Bloomio, a blockchain based equity crowdfunding platform that allows investors to fund promising startups in return for tokenized shares, today publishes a comprehensive new report on the state of equity crowdfunding.
The study was conducted in collaboration with the highly-reputed IMD business school and provides a detailed analysis of the key opportunities and barriers to investing in startups, based on a quantitative survey of 700 participants and qualitative interviews with fintech experts and startup founders.
The report provides readers with a variety of original insights into equity crowdfunding. Amongst these, it finds that a significant portion of investment in startups is driven by an ambition to invest in something worthwhile and drive social change.
“Over half of our survey participants say that their main motivation for investing in startups is unrelated to profit, something unique to the startup industry,” said Bloomio CEO Max Lyadvinsky.
In addition, the report outlines several key barriers preventing investment in startups. For retail investors, low awareness of venture capital opportunities represents the primary factor disincentivizing investment, whereas the main blockade for inexperienced investors is a fear of being scammed. A perceived lack of funds available for investment also discourages prospective investors from entering the venture capital arena.
The report also finds that investors with startup experience recognize team performance as one of the most important things to consider prior to injecting funds. Experienced investors additionally have a higher tolerance to risk than those with no experience in startup investment.
Bloomio plans to leverage the report’s findings to enhance its business plan and improve its customer offerings. “The study gives us a far greater understanding of customer needs and concerns, which is crucial for any company looking to drive above-market performance,” said company CEO Lyadvinsky.
Bloomio is a pioneer in equity crowdfunding, a new form of investment which allows large groups of micro-investors to put money into projects in return for shares. The company was founded in 2017 with the objective of disrupting the venture capital industry. That year, the company was named winner of the IMD business school executive startup competition.
Disclosure: This article includes a client of an Espacio portfolio company