3 Things to Consider When Launching a Real Estate Crowdfunding Platform

Launching a digital finance portal for the first time can be difficult. From our experience, we understand there are many moving parts to this venture so, at a high level, we have outlined the main considerations when starting such an undertaking. 

1) Resourcing

This will be the most important area both pre and post launch of your real estate crowdfunding portal. Resourcing for the venture can be broken into two categories a) Internal and b) Monetary. Using the Crowd Valley framework our clients have successfully entered the market varying degrees of each.  
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2) Regulation

Regulation is beyond the scope of a platform operator’s control but it's a fundamental aspect to be aware of. Working through and setting up a regulated portal will require significant time and resourcing and, depending on where the platform is based/launched, specific regulation addressing crowdfunding may or may not have already been drafted, requiring the platform operator to use existing securities or banking laws.

3) Ecosystem

The crowdfunding ecosystem will be directly influenced by which regulatory body you are working under. The US, UK and EU have strong ecosystems to support the automation of payments, compliance, document management and external data sources (to help with such areas as underwriting). Each country tends to have their own bespoke requirements for the above.

Crowd Valley (a Grow VC Group company) is committed to future changes in digital finance with a proven track record in helping our clients identify opportunities and enter new markets in a meaningful way. If you are looking for more insights and best practises to capitalise on collaboration within the fintech space, get in touch with Crowd Valley.

Read the whole article and more details on Crowd Valley News.