This article dives into the transformative role of mobile apps in capital formation, particularly for startups and entrepreneurs. It underscores how these cutting-edge tools are opening up investment opportunities and driving the growth of businesses.
Let’s discover how mobile apps and capital formation are closely linked. It’s a relationship that changes the game when it comes to getting funds to expand or improve companies in different areas.
First insights
Small businesses are strong contributors to a country’s economy. This fact was recognized by President Joe Biden in his State of the Union address in February 2023, where he emphasized the importance of domestic growth and assured their continuing work on providing new startups with the capital they need. Small businesses contribute to almost half of the world’s GDP.
Getting easy access to investors will help small businesses and startups who apply for business funding in the current market. With the support of the government and changes like increased taxes on capital gains and a boost in infrastructure spending, the domestic market is on the uprise.
This growth can be increased further with the integration of technology in the capital formation process. Online capital formation is a smart and efficient way of raising funds via digital platforms. Creating mobile apps for this purpose takes capital raising to the next level in terms of advancement and accessibility. It helps new entrepreneurs utilize the full benefits of online capital formation at their fingertips.
Benefits of capital formation online
Online capital formation is the process of raising funds from investors through JOBS Act regulations through a digital platform. Companies can use exemptions from SEC registration, such as Reg A+ and Reg CF, to access a larger investor pool that goes beyond private equity firms and venture capitalists.
The USP (Unique Selling Proposition) of online capital formation is its accessibility for anyone, independent of their net worth or accreditation status. In 2022 alone, companies benefited from over half a million investments through this medium.
Online capital formation has many benefits for entrepreneurs and investors.
- It provides access to a larger pool for investors.
- It is transparent and allows investors to reduce risks by providing detailed information about a company.
- Online capital platforms offer a lower cost of capital by charging lower fees than traditional private equity firms.
Online capital formation has proven to be a very successful method of raising capital. However, the introduction of mobile apps can lead to a new revolution in the private markets.
Mobile Apps for Capital Raising
Everything has gone mobile nowadays. From shopping to banking, mobile apps make all tasks easier, quicker, and more accessible. With the arrival of mobile apps for online capital formation, the economy and private markets are bound to see significant changes.
For instance, the KoreID Mobile App, launched by KoreConX, works as an online passport for investments. It is free and available on Android and iOS. Simply by creating an account on the KoreConX All-In-One Platform, a user can access their personal dashboard, personal and company portfolio, and reports on pending investments.
With such a mobile app, you can:
- Manage current and pending investments
- Re-invest in companies when an offering is open
- Stay updated on company news releases, reports, meetings, etc.
- Manage your personal information
All this is done in a secure and compliant way. It , forges strong shareholder-company relationships and allows both parties to communicate in a transparent way.
A mobile app for online capital formation makes it more convenient for users to browse investment opportunities.
Conclusion
The private markets are much larger than their public counterparts. A mobile app will make navigating this market easier for retail investors who are eager to participate in private markets and willing to take greater risks for greater returns.
For companies, mobile apps such as KoreID offer easier visibility into your company, allow regular updates on performance, returns, and holdings, ensure security and compliance, and make your investment platform device-independent.
The goal of a mobile app is to increase accessibility and ease of use, which has a direct positive impact on the engagement of investors in companies. More businesses are expected to explore private funding if the technology is feasible for them. This is one giant step towards integrating technology and finance in a way that both the capital-raising companies and their investors find each other easily and continue to build a relationship.
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