[wtvanhest]

I am currently building a peer to peer finance platform and I have had the opportunity to talk to a large number of market participants. We are in the honeymoon phase of peer to peer finance (crowdfunding/crowdinvesting) where investors are simply excited to have access to investments that were impossible at the minimum invested dollars offered today.

In order for the market to expand beyond early adopters, platforms will need to focus on providing transparency, risk controls and most importantly removing moral hazard where possible.

Moral hazard is the biggest issue right now as investors in most crowdfunded transactions have highly divergent financial goals from the people they are investing money in and the platforms facilitating those investments.

Solving that issue will be the biggest challenge for the industry and the one that I believe will really help it grow beyond the early adopters.