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Video: Broadhaven explains how tech will take VC mainstream

Michael Sidgmore talks about the fintech space and how technology is changing the private markets.

Technology is driving a revolution in venture capital access that could see individual investors increase their participation in the asset class, says Michael Sidgmore, partner and co-founder of fintech-focused Broadhaven Ventures.

“I think we’ve seen this evolution—whether it’s been into funds, into startups—where people are now able to access alternative investments because of the infrastructure that’s been built and the regulatory component that’s been unlocked in the US with Regulation CF, enabling nonaccredited investors to invest into startups directly with low minimums,” said Sidgmore, speaking with PitchBook at the sidelines of the Web Summit tech conference in Lisbon, Portugal.

Sidgmore—who has invested in startups including Coupang, Klarna and Forge—noted that individual investors and wealth managers still invest relatively small amounts into alternatives with an average allocation of 1% to 5%, versus the 25% to 30% you might see with large institutional investors. However, that is likely to change over time thanks to new technology and the proliferation of platforms such as iCapital Network, Coinlist and Republic.

He added: “I think a lot of these platforms are enabling this access and there may have to be kind of recalibrations of what people invest in. So people may invest more into something like private credit in a current market environment than they do into an early-stage venture, say, but it’s still going to make the private markets go mainstream as you have more people allocating dollars to private markets.”

Featured image of Michael Sidgmore by Piaras Ó Mídheach/Web Summit

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