Crowdfunding provider acquires financial advisory firm
A recent technology acquisition may eventually lead to a path by which new startups can access capital from more sources than ever before.
According to a press release on Market Wired, crowdfunding technology provider InvestedIn recently announced that it has acquired My New Financial Advisor (MNFA), which offers "scalable marketing resources to financial advisors and financial intermediaries worldwide."
The idea is that financial advisors who typically deal with more traditional manners of investment will be able to offer their clients something different and potentially groundbreaking. From there, advisors can be available when their most successful clients need advice on how to manage their money.
"In the competitive financial services industry, financial advisors need to think outside the box and look at value-adding tools and resources for prospective clients like venture capital firms and the executives of promising start-ups," Frank Troise, founder of MNFA, said in a statement. "We are providing financial advisors with a way to acquire more wealth management accounts at the beginning of the wealth acquisition lifecycle."
Crowdfunding is certainly an outside-the-box proposition. Rather than rely on investors to provide them with startup capital, small businesses that turn to crowdfunding can ask thousands of potential customers to make small investments in return for a product or service. Though the website Kickstarter is among the most popular of all the crowdfunding platforms, it is not alone.
Both sides should benefit tremendously from this deal. InvestedIn can offer the services of MNFA as an incentive to its own clients. Meanwhile, MNFA can reach out to startups and the individuals who are funding them and search for those who wish to become clients.