Article

Wise Crowds, Safe Crowds: Balancing Diversity and Protection in Crowd Investing

Posted June 27, 2017 in Business Technology & Digital Transformation Strategies Cutter Business Technology Journal
Figure 1 — Emerging model of regulation and diversity in equity crowdfunding.

Small and medium-sized enterprises (SMEs) represent 99% of the businesses in Europe and are a major source of jobs and innovation. SMEs, however, perpetually face a lack of sufficient funding. Traditional financing mechanisms such as bank loans, venture capital, and angel investments are often not available to many SMEs. Peer-to-peer financing in the form of crowdfunding is increasingly filling a funding gap for companies that are unable to obtain traditional financing or are too early in their lifecycle to attract angel investors and venture capitalists. Indeed, it was predicted the amount of funding received through crowdfunding would exceed venture capital in 2016.

About The Author
Jack Smith
Jack Smith is a researcher with the University College Cork (UCC)/State Street Advanced Technology Centre. Mr. Smith holds a BSc in business information systems from Cork University Business School, UCC, and is currently pursuing an MSc through research in fintech. Mr. Smith’s research explores crowdfunding, its regulations, and how these regulations will impact the growth and value of this emerging market. He can be reached at jackdmsmith@gmail… Read More
Joseph Feller
Dr. Joseph Feller is Editor of Cutter Benchmark Review and a Senior Consultant with Cutter's Data Analytics & Digital Technologies practice. He is Professor at the University College Cork (UCC), where he coordinates the PhD program in business information systems, supervises postgraduate and postdoctoral researchers, and conducts research. Prior to joining UCC, Dr. Feller taught at the Ringling College of Art and Design. His research… Read More
Rob Gleasure
Rob Gleasure is a Lecturer at Cork University Business School and Co-Director of the MSc e-business program at University College Cork (UCC). His research interests include design science, NeuroIS, and online crowd behavior (particularly crowdfunding). Dr. Gleasure has been published in Journal of the Association for Information Systems, Journal of Strategic Information Systems, Sloan Management Review, Journal of Information Technology,… Read More
Philip OReilly
Philip O’Reilly is a Senior Consultant with Cutter Consortium's Business Technology & Digital Transformation Strategies and Data Analytics & Digital Technologies practices. He is also Professor of Financial Technologies and Information Systems at Cork University Business School, University College Cork (UCC), and the Founding Director of the State Street Advanced Technology Centre at UCC. Dr. O’Reilly has been a leading member of… Read More
Jerry Cristoforo
Jerry Cristoforo is an Adjunct Professor and Vice Director at the Zhejiang University Blockchain Research Center, China, responsible for envisioning and developing research capabilities in the domain of blockchain. He is also Chief Scientist for Insigma Hengtian Software LTD, a joint venture between State Street and the Insigma Corporation that provides financial technology services to global and mainland China financial institutions. In this… Read More
Li Shanping
Shanping Li has been with Insigma Hengtian since 2004, where he serves as CIO. Dr. Li has been a professor of Zhejiang University since 1998. He works at the College of Computer Science and the College of Software Engineering. Dr. Li’s main research areas are software engineering, distributed computing, and the Linux kernel. He received his master’s degree in 1987 and his PhD in 1993, both in computer science, from Zhejiang University. He can be… Read More
Not a member? Gain Access to the Cutter Experts today — register now to read select open-access articles.