4. Supporting project leaders in the legal and financial structuring of fundraising
The rise in the maturity of the crowdfunding market has led to evolution like the platforms. While crowdfunding remains their core business, expertise is also developing around this core business simultaneously. The role of crowdfunding platforms no longer consists solely of putting project owners and investors in touch to raise funds. Today, a different intelligence and approach are developing," explains Léo Lemordant. Project leaders no longer come to us just to raise funds to supplement their funds such as obtaining a bank loan. They come to us for a more global structuring of their fundraising. We advise them on the most appropriate set-setup their project. Thus, the platforms now tend to position themselves as advisors to project holders.
5. Addressing a variety of investor types
On the investor side, platforms are also moving towards an advisory approach. As fundraising volumes are more substantial, the challenge is to mobilize various investor types to cover the different investment logics. By mobilizing all types of investors, with adapted approaches, the collection objectives are achieved. Platforms must therefore offer an interesting value proposition to investors, whether they are small individuals or large fortunes.
6. Improving the investor experience
For investors to entrust their money to fund projects, platforms must ensure a smooth and seamless experience. Also, the experience of investors is paramount in the field of participatory financing. If the platform does not inspire confidence or is complex to use, investors will not dare to make loans. They will then turn to more traditional channels to invest their money. Crowdfunding platforms must therefore be user-friendly, smooth, and secure. This is the only way to win the hearts of investors and avoid any reluctance on their part.
7. Standardize financing from PEA and PEA-PME
Following the PACTE law, platforms were able to offer investors the opportunity to fund projects with their PEA and PEA-PME passbooks. Léo Lemordant explains: "While the PEA is primarily designed to invest in large, listed companies -but not exclusively-, the PEA-PME was created specifically for non-listed companies and to finance the SME fabric. Our offers are regularly eligible for these accounts. Investors can then ask to pay from their PEA and PEA-PME passbooks and thus exempting the interest from tax. This is a great opportunity, but it raises concerns about structuring and alignment between all the players in the management chain. As we move upmarket with our platforms, we would like to offer this booklet to stimulate investment and increase customer satisfaction. But for this to happen, there is a real challenge of standardization that needs to be addressed. Banks, platforms, and intermediaries must come up, I hope soon, with a standardized process that will facilitate the processing of this type of subscription." While discussions are currently underway, this alignment issue represents a major challenge for the crowdfunding sector.
8. Automate and delegate a maximum of operational tasks
Beyond standardization, one of the major challenges for the entire crowdfunding ecosystem is the automation of platforms. "Crowdfunding in 2021 will no longer resemble that of 2012-2013. Today, the professional dimension of the platforms is developing, and crowdfunding is perceived as a really attractive savings product, and no longer as a nice but accessory innovation," analyses Léo Lemordant. Because they are managing more and more loan volumes, more and more projects, and more and more investors, crowdfunding platforms are starting to professionalize their processes. However, this development requires efficient systems, automated reconciliation, good management of repayments... As such, it can be interesting to automate and delegate a maximum of processes, such as financial operations. Compliance, maturity, experience improvement or process automation, payment systems cover various important issues for crowdfunding platforms.
Aware of their importance, Lemonway supports platforms in managing their payment flows. As a Payment Service Provider, we offer a wide range of services to adapt your platform to the evolving crowdfunding ecosystem.
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