Technology, infrastructure, and money seem to gravitate toward efficient ways to function. It is only a natural evolution that Securities Laws will evolve and the exchange of securities will become more efficient. We saw that multiple times in the past 30 years as the stock exchange moved away from noting stock prices in 1/6 increments and went to decimals. We have seen a massive change from the intense floor of the NYSE in the 70's and in particular the 80's as that has led to computer based trading and a faster, easier process. (although all methods can be in danger of manipulation). It is only logical that the trading of private company stock should move out of the country club and into a more efficient method of trade. Hence, the evolution of equity crowdfunding. The opening of general solicitation from Title II has allowed for the evolution of technology to facilitate a more efficient market. And isn't that what we all want? A public forum with which to exchange private stock is coming. And when it does the line between who is a public company and who is a private company will blur further.
What is the future of crowdfunding, take a look at this perspective from FundAmerica, a technology and services provider to the industry.
Rapid change and uncertainty create a greater need for risk management and risk transfer solutions. The insurance marketplace will rise up to meet these exposures in time. For now, Emerging Risks has our finger on the pulse of the market and we have some of the most creative solutions available.
Monica M. Minkel, RPLU, MLIS, cyRM has been working exclusively with Directors & Officers Liability, Professional Liability, Cyber Liability and related products for more than 15 years. She started her interest in finance by loaning money to her mom at age 11 (complete with a loan agreement and competitive interest rate). She is passionate about all things in the financial industry and the way technology is changing the way capital markets function.