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Rekenthaler Report

Does Crowdfunding Make Investment Sense?

It might, if there weren’t such a large information gap.

The Pitch
Recently, I encountered a company called Yieldstreet, which solicits assets through its online platform. In the lingo, it crowdfunds, by raising small amounts of money from many people via the Internet. There is a twist, though: Whereas most crowdfunders seek money for their own projects, Yieldstreet canvasses for other people. The firm serves as an investment matchmaker, connecting prospective buyers with those who seeking funding--for a fee, of course.

The company's proposition, which I cite verbatim, is as follows.