U.S.

Leads World In Burgeoning

Crowdfunding Trend
Right now the spotlight is on LendingClub that offers peer-to-peer loans of up to $33,000. Last
month they transacted $125 million with projections to lend up to $1.5 billion by year end. They
stand to double in size from 2012 and are considered the behemoth as they are triple the size of
the US second runner up Prosper; which has lent $400+ million cummulatively over the last few
years.

While the growth in 2012 funding volumes was primarily driven by both lending-based and
donation-based crowdfunding, lending grew a compelling 111% to a total volume of $1.2 billion,
and is expected to exceed $2 billion this year, said Carl Esposti, CEO of Massolution. He adds:
The growth in lending volumes mainly stems from crowdfunded micro-loans and from local SME
loans.
The report concludes that lending-based crowdfunding grew the fastest in the world and combining
LendingClubs $1.5 billion trajectory in 2013 with Kickstarters 2012 $274 million revenue (the
leading reward-based firm in the world had 230% growth in 2012) we could see these two firms
hitting north of $2 billion.
The report estimates that in 2013, 72% of crowdfunding will stem from the US, 26% from Europe
and 2% from the rest of the world. The US is clearly a leader in this space.
These are numbers that Bruce Lipnick, CEO and founder of Asset Alliance, anticipated. He
announced last week at the crowdfunding event in the Innovative Investing Symposium in Boston
at Thomson Reuters that he was entering the marketplace on a global scale through his

investment in CrowdAllianceUSA.com. Bruce Lipnick, one of the pioneers in the Alternative Wealth
Management and the Mutual Fund industry, currently manages and allocates capital through his
affiliates of approximately $1.6 billion. Bruce added: Our mission is not only to be one of the
premier companies utilizing its international contacts but to focus its effort to help the
crowdfunders have a profitable liquidity even through new and traditional avenues.
The crowdfunding industry has arrived and leading financial firms like Asset Alliance are embracing
it. We now see more considering it.

Note: This article appeared on The SohoLoft with this link

http://thesoholoft.com/u-s-

leads-world-in-burgeoning-crowdfunding-trend/ on Jul 6, 2013.

David Drake is the Chairman of LDJ Capital, private equity advisory; Victoria
Partners, a 110 family office network; Drake Hospitality Group; and The
Soho Loft Media Group with divisionsVictoria Global Communications, Times
Impact Publications, and The Soho Loft Conferences. Reach him directly at
David@LDJCapital.com.