The Future of Equity Crowdfunding — As the Experts See It in 2022

The 2022 Equity Crowdfunding Conference — What Is It?

The 2022 Equity Crowdfunding Conference in Los Angeles was held by leading crowdfunding platform providers and VCs, providing a “melting pot” of experiences and insights. A variety of panel sessions discussed the future of equity crowdfunding and how it will impact VC and the investment market as a whole. It was also an excellent opportunity for early-stage businesses to present their ideas and receive expert feedback.

What Were the Main Takeaways From the Equity Crowdfunding Conference?

Investing in Private Company Will Be as Easy as Investing in a Public Company

Ian revealed that in a panel session of leading crowdfunding CEOs, it was agreed that five years from now, investing in a private company should be as easy to do as investing in a public company. This would mean that the friction and time-consuming investment process would be gone, making it far more convenient for retail investors to participate in the private equity sector.

Ian elaborated, “Crowdfunding technology, the feature sets, all the things that that are in and around that experience for the retail investor, are going to continue to improve and be refined — and the technology will improve to the point where it’s going to be just as easy for that retail investor to participate in the private company investment opportunity as it is in the public company sector”.

Tokenization Will Be the Standard for Private Investment

The same panel of CEOs also agreed that the tokenization revolution would transform investing in private companies into a universal standard across all retail investors. This is largely due to tokenization being made available as a blockchain innovation, allowing for a more secure transfer of ownership. This technology also makes storing and trading these assets easier, ultimately providing investors with a better experience.

Ian further shared his insight from the panel: “In terms of the language of this, many would call it investing in private companies. In truth, it’s actually investing in the innovation economy. This is the structural change that crowdfunding (is offering) as it’s now gathering real momentum. And clearly, this is across the world, the structural change that it’s bringing to capital markets”.

It’s this sort of fundamental change in the paradigm of investing and capital markets that equity crowdfunding is bringing about, and it’s set to be a literal game-changer for retail investors across the globe.

Equity Crowdfunding Will Be Global

The panel at the conference agreed that equity crowdfunding will be a global phenomenon within five years. It’s believed this new form of investing will move away from its regional roots and become a truly global movement in a relatively short period of time. This means that investors worldwide will soon have access to international investment opportunities that they would otherwise not have had access to.

Ian explained, “Now it’s very clear, you know, from the largest companies in the industry, and the leaders of those companies that that that is absolutely the direction of travel. And so, you know, that’s obviously enormously exciting”.

Ian added that it wasn’t just the global scope of equity crowdfunding but the extent of innovation it will foster: “What struck me is… the breadth of innovation available… there’s everything from the future of healthcare, fire and smoke, the future of cannabis, to the moon, investing in space, clean tech solutions for the future… and it just goes on and on. I get really excited by all this kind of talk of the future and how human innovation and imagination can take us”.

There Will Still Be Room for VC

Although the crowdfunding movement is taking off, Ian clarifies that VCs still have a role to play. Equity crowdfunding will complement venture capital rather than replace it; there will still be space for VCs in the market, but with increased competition from crowdfunding platforms.

Ian added, “There’s a view that crowdfunding in its different sort of flavours is somehow competing with VC investment. And to the extent that they all want to position in a really great company, then, then that is true. But where it’s not the case is that unlocking the enormous power of the retail investor and then many, many millions around the world, what it does is it drastically reshapes the capital opportunity. And so what it’s really doing is vastly growing the amount of capital that’s available to those early-stage businesses that seek it. It’s not like there’s a finite amount of money. And suddenly, crowdfunding is just going to take more of that off the table”.

How Is Dacxi Placed to Take Advantage of the Global Equity Crowdfunding Sector?

Ian says that the conference reaffirmed to him that Dacxi is extremely well-placed to take advantage of the growth in equity crowdfunding. As a blockchain-based platform, they are one of the few projects that have been able to successfully implement tokenized assets, meaning they can offer investors access to private investment opportunities with greater security and convenience than other platforms.

Dacxi received serious validation and interest from the CEOs at the conference, with Ian explaining, “What’s probably most exciting for us is the chance to meet with CEOs of crowdfunding companies from different parts of the world all in one place together, helping them understand the Dacxi Chain vision. And the level of interest that we’re getting from these companies is absolutely staggering. And in some respects, not surprising. But certainly, you know, incredibly exciting for us”.

The future of equity crowdfunding is looking brighter than ever, and Dacxi Chain looks to be at the forefront of this revolution. With its blockchain-based platform, it’s well-placed to take advantage of this new opportunity for global investors in private equity funding. It will be exciting to watch how the sector evolves in the next five short years — which is an incredibly short time for such an exciting revolution in global investment and equity funding.

You can listen to the full episode of this Unchained podcast here.