CFS

The future of modern finance has arrived in Brazil from the United States: CrowdFunding Select.

After the near global economic collapse of 2008 showed the world of the inherent weakness of the banking and financial sectors, innovative entrepreneurs began to contemplate how some of the opportunities of the financial markets could be spread and diversified away from a few large institutions.

The traditional model was always that depositors would put their savings into banks and then banks would lend money out or seek investments for themselves using the capital of others.  Once it became clear that the banking system was not invincible, many began to question the need for these large financial institutions anymore.  If banks are not able to manage their risks effectively while successful individuals who had always made deposits into these institutions were, then it would make more sense that those individuals should begin to seek other outlets for depositing and investing their own money.

A group of entrepreneurs began to ask what it would do to the traditional financial system if they were able to use the Internet to pool investment ideas and investors who were interested in funding those concepts.  The balance of power between those looking for funding and those seeking creative investments would be leveled and neither side would need to work through costly financial intermediaries to find the information they need.

Thus is born the concept of crowdfunding: the use of capital from multiple individuals or entities to finance a new venture.

In the past two years, crowdfunding has more than tripled in growth in the United States to a current market of $5.1 billion.  Apart from the explosive growth in the United States and the United Kingdom, crowdfunding has begun to emerge in other regions such as Latin America as well; however, the market remains relatively small.  The geographic diversification has been accompanied by the utilization of more financial products to facilitate funding efforts, from loans to equities to charitable donations.  Crowdfunding has also expanded into various asset classes, including corporate, real estate and banking.

Despite the attempts by a few ambitious entrepreneurs to innovate in this space in Brazil, no one has been able to effectively navigate the legal and regulatory frameworks to develop a platform that really works for Brazil.  Until now with CrowdFunding Select.  The founders of CrowdFunding Select have extensive Wall Street experience, more than thirty years of experience in due diligence, auditing and compliance and more than twenty years of combined experience in owning entrepreneurial ventures both in the United States and in Brazil.  The platform has been developed with the insights of domestic and international legal and accounting teams who specialize in international investing and the Brazilian financial sector.

CrowdFunding Select is a fully integrated online portal that allows both investors and companies looking to raise capital to come together and complete equity transactions using a rapid, informative, automated site.  The platform allows for both investors and companies to search for what is most pertinent to their needs and e-mails can be sent automatically to participants with new listings and information, should they choose to receive them.  Online videoconferences, chats and discussions are moderated on the site to facilitate communication and due diligence between investors and those looking to raise capital. The barriers to entry for international investment in Brazil have always been higher than in some other major markets.  On top of that, the recent economic slowdown in Brazil has resulted in fewer financing options for companies but it has also created many opportunities for investors.

CrowdFunding Select. has streamlined the process such that investors from all over the globe will be watching and can participate in the investment opportunities available on the platform.  Investors become direct equity owners in the companies in which they fund and at times, may even participate in management.  Those looking to raise funds can transform their businesses and their lives by finally receiving the capital that they need to grow their ventures, without paying anything in fees or interest rates or accumulating debts.

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