Ashwin Parameswaran has recently written about “Maturity Transformation”, a term he uses to explain the existence of banks. Its an interesting viewpoint and within his analysis he looks at solutions to the failure of banks to finance disruptive businesses considered risky investments. He presents one answer to this challenge as equity crowdfunding:
The answer is simple – we need to do more to promote equity investment in disruptive new enterprises. The conventional wisdom states that there isn’t enough risk appetite for all the equity financing that new high-risk businesses require for their investment needs. Again, the growth in equity crowdfunding is slowly disproving this myth.
Here at ShareIn we believe in breaking down the barriers to investing. It’s our belief that accessing investments in high growth potential companies should not be the preserve of the connected few. As Ashwin says:
If we want capitalism to become less selfish, we need to enable each individual to become a capitalist.