By KATHLEEN SWEETERThe year of the fund manager may be drawing to a close, but it’s still too early to know how much money has been raised by the industry’s top players, according to research by Credence Resource Management, the largest provider of equity crowdfunding.
The firm said on Tuesday that it had raised $2.8 billion for its fund manager service since the end of the year, and more than $5 billion in total in the past 12 months.
The investment firm says it’s raised $5.5 billion from more than 20,000 investors since the start of 2016.
Credential Resource Management says it raised $1.5 trillion in total for its online service, which allows investors to buy and sell financial products.
That’s more than double the amount raised by firms like Amazon, Facebook, Netflix, Netflix stock and Google, which have each raised more than the $1 billion total raised by Credo in the same time frame.
Credo’s chief executive, David S. R. McElroy, says that the company has made significant strides in increasing returns over the years.
“The number one thing we’ve done is have built our technology and our product portfolio to allow our customers to be able to invest in the stocks that are really going to work for them,” McElry said.
The company has raised $6.8 million from more and more investors, but still doesn’t have a definitive answer on how much investors have invested.
It said on its website that the average investor has given it a return of 7.5% over the last 12 months, but didn’t give a specific figure for how much it is investing in its services.
“As we’ve gotten better at managing our costs, we’ve become more efficient,” McElvoy said.
“That’s the most important thing for us, and that’s why we’re continuing to invest and grow.”
The biggest surge in investment was from private equity firms, which raised an estimated $3.9 billion last year, Credent said.
Most of those funds were led by private equity groups, including Blackstone, Cerberus Capital Management, Silver Lake Partners, and Tiger Global Management.
Those funds have been increasingly investing in digital products, including crowdfunding platforms like Crowdcube and Kickstarter.
Credit says its digital services helped more than 1 million people make $100,000 or more on the platform last year.
But it says those investments weren’t enough to cover the cost of the company’s $1,000 investment in its $50 million investment fund.
Credited has also invested in more traditional equity crowdfunding companies, like Bancor and the Chicago Board Options Exchange.
The fund has raised more money from traditional investors than any other company, with an average return of 4.5%.
Credences CEO McElron said he believes traditional investors are being more cautious because of the market’s uncertainty over the future of bitcoin and other cryptocurrencies.
“What’s happened in the last year is really a wake-up call for the traditional investors, because we’re seeing some really bad outcomes from those digital currencies,” McEllrry said, noting that bitcoin is losing about 70% of its value.
“You see the bubble burst in some of those digital asset markets, and people are worried.
Credents services were the first to make the leap into the cryptocurrency space, offering investors the ability to purchase bitcoin from an online wallet. “
It’s really just a wake up call for us to get our hands around this.”
Credents services were the first to make the leap into the cryptocurrency space, offering investors the ability to purchase bitcoin from an online wallet.
Now, more companies are offering more traditional investors the option to invest, including bitcoin wallet company Kraken.