Alternative Investments Platform

  • Hey everyone, over the last years I have built up a portfolio of alternative investments. I currently have investments on lending club, prosper, seedrs, cadre and many more homepages in asset classes like crowdfunding platforms, real estate and real estate funds, PE/VC funds etc. Every time I want to invest through a new homepage I have to go through the sign up process again. It is also very difficult to manage my portfolio on all sites together. I was looking for a solution and couldn’t find one and am thus considering building one.

    This is what I think it should be able to do:

    • Search for investments on all crowdfunding platforms (i.e. if I want to buy property in New York what platform offers this and what deals do they have right now)
    • Make investments through the same platform without having to do KYC/AML/accreditation every time
    • Get a unified view of my alternative investment portfolio. Potentially get recommendations on how to build my portfolio i.e. if you have real estate in New York you should consider getting property loans in region xyz to diversify

    Does something like this exist? If not would this be something useful? anything else you think is missing?

    Thanks for your input!

  • Funding Societies

    This is a very interesting question! I have been looking for a tool like this myself. @Alexander-Clapp Do you only invest in American platforms ?
    Would be happy to collaborate if you are planning to build one! Will be pretty useful for everyone in the community too! :)

  • If there is one, I would be interested as well.

    But sadly I don't think there is, at least from what I know. This is due to many reasons but I believe mainly is because it doesn't make business sense. I'll use some examples of existing solutions for other products that had similar issues.

    Traditional Investment Vehicles

    StashAway would be a good example as it offers multiple types of investment vehicles (i.e. bonds, stocks, funds, etc.). But there's not really much customization that you can do as they only offer products that have successfully negotiated with the issuer to get better than market rate using economies of scales.

    Then also they will charge users a fee for their services I believe so that will eat into your returns.

    This will be quite hard to implement as it needs, as I mentioned, economies of scales. And then you need platforms to actually be willing to work with you. Then lastly, regulation, because you mentioned that you're looking at cross border investments as well.

    Credit Cards

    Credit Cards are similar to some extent but it's different in nature but I would like to include this as well.

    There are now more and more comparison websites that allow users to compare and apply for Credit Cards from their website. But when they do apply, it goes back to the card issuer and the banks themselves have to go through their own KYC/AML process.

    So, most of the people applying are attracted to the additional incentive (i.e. gifts, vouchers, etc.) for them to apply via that website. Because if I have to go through the same process as if I'm applying with the Bank myself, why do I want to go through an agent if there's nothing for me to get out of it?

    But this comes down to the core question, why are they able to give so many free gifts and still make business sense? My guess is the commission is quite lucrative. And why can the banks pay such high commissions? They get tons more potential return from selling the Credit Card, which is very different from an investment platform provider.

    Let's put this into investment platforms context. There are so many alternative investments and there's much more variation as compared to Credit Cards. So even if you do manage form a methodology to properly categorize these investments and allow them to be compared, why would those platforms work with you?

    Since if you want this to make business sense, you must get something out of building this type of sites (i.e. commission from platforms, etc.), but then in return this results in lower returns for investors who invest through you. Why? Because where else will the commission be taken out of?

    So yea, just some scattered thoughts about this issue but I believe it all comes down to if it makes business sense.

  • Funding Societies

    @Alexander-Clapp there are some tools in the EU market which provide this sort of service. Like lendingrobot.

    But none so far in SEA. Why don't you build one! ;)

    you do it

  • Community Manager

    @Alexander-Clapp How's it going! Managed to get more leads on this?


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