Alternative investment platforms theoretically enable global access to investments, both in terms of access to investment information as well as opportunity. However, alternative investments are subject to a variety of barriers that limit ubiquitous access. First, as mentioned earlier, certain platforms will require investors to be accredited, sometimes even if one is investing from a different country. Second, certain platforms restrict investment based on geographical components, such as citizenship, which limit the breath of available investors for the fund, and limits the options for investment around the world for investors.
As an extension of this idea, some platforms only offer investments from a certain country or region, which can be beneficial if an investor is looking to get access to opportunity outside of his or her home market in order to diversify. That said, be sure to ask “how large is this market” when looking at a platform. A fun example would be the platform Milk Money (https://milkmoneyvt.com/), which provides “neighborly” capital to local businesses in Vermont. Even if the platform gets traction, the realm of available investments – in terms of number, size, and consistency of new opportunities – will be limited by geography.
Also note that, though US alternative investment platforms operate under the passage of Dodd-Frank, those investing in international investment platforms may need to be wary of local jurisdiction and regulatory stances. You can generally get a basic understanding of important regulations by going through a site’s FAQs or informational resources.
