In our continuing look at how the new face of finance is putting the pressure on banks, now a new equity based crowdfunding platform could be gearing up to unsettle the investing world, and this time attention is on finance. Unlike Kickstarter, Indiegogo, and other crowdfunding sites, the recently launched BnkToTheFuture says it plans to disrupt the status quo of crowdfunding by allowing investors to share in the rewards of their investments and to become shareholders in the companies.
The global online investment platform allows investors to invest in financial companies, funds and other new and alternative financial products. Co-founder and CEO, Simon Dixon, is a former investment banker, trader and stock broker (and a former director at the UK Digital Currency Association and UK CrowdFunding Association) who left the industry in 2006. Dixon says the future of finance is going to look very different from the way it looks today, and even from the way “traditional” crowdfunding platforms function today. Unlike stories such as the development of Oculus Rift (which raised $x on Kickstarter, was then acquired by Facebook for $10 million, but shared not of the gains with supporters), BnkToTheFuture offers investors the opportunity to invest in the companies and products that it says are building the future of finance.
New Tools, New Currencies, New Thinking
Of the $7 million already raised by BnkToTheFuture to date, 21 percent have been with Bitcoin and the platform continues to focus on helping investors who are new to the Crypto and Blockchain space make their first investments in the virtual currency sector. BnkToTheFuture also pays dividends in Bitcoin to get investors used to using Bitcoin, which, for many investors, is a first time experience.
BnkToTheFuture works with a variety of Bitcoin-related projects, including Shapeshift, Bitcoin Capital, Satoshi Point, Mimex and more. And because the platform is focused on financial innovation and technology, it emphasizes investments in businesses that are not only Bitcoin-based but also Crypto and Blockchain-based businesses. And their investment seems to be paying off. Last week, MegaNet founder Kim Dotnet announced on Twitter that he would be partnering with BnkToTheFuture and Max Keiser to raise capital for his new anti-spying Internet project. Now that's something to think about.
So how does BnkToTheFuture work? The platform pools together investors from around the world so that each investment opportunity has a ‘crowd’ of potential investors, which then pushes the company or investment forward. BnkToTheFuture says its team of financial experts often invest their own funds in the investment opportunities listed on the site so that the platform and its investors’ interests are aligned. So, depending on the investment itself, even people with very little experience (and limited investing funds) could potentially get in on this investment opportunity.
Diverse, Interesting Opportunities
Some of BnkToTheFuture previously successful investment rounds also make for interesting reading; these include crowdfunding platforms such as StartJoin (a crowdfunding site that offers its own currency) and the BnkToTheFuture platform itself; specialist funds that invest in financial innovation, bonds backed by Bitcoin mining; the Mimex global Bitcoin exchange; and pretty much everything in between.
According to Dixon, BnkToTheFuture's founders came up with the concept of financial equity based crowdfunding back in 2011, and spent the next four years investing in developing their ideas. As with many financial ventures, BnkToTheFuture says that the hardest part of launching their business was overcoming regulatory hurdle, which they have succeeded in doing.
Will you be willing to take the leap into virtual currency investments and cutting-edge financial tools?