In a recent article from the Business Journal of Midcentral Illinois, Julie Shields, director of Millikin University's Center for Entrepreneurship, shared details on a presentation from a guest visitor to Millikin's campus, a futurist by the name of Michael Rogers.
"Among the interesting facts mentioned were that the Midwest is the fifth largest economy in the world and industries that deal with molecules (stuff) as opposed to electrons (tech and services) are less susceptible to upcoming disruptive changes. In between the lines the subtly mentioned AltFin as an industry-driving disruption," Shields said.
In April 2016, the University of Chicago's Polsky Center for Entrepreneurship and Innovation, Cambridge University and a handful of other contributors published Breaking New Ground, a benchmarking report specifically on AltFin in the Americas. The report highlights the growth in the alternate finance industry from 2013 to 2015.
"Essentially, it's a baby book for the AltFin industry in the United States, Canada, Chile and other emerging American markets," Shields says. "During that time frame, AltFin financing represented $50 billion in total transactions. From 2014 to 2015 it grew 212 percent, from $11.68 billion in 2014 to $36.49 billion."
While entrepreneurs can get funding through a variety of means, even if local or traditional funding options seem too restrictive, having time to wade through all the options can be paralyzing according to Shields.
"Is alternate financing here to stay? It’s hard to say," Shields said. "However, if the trend in the UK is any indication, where 46 percent of all funding is going through AltFin vehicles, then at some point the 'alternate' descriptor might need to go away for something more accurate like popular financing."
Click here to read more in an article from the Business Journal of Midcentral Illinois.