Putting Crowdfunding Industry on Blast – Especially MicroVentures new deal with Indiegogo for Equity Ownership.

There is a new ‘buzz’ going around in the investment game—crowdfunding investment. Though crowdfunding is a relatively new investment practice, existing businesses, individual, and startups are increasingly looking to raise funds through this method. The Global Crowdfunding Industry Raised $34.4 Billion In 2015, And Could Surpass Venture Capitalists In 2016.

   

the equity crowdfunding sector, a Forbes analysis claims that venture capital averaged to roughly $30 billion per year; and in 2014 accounted for roughly $45 billion in investments, whereas angel capital averages roughly $20 billion per year invested. Equity crowdfunding was opened to the public in the U.S on September 2013, under the JOBS Act. But, it was restricted to ‘accredited investors only’; even then there was a $1 billion investment made online through equity crowdfunding while 2015 is estimated to have over $2.5 billion in total crowdfunded equity investment. Even though the growth is huge, the equity crowdfunding sector has some unavoidable flaws. Here is an example of a crowdfunding platform from the United States that is just starting to gain momentum due to their collaboration with Indiegogo, and how it will haunt their future if they will not adjust: MicroVentures is an Equity Based Crowdfunding Platform.  They started their business in 2012, but just recently got attention due to Indiegogo. Here is a chart of MicroVentures website traffic in the last few months.

    data by:  SimilarWeb  You could notice that they increased their traffic tremendously ever since October, 2016 when they joined with Indiegogo.  Before joining Indiegogo, they had no credibility. Checking their company review on GlassDoor shows a rating of 2.0 out of 5 stars, which is really bad. I personally reached out to MicroVentures to check on their investment opportunities in equity crowdfunding.  All I got is a vague explanation without any transparency of their offerings. The real question is why is all their equity campaigns such a secret?  You first have to verify your identity by loading two forms of ID’s, and then get ONLY certain information about the campaign you would invest in. Ask them that you would like to speak to the founder, and you will get nowhere. These are the leading reasons why MicroVentures will fail in the future;

• Lack of communication
• Lack of information
• Lack of support and updates
• Insufficient support from the platform
• Bad Customer Service
• Zero Clarity
• No community for investors to speak to one-anther and with the founders.

  The crowdfunding ‘buzz’ is apparent and here to stay with huge growth promises! At LOCODOR we are changing everything that MicroVentures represents. Yes, we are a lot smaller than them currently. But we have a mission & passion in our work and will do our best to disrupt the current model of Crowdfunding Platform norms. We believe in an open-source and open-communication between inventors and backers. LOCODOR is still in phase-one beta.  Stand by for more and more changes ahead. If you feel that the Crowdfunding industry is missing transparency factor, please join our revolution and join us today!