06 April 2018 @ 9:00AM Equity Crowdfunding Investors
I like to invest in companies solving a problem in society that will inevitably lead to great growth opportunities
I first joined OnMarket in October 2015.
The primary reason I joined OnMarket was because they had a wide range of offers available through the simplicity of an app and a browser portal. Almost every offer that I saw on any broker channel was already on the OnMarket platform. Brokers will usually only show offers that they have a lead on, but if I can have access to the same (or even more) offers on a platform I can save time which is in short supply in my world and invest.
I’ve invested in China Dairy (CDC), BuyMyPlace (BPC), and Absolute Equity Performance Fund (AEG).
The main reason I invest is to receive profit. Moreover, I like to invest in companies that will bring about social change not only because it helps improve our collective quality of life, but also because these companies are more likely to generate strong financial returns.
I believe a crucial factor is the company’s management. Even if the company’s idea is great and innovative, it can’t ‘get off the ground’ if the company’s leadership is poor. It’s vital for the management to have solid business experience and connections to supplement any new idea.
The next thing I look for is the company’s potential for growth. I want to invest in a company that is entering a new industry, not a mature or contracting market. In my opinion, the industries with the most growth go hand in hand with those that aim to bring change in our world. If a company is trying to solve a common societal problem, it will inevitably grow as well. Just look at Google, Facebook, Air BnB and Uber – they all make the world a better place.
In addition, I want some diversity in the companies that I invest in. I don’t want to invest in two companies that are in the same industry and competing with each other. It doesn’t make sense.
Also, I want to invest in companies when they are just starting out. I don’t want to be ‘late to the party’ once the market is already saturated. If I can invest earlier, my returns will be bigger along the way.
Finally, I prefer companies that have potential to scale globally (e.g. tech firms), as opposed to ones that are just restricted to Australia. A larger scale implies a higher chance of growth, which translates into more returns.
I’m a fan. I would definitely look into it. It’s a great way to diversify my portfolio and invest in companies that have potential to grow and change the world. In relation to the uptake of crowdfunding I suspect like most new concepts it will be slow to gain traction at first and be largely the domain of early adopters and once the concept is proven in this market it will follow the growth seen in the UK.