Tuesday, April 26, 2016

Bigscribe's localized Crowdfunding guide

Bigscribe recently released a guide on crowdfunding which I thought was a very good introduction to this new fintech phenomenon. I don't think there's any guide out there that caters to the local context and introduces crowdfunding to Singapore's retail investors or lenders. You know how the internet disrupted existing framework when Uber started connecting passengers and drivers and bypassed the traditional method of getting a taxi. Well, in a way, crowdfunding seeks to connect investors or lenders to companies and bypass the traditional framework in which such things work.

I will highly suggest anyone who wishes to even dabble in crowd funding to at least read this guide to get the general inkling of what to do and what not to do. You owe it to yourself to find out as much information about crowdfunding before putting your money into it. Besides, the book is free to download here, and it's not a long read anyway. You can finish the entire ebook from cover to cover if you read it slooowly for an hour.

If you're even remotely interested in crowdfunding as an alternative way to get a better returns for your cash, you can read the interview of two persons who had actually particpated in crowdfunding as an investor and decide if it is worth the risk. I thought their sharing of the pitfalls and the maximum allowable percentage allocated to crowdfunding (and the reasons) is worth a read. They also shared their criteria to evaluate which projects are the best to invest and which are better left alone.

Wait for what? Go and download lah! Subscribe to Bigscribe!


Sillyinvestor said...

Hi LP,

When I first saw the post, I am waiting for the chance to poke fun ... I thought u are setting up an tuition center and raising funds

I wonder if one can pick a winner from start-up, how difficult is it to pick a winner from listed companies ?

Better look at own track records beside thinking one can pick winner from start up and behave like VC?

(Honestly have not read the notes before I comment)

la papillion said...

Hi SI,

Well, some of the crowdfunding is really for start ups, but most of it is for existing private companies. You pick the companies like you pick public listed companies, by combing thru their books. Of course, since they are private, they are not scrutinized as closely as public listed companies, so you have to take the risk of their books being fair and true.

Picking companies from start up is going to be so much harder, the yield will have to be even higher than that..maybe 200 to 500% returns.