January 27th, 2015 by: Grow VC Group

Back in July 2013, Italy was the first country in Europe to adopt a specific regulation for equity crowdfunding. The set of rules, which we described extensively in this post, allowed only the so called innovative startups to raise capital through online portals.

However an important news has arrived last week. The Italian government has in fact released an additional law which extends the possibility to use equity crowdfunding as source of finance also to “innovative SMEs” that is firms with less than €50 million annual turnover and that respect at least one of the following three requirements:

  • 3% of either sales or costs (whichever the biggest) attributable to R&D activities.
  • one third of employees has a degree or one fifth of the employees are doing or have done a doctorate program
  • the company owns a patent.

The new rules will enter into effect in about sixty days and Italian lawmakers expect they will improve SMEs’ access to finance, while at the same time encouraging R&D and innovation. Hopefully this will also gear up the crowdfunding market in the Country, but we will evaluate the effects later in the year.

Read the whole article and more details on Crowd Valley Blog.

Italy

January 23rd, 2015 by: Grow VC Group

Crowdfunding is often associated to startups or gadgets in Kickstarter. Those are an important part of the crowdfunding. Grow VC Group is active to create solutions to finance growth companies, export, real-estate and even commodities. But crowdfunding can also be an important tool to achieve your personal dreams or help people in difficult situations. It is a concrete way to be a part of a community.

Grow VC Group’s Kapipal focuses especially on personal crowdfunding. People use it to achieve their dreams like publish music or a book, and also for very personal things like wedding or birthday parties. Kapipal’s tools make it easy to make all kind of campaigns.

An important category are also campaigns to help other people in their difficult situations. In the last year Kapipal was used, e.g., for “Sam’s Fight For Life And Living!“,  “Help Celyn Communicate“, “To help Karen Cruiks fight cancer by every means necessary“, and “Alice’s Fund” campaigns. All of them are to help other people. You can read more about these case on Kapipal Blog. These are important examples to all of us to remember, you can literally save someone’s life. Crowdfunding is not only hard business, but also support other people!

Personal crowdfunding

Kapipal logo

 

 

January 21st, 2015 by: Grow VC Group

Last week, Massachusetts released “emergency regulations” legalizing crowd investing in the State. Despite for its current Governor being known as a skeptical of online investing, the State adopted these new rules with an interesting approach and with no legal action, but only using the power of the Secretary of the State and making them immediately effective for their emergency.

The regulation differs substantially from other States’, mainly in the fact that the issuer is not required to be based in Massachusetts, but it has to be formed under the laws of the Commonwealth, have its principal place of business in the Commonwealth and be authorized to do business in the Commonwealth. Furthermore, different from other intrastate regulations there are no requirements at all for the third party platform where the issue of shares takes place.

The rules are already into effect and Massachusetts has indeed brought a breath of fresh air in the intrastate crowdfunding movement, not including requirements for platforms operators and giving the possibility to issuers not to undergo a financial audit. We will see Massachusetts’s case will influence other States or even the SEC.

Read more details and the whole article on Crowd Valley Blog.

Boston Harbour

January 19th, 2015 by: Grow VC Group

The Internet’s impact on financial services has been limited so far. While we do have services with online distribution and information capabilities like online banking, efficient payments and brokerage, true disruptions to financial services, particularly investment markets, have been vague. That is until now.

New online securities models have started to challenge and disrupt established value chains in financial services, in the form of peer-to-peer investment networks (peer-to-peer lending, peer-to-business lending, crowd investing, etc). While these networks create many opportunities in the financial services market, they also makes some traditional business models redundant. Changes are vast and global, and their impact is becoming undeniable cross the market.

Various countries and financial regulators from the United States, the UK and other European countries, as well as countries in Asia Pacific, have adopted new measures to set a framework in place for online investment markets to emerge with the right investor protections in place. In this article, we will examine these regulatory changes with a few case examples, their implications and the opportunities they present in the nascent but ultimately vastly disruptive marketplace.

The Grow VC Group works and collaborates with several companies in South East Asia, for example Singapore, Hong Kong, Mainland China and Malaysia. There are clearly still outstanding questions about fundamental changes to crowdfunding marketplaces in the longterm.

However, it is certain that these changes are making a shift in the fundraising landscape. There is no going back in the development, but seizing this opportunity presents a chance for financial services firms to put a stake in the ground and lay claim to new business opportunities.

Read the whole article on Crowd Valley Blog.

This article (written by Crowd Valley CEO Markus Lampinen) was originally published in the HKVCA Journal. A New Leaf in Asia’s Private Equity. Fall 2014. 

Crowd Valley Market Report

January 15th, 2015 by: Grow VC Group

As we enter 2015, the intrastate crowdfunding movement keeps moving fast. The latest state expected to join it and the first one expected to publish relative rules in 2015 is Oregon.

Crowdfunding regulation in the state have been pushed forward by a non-profit company founded with the aim of bringing this new financial tool to the country’s SMEs. In fact, a spokeswoman for the Department of Consumer and Business Services explained: “We think this rule will give small businesses an opportunity to raise the capital they need to expand and grow – which could spark economic development throughout the state. Smaller businesses currently have very few options for raising money.”

The rules were expected to enter into effect on the 2nd of January, but the local financial authority delayed the release by the end of January, in order to collect feedback from the public. The state’s stakeholders keep waiting for the rules to be published and intrastate crowdfunding to be ignited. They in fact see the great potential of this financial source for thieir SMEs: “If Oregonians invest just one percent of their combined retirement savings, that will unleash a tsunami of more than $900 million on Oregon businesses. All without a public cent.”, commented one of the movement’s representatives.

Read more details and the whole article on Crowd Valley Blog.

Oregon

 

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