The second annual Benzinga Fintech Awards is coming to New York City on May 24. In anticipation of the premier gala for financial technology, we’re introducing you to the companies that will be in attendance. For more information on submitting your company, voting for the finalists, or attending the event, click here.
Benzinga: What do you think makes your offering unique in the fintech space?
CFX: CFX is the first and only secondary market for crowdfunding investments. The JOBS Act in 2012 legalized equity crowdfunding, however the lack of a functioning secondary market has forced crowdfunding investors to be stuck in their positions indefinitely. We’ve created an online platform where investors can easily sell their shares to other investors in an open and secure fashion. SecondMarket was a competitor we had an eye on, however with the recent acquisition by Nasdaq they have signaled their focus on pre-IPO companies and not on alternative assets such as crowdfunded assets.
Benzinga: What’s one thing you want users to remember your company by?
CFX: We want users to remember CFX as the place to go for liquidity in their crowdfunding investments.
Benzinga: What drives you to get up every single day and work on your business?
CFX: We want all Americans to have access to the same types of elite institutional investments that the 1% has had for decades. The JOBS Act has brought great investment opportunities to people online. Title III, which takes effect in May 2016, will allow all investors (including non-accredited investors) to participate in equity crowdfunding. However, the current lack of liquidity makes it a difficult investment option for retail investors. We aim to change that.
Benzinga: How do you help people make money?
CFX: We provide the option of liquidity for investors who want and need to exit their investments early. We believe this will expand the pool of crowdfunding investors, and incidentally, make more capital available for entrepreneurs and real estate professionals.
Benzinga: What’s the biggest challenge to your company going forward, and how do you plan on overcoming it?
CFX: The challenge will be adding top crowdfunding portals to the CFX marketplace. We just announced the addition of EarlyShares, a top 10 real estate crowdfunding platform, to the CFX marketplace, and we expect to announce the addition of some larger portals over the next several weeks and months.
Benzinga: What are you looking forward to most about the Benzinga Fintech Awards?
CFX: We’re most excited about the opportunity to meet and develop relationships with top industry leaders in the fintech and financial services industry.