The discussion also discusses the crowdfunding for equity in the U.S. versus that of the crowdfunding for debt. While most of the excitement in the startup and financial industry surrounds the equity-based capital raises, Hodges feels that the market for debt has more potential.
"Equity, by nature, is a longer-term investment product than debt--in most cases," Hodges said in the interview. "Most of the equity crowdfunding platforms out there are about an investor putting an equity check into a company and then hoping over its lifetime that investment does really well. That's challenging because it means you have a lot of time between when someone needs to write a check and if and when that investment is actually monetized. Debt is a completely different game."
Most Popular Stories
- E.U. Puts Sanctions on Russia, Ukraine Officials
- Microsoft Releases Free OneNote for Mac
- Crimea Seeks Financial Integration With Russia
- Apple, HP, Intel May Take a Hit from Slowdown in Smartphone Sales Growth
- Jack Daniel's Resists Changes to Tenn. Whiskey Law
- Homebuilders Show Rising Confidence in Market
- Chile Shaken by Major Aftershock
- Obama Imposes Sanctions on Russian Officials
- Some California Cities Seeking Water Independence
- 'Walking Dead' Takes a Shocking Turn: Recap