US Crowdfunding gets a Transparency Boost

Crowdnetic, a provider of technology and market data solutions to the alternative finance space in America, has announced the launch of CWMarketdata.

CWMarketdata will make data downloads available from over 4,000 active and closed small business crowdfunding profiles (506(c) offerings) across a wide range of leading crowdfunding platforms. Crowdnetic has been using CrowdWatch, its Crowdfinance Data Platform since the end of September 2013 to collect data. It started doing this after Title II of the JOBS Act was passed, which allowed general solicitation, and meant that many crowdfunding platforms opened in the US.

Data will be available to institutional and retail investors as well as any other interested parties. Monthly membership to CWMarketdata costs $249 per month. Alternatively there is a pay-as-you-go option, which costs $199 per download.

Luan Cox, Crowdnetic CEO and Co-founder, commented:

“One of the founding beliefs of Crowdnetic is that clarity and ease of access to data are essential for the crowdfinance ecosystem to prosper. We are excited to offer this product as part of our continuing commitments to bringing transparency to the crowdfinance marketplace.“

CWMarketdata adds another layer to CrowdWatch’s website which already offers real-time market data. And it allows investors to gain access to in-depth information such as quarterly data research reports.

The general transparency of the alternative finance industry is something that is often talked about. Calls for platforms to steer clear of the ‘black box’ approach – obscuring their processes from investors and borrowers – are ringing out across the space. The onus is on the platforms to continue to be open about their activities and to work with organizations like CWMarketdata. Today’s news is another encouraging step in the right direction.