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Emerging Crowd announces new investment platform

Thursday 14th August 2014

A UK-based equity crowd investment platform aimed at unlocking the huge growth potential of strong, well-managed companies in emerging and frontier markets is soon to be launched by Emerging Crowd, a recent announcement stated.
The platform, set to go live in October 2014 once FCA authorisations have been put in place, will seek to provide ordinary investors with direct investment opportunities in individual growth stage companies. This will be done through a secure, risk-managed and cost effective online process.
Reportedly, there are 3 million ‘DIY investors’ in the UK, a number that is predicted to rise to 5.5 million by 2017. Emerging Crowd hopes to give this self-empowered community the opportunity to explore new and exciting markets through their investment choices.
The Co-Founders of Emerging Crowd, Lucien Moolenaar and Will Tindall, have both spent many years working on cross-border fundraisings in emerging and frontier markets. From this, they found that even profitable, well-managed companies often struggled to access private capital and that chances to invest in these growth stage companies were limited.
“For established growth companies in emerging and frontier markets, traditional cross-border fundraising models often fail to provide the necessary transformational capital,” Lucien Moolenaar said. “Even the best companies are not adequately served by conventional banking and
brokerage models. We have created Emerging Crowd to bridge this gap, so that investors can discover and invest directly in growth stage companies from around the world.”
The pair, spotting that crowd investment had revolutionised the marketplace for startups and early-stage companies in developed markets, believed that this technology could also bring much needed agility and transparency to later-stage emerging and frontier market investing. A recent report by the World Bank has claimed that crowdfunding in developing countries could grow to £50-55 billion over the next two decades.
“New technologies are greatly enhancing private market efficiencies,” Will Tindall adds. “Emerging Crowd offers the potential for a major overhaul of a largely institutional framework for allocating capital to companies in emerging and frontier markets. It provides the possibility of leapfrogging the inefficient legacy systems prevalent in the developed world and opening additional sources of funding to these undercapitalised markets.”
Companies seeking to raise capital through the platform must fit certain criteria – they must already have strong financial performance and growth prospects, alongside an experienced management team, strong corporate governance and near-term liquidity options.
Headquartered in London, Emerging Crowd will at first focus on selected emerging and frontier markets in Sub-Saharan Africa, Central Asia and South-East Asia, especially those countries that have shown economic and political stability, a reliable investor protection framework, legal and regulatory certainty, transparency and market integrity.

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Editorial Contact Details - Conor Shilling
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