Weekly Newsletter – January 11, 2026 -

January 11, 2026 — This quarter’s financial landscape reveals three interconnected trends reshaping capital formation and investment access. As private markets open to retail investors through new vehicles and platforms, we’re simultaneously seeing record growth in crowdfunding — particularly in Israel — while research highlights the crucial role of trust in scaling these alternative funding channels. These developments create both opportunities and responsibilities for financial firms, platforms, and advisors.

Retail Access to Private Markets — Trends, Risks and Near-Term Priorities

Private-market access for retail investors is accelerating — driven by fintech entrants, new fund structures and policy changes — but it brings distinct distribution, disclosure and liquidity challenges firms must address now.

What’s driving expansion:
– Fintech and product launches broaden distribution: Robinhood’s Robinhood Ventures Fund I is an explicit push to “democratize access to private markets” for individual investors. Source
– Policy and benchmarks are changing the landscape: a 2025 executive order opened the door for 401(k) plans to consider alternative assets, while the Morningstar–PitchBook Modern Market 100 creates a public/private benchmark that helps frame this opportunity. Source Source
– Retail flows and FOMO: significant retail interest — amplified by high secondary valuations (e.g., OpenAI) — is creating large inflows and potential timing risk for new retail entrants. Source

Principal risks for retail investors and firms:
– Information asymmetry and valuation opacity: private companies disclose far less than public issuers. Source
– Illiquidity and horizon mismatch: long lock-ups (often 5–10+ years) can clash with retail liquidity needs. Source
– Fees, complexity and suitability: higher fee structures increase risk of unsuitable recommendations. Source

Operational responses to prioritize now:
– Match vehicle to channel: consider registered/permanent-capital structures when marketing to retail. Source
– Invest in advisor enablement and plain-language disclosure: large-scale RIA adoption requires education and support. Source
– Strengthen suitability, valuation and liquidity governance: enhanced valuation policies and gate design reduce risk. Source

Israel’s Record Crowdfunding Surge

Recent reports indicate a notable surge in both investment and donor-driven crowdfunding tied to Israel. According to JNS, Israeli tech fundraising reached $15.6 billion in the latest cycle, with July 2025 alone posting a record monthly raise of about $550 million—driven in part by large debt financings for energy startups. Source At the same time, Ynet reports Israelis gave 432 million shekels through the digital platform Charidy in 2025, a 37% increase year-on-year. Source

Why this matters for business leaders:
– Capital mix is changing: More companies are using non-equity capital to scale—an important signal for CFOs and treasury teams.
– Digital donor channels are maturing: Individual giving via platforms is scaling rapidly, increasing the importance of digital fundraising strategies.
– Reputation affects access to funds: High-profile campaigns can accelerate inflows but also raise expectations for transparency.

Practical next steps:
– Investor relations: Monitor rising use of debt in private financings and stress-test repayment scenarios.
– Fundraising teams: Invest in user experience and transparent reporting to convert one-time backers.
– Risk & compliance: Ensure platform contracts and donor-privacy controls scale as digital volumes grow.

Donor Confidence in Crowdfunding: Evidence and Practical Steps

Research reveals significant trust barriers in crowdfunding platforms that limit potential growth. An AP-NORC poll found only about 44% of U.S. adults are at least “somewhat” confident crowdfunding sites charge reasonable fees, and only roughly 1 in 10 are “very” or “extremely” confident that campaigners both need and responsibly use raised funds. Source

Drivers of donor behavior:
– Emotional appeal, perceived impact and trust in the organizer/platform are primary motivations. Source
– Platform credibility significantly influences millennials’ intention to donate on crowdfunding sites. Source

Practical actions platforms and fundraisers should prioritize:
– Publish plain-language fee breakdowns and receipts to reduce perceived “hidden” costs. Source
– Implement verification and outcome reporting using documented receipts and follow-up posts. Source
– Display third-party endorsements, media coverage, and platform ratings prominently. Source
– Consider auditability features such as immutable transaction logs or third-party audits. Source

Sources

As we navigate 2026, these three trends create a clear imperative for financial services leaders: trust, transparency and appropriate product design are no longer optional but essential for scaling alternative funding channels. Firms that prioritize disclosure, governance and education will build sustainable advantages as capital formation continues to evolve beyond traditional models. The democratization of investment access presents tremendous opportunity, but requires careful attention to investor protection, suitability and long-term alignment of interests across platforms, advisors and end investors.