University Research Project
CrowditBuildit started as a concept in a University. The focus was on research in crowdfunding, specifically into equity based crowdfunding using a form of 'mini-bond'. This was constructed specifically protect investors money. The idea was that in some contexts (e.g. property development), an asset can be made to grow quicker than that invested. Thus forming a securitisation system. This was a fundamental system desgin.
The concept developed into a research project to test this hypothesis.
Not long prior to the commencement of the research project, ‘equity based crowdfunding’ was debated in the House of Commons in the UK, and was considered to be a very real alternative to traditional forms of bank finance…
“Right now I think there is a huge opportunity in the alternative finance market to make everything more transparent, faster and easier…”
The idea of ‘equity based’ crowdfunding was considered appropriate because there is equity (i.e. ‘value’) in a property development ('the asset'), e.g. the land, the planning permission, the materials bought, properties at different stages of construction etc.
Anil Stocker, reporting to the House of Commons 2015.
The research project undertook both systems and statistical modelling to demonstrate how the equity in a given property development might be used to securitise the pledges made by a ‘crowd’.
The project ultimately designed a system of finance. It also had to design associated business systems, e.g. the process of construction, processes of supply and supply chain management.
Research in Crowdfunding - as Action Research
The research for the first building project was undertaken as an ‘action research’. This means that the full implementation of a whole set of designed systems had to be undertaken and applied, and lessons learned. These lessons helped to improve the systems designs.
- There are some important implications for UK government policy. For instance, it is perfectly possible to see more homes being developed using the same Equity-based Crowdfunding System. If you are reading this from a local government authority, or from a central government department, maybe you could get in touch with us to discuss why we might argue that this is genuinely a possibility for helping with the housing crisis in the UK. We are a friendly bunch!
- Also, there are implications for the way Universities undertake research in certain key areas (e.g. in their business schools). Perhaps there are lessons that Universities can learn as they strive to make positive social impact??
Please note that we are not able to provide investment opportunities to retail investors at this time.