Last week it was announced that London is the world’s crowdfunding capital, based on some recent statistics published by a crowdfunding research institute, which showed that the British capital was the city with the highest number of crowdfunding campaigns launched per day. The announcement comes as little surprise, considering that the incredible growth of crowdfunding in the UK was already in the air. A very open mindset with regards to innovation and technology, on the one hand, and a prompt answer from the local authorities - that reacted to the growing phenomenon putting in place a regulation -, on the other hand, allowed British crowdfunding to flourish at very fast pace.
“Economic Crisis”. A term we heard a lot in recent years and, unfortunately, we still hear today in Europe and in the US. Yes, because the economic crisis is still a reality in many cases, especially among small businesses, one of the backbones of western economies.
In the US, an “accreditated investor” is defined as the individual who 1) had High Net Worthearned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years AND reasonably expects the same for the current year; OR 2) has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence). These criteria have not changed much since the 80’s and they currently allow about 7% of the US population to be qualified as such. However, the SEC is considering to modify the definition, potentially making more stringent the requirements, which could severely hinder US early stage finance market.
Together with the UK, Germany is the biggest market for securities crowdfunding in Europe. In fact, German platforms have been up and running for a few years now, allowing more than 100 projects to raise seed capital from crowdinvestors and reaching record-breaking sums, like the €3 million recently raised by a startup only in a few hours.
The phenomenon has been developing within the current legal framework which did not pose too stringent controls over the platforms and the issuers. Until now. In fact, the German government has proposed in the past days a draft bill which aims at increasing protection of small investors (i.e. Small Investors Protection Act).
Peer-to-peer lending in the UK is growing at an incredibly fast speed. Favored by FCA’s rules that treat peer-to-peer lending in a different way than equity crowdfunding, which is considered riskier, and by the tax discount (New ISA) which has been available since beginning of July, this new mechanism for borrowing capital is becoming more and more popular.
The crowdfunding scene in Europe is evolving fast. This year France, Spain and the UK adopted regulations for securities crowdfunding, while the European Commission officially announced its support to crowdfunding, as a valid financial source, able to help fuel Europe’s sustainable growth. In Finland, like in Sweden, the crowdfunding scene has been flourishing and active for a few years now, with more and more actors getting involved.
At the beginning of July the Finnish Financial Supervisory Authority (FIN-FSA) published on its website the guidelines for securities crowdfunding in the country, which until then has been working in different ways under to the existing legal framework.
Today Crowd Valley publishes Crowdfunding Market Report for Q2 2014, unveiling the latest trends of this fast-growing industry, as observed by the company during the last quarter.
We saw the world came together to watch the 2014 Brazilian FIFA World Cup from June 12 to July 13. As over a million fans from all over the world poured into Brazil to cheer for their home team, the Brazilian economy was injected with $15 million. However, economists cannot seem to agree whether the Cup has overall been negative or positive towards the Brazilian economy. We are asking how the World Cup has impacted the nation's crowdfunding industry.
According to recent forecasts, China is expected to become the largest economy in the world by the end of this year. What if securities crowdfunding is allowed there? And what if it happens even before Title III is released?
In April 2014, New Zealand passed a new law, granting entrepreneurs the opportunity to use crowdfunding platforms for financial lending and borrowing purposes. The Kiwis aim to be the leading nation in Asia-Pacific for crowdfunding. But unfortunately, almost 5 months after the law has been changed, the Kiwi crowdfunding industry has been stagnate. That, however, is just about to change.