The independent research survey on private capital markets yielded excellent results for crypto and NFTs, with secondary markets being the most applicable. The survey, conducted by The World Digital Foundation and Crowdfund Insider, focused on equity crowdfunding, venture capital, NFTs, secondary trading, and private equity.
According to the survey data, 78% of issuers and industry partners believe that having an engaged community adds commercial value to their business activity. 27% of private company issuers have communities of 500k or more, driving investment advocacy. Additionally, 25% of issuers aim to raise up to $5 million in 2023, while 24% are looking to raise between $5-10 million. Furthermore, 66% of respondents had less than 20k committed within their community.
The survey results also show that over 80% of private companies looking to raise capital would consider equity crowdfunding, compared to 55% for venture capital. 92% of investors would consider investing in private companies, compared to 78% in publicly traded companies. 84% of private companies surveyed are looking for new ways to monetize their assets for investors and employees, such as Alternative Trading Systems (ATS) for secondary trading. Moreover, 98% of respondents believe that secondary trading is crucial for the future of private securities, and 86% believe that better regulation is essential for private securities markets.
The top three areas where respondents feel safest and where secondary markets are most applicable are private equity/single issuers, real estate, and cryptocurrencies, NFTs, and other digital asset fractions. The top three industries for investment in private stocks were technology, media, real estate, construction, and healthcare. While 92% of investors said they would consider investing in private companies, 78% said they would do the same in publicly listed companies, and 72% in stocks. 47% of investors had already tried cryptocurrencies or other digital securities such as NFTs.
The top three challenges for investors were accessing investment quality in private stocks, tracking and monitoring progress, and finding easier monetization options. More than 80% of private companies said they would consider equity in raising capital, compared to 55% for venture capital. The top three factors behind respondents’ investments were high capital growth, recurring income, and safety/low risk factors. 34% of investors said their portfolio would be focused on private securities.
The top three challenges identified by issuers and industry partners are navigating the regulatory process, building a community, and finding the right partners for capital raise. 86% of all respondents believe that regulations and advancements in private securities markets are essential for the future. In conclusion, the survey data highlights the growing importance of NFTs, cryptocurrencies, and private securities in the private capital markets, along with the need for strong community engagement and effective regulation.
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