The independent research survey on private capital markets, among others, yielded excellent results for crypto and NFTs. Which ranked among the best options, according to respondents, where secondary markets are most applicable.
The survey was conducted by The World Digital Foundation in association with Crowdfund Insider and includes questions and data on equity crowdfunding, venture capital, NFTs, secondary trading and private equity.
The resulting survey data: good for NFTs and crypto
Based on the findings of the independent research survey conducted by The World Digital Foundation, the key company promoting digital transformation, and Crowdfund Insider, it is worth analyzing some of the data that came out.
First, it is important to note that 78% of issuers and industry partners said that having an engaged community brings commercial value for their business activity.
Then, 27% of private company issuers had communities of 500k or more driving investment advocacy. 25% of private company issuers reported that they were aiming to raise up to $5 million in 2023. 24% reported between $5-10 million.
In contrast, 22% were looking to raise up to $75 million more this year. 66% of people had less than 20k committed within their community.
Then, analyzing the results we can see that over 80% of private companies looking to raise capital would consider equity crowdfunding, compared to 55% for venture capital in the future when raising capital.
In contrast, 92% of investors who responded would consider investing in private companies, compared to 78% in publicly traded companies.
84% of private companies surveyed would look for new ways to monetize their assets for investors and employees, such as Alternative Trading Systems (ATS) for secondary trading.
In addition, 98% of respondents believe that secondary trading is vital for the future of private securities, and 86% of respondents believe that better regulation is vital for private securities markets.
Focus on Non-Fungible Tokens, Cryptocurrencies, Private Securities, and Investor Challenges
As anticipated, the top three areas where respondents said they feel safest and where secondary markets are most applicable are: private equity/single issuers, real estate and cryptocurrencies, NFTs and other digital asset fractions.
In addition, again analyzing the survey results, it can be seen that the top three industries for investment in private stocks were: technology at 93% and media, real estate and construction at 74% and healthcare at 61%.
Then, while 92% of investors responded to the survey saying they would consider investing in private companies, 78% said they would do the same in public listed companies and 72% in stocks.
Importantly, 47% of investors had already tried cryptocurrencies or other digital securities such as NFTs.
In addition, the top three challenges for investors were: accessing investment quality in private stocks, tracking and monitoring the progress of private stocks, and thinking about an easier monetization option for investments.
More than 80% of private companies responding to the research said they would consider equity in raising capital. This compared to 55% for venture capital in the future when raising capital.
In addition, the top three types/factors behind respondents’ investments were: high capital growth and investment growth, recurring income, and safety/low risk factor. So, 34% of investors said that their investment portfolio would be focused on private securities.
Finally, the top three challenges identified by issuers and industry partners are: being able to navigate the regulatory process, building a community, and finding the right partners for a capital raise. 86% of all respondents said that in the future of regulations and advancements in the private sector, securities are vital.