smaller investment opportunities.

If the cost per investment is not linked to the investment size, it means for each investment you are effectively paying the same cost. So the cost of making a $500M investment is the same as making a $50M investment. And further the same as making a $5M investment. To spell that out, to allocate $500M in $5M investments, would cost 100 times more than to allocate $500M in one single big ticket investment.

This is purely a look at cost structure, there are other factors at play too, such as later stage investments often having lower risk profiles, having been de-risked during the market roll out in its critical areas, all of which are key considerations for an institutional capital deployer with a stringent mandate.

​With an inhibitive cost structure, the sheer efficiency digital finance applications bring can represent a significant opportunity. With new age tools efficiency can be introduced to deal sourcing, vetting, deal structuring, diligence, communication and allow larger funds to expand their operations by streamlining their operations. The impact can mean diversification into new underserved asset classes and access to deals that are smaller in size as opposed to the traditional investment opportunities.

The Globe Forum was an important gathering of key policy makers and institutional capital sources, none the least the stakeholders of the p80 group, and we at Crowd Valley remain optimistic on new innovation to come as large capital leverages opportunities created by efficient new technology in the global arena.

Read the whole article on Crowd Valley Blog.

Canada’s Prime Minister Justin Trudeau

Canada’s Prime Minister Justin Trudeau

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Grow VC Group The Grow VC Group is the world leading, global pioneer of securities crowd funding, peer to peer marketplaces, new investment models and global business development. Established in 2009, the Group has developed new investment models on six continents and continues to innovate the global market.

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This entry was posted on Wednesday, March 16th, 2016 at 4:00 pm and is filed under Business Updates. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.