July 24th, 2014 by: Grow VC Group

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.

The hospitality, retail, and media sector has thrived, now, more workers have been better trained and been using more advanced technology. The improved and expanded infrastructure will definitely bring long-term economic benefits for the Brazilin economy. So where does crowdfunding lie between all of this? Has the World Cup increased the amount of capital being invested in Brazil through crowdfunding? Will there be an increase in domestic and international investors?

As the Germans are still celebrating their fourth World Cup win, it is still too soon to determine the direct impact the World Cup had on the Brazilian crowdfunding industry. However, there are many indicators, which point towards positive implications. Crowdfunding is no new concept to Brazil, as it has been reputably present since the summer of 2010. Government regulations permit for a flexible and flourishing crowdfunding ecosystem. It is said that financial laws have similar principles to crowdfunding, thereby making it a simple procedure for people to borrow and lend capital. However it seems as though Brazil has not been exploited yet.

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


July 22nd, 2014 by: Grow VC Group

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?

The situation for crowdfunding in China is mixed: reward crowdfunding is already working in the Chinese Republic, offering to artists and creatives the possibility to raise funds for their projects in an innovative way. Peer-to-peer lending has been up and running for a few years now. However, as Crowd Valley reported in a recent article , P2P lending is undergoing a decline in the region, as many players are getting out of the market.

Two of the main reasons for the many failures, after a multiyear period of steep growth, are the liquidity squeeze enacted by the central bank at the end of last year and the heavy competition. Equity crowdfunding is instead not allowed yet, since public solicitations of investments is forbidden. However, one platform found a way around it, allowing self-declared professional investors to invest in a Special Purpose Vehicle which then buys the shares of the company seeking equity capital.

Read the whole article on Crowd Valley Blog.


July 21st, 2014 by: Grow VC Group


July 21, 2014 – Kapipal, the international donation- and rewards-based crowdfunding platform, today announced its acquisition of WeLoveYourSongs, an online music community for unsigned musicians and their fans.

Founded in 2010, WeLoveYourSongs has built an online community centered around unsigned musicians and fans of underground music. The site also hosts contests in which musicians upload their original songs and users vote for their favorites. In the most recent competition, the first-place winner received recording software and worldwide distribution of ten songs.

“Musical artists are finding it increasingly difficult to make a living from their talents, and we see crowdfunding as one of the ways unsigned musicians can find success in their craft,” said Alessandro Ravanetti, founder of WeLoveYourSongs. “Bringing our community together with Kapipal’s crowdfunding platform is the logical next step, one that holds great potential for both the musicians and their fans.”

“Some of our most successful crowdfunding campaigns involve musicians raising money for their latest album, and we look forward to bringing our proven platform to the community of musicians and fans at WeLoveYourSongs,” said Elizabeth Holoubek, Chief Operating Officer for Kapipal.

WeLoveYourSongs will continue its existing operations supporting unsigned musicians and helping music fans to discover new talented underground musicians, with a roadmap in place first to bring more crowdfunding support to artists and to integrate Kapipal’s crowdfunding platform in the future.

About Kapipal

Kapipal is an international crowdfunding platform that allows people to collect money for personal projects, charities, and causes.  The platform has helped people from over 150 countries raise millions of dollars and has over 50,000 unique users a month. Kapipal was founded in 2009 and acquired by Grow VC Group in 2013.

For additional information, please contact Elizabeth Holoubek, elizabeth@kapipal.com


Kapipal logo

WLYS logo

July 18th, 2014 by: Grow VC Group

The U.S. Export-Import Bank (ExIm Bank) is in the throes of its toughest experience yet.

Congress is heatedly debating whether to reauthorize the ExIm Bank’s charter, and if it doesn’t act by September 30th, the agency will no longer be able to extend new loan guarantees to U.S. exporters. The Bank and its supporters have said that a failure to reauthorize the 80-year-old institution will hurt exports and cause companies to cut jobs.

The many critics argue the bank picks winners and losers, is used by large corporations that could have access to affordable bank lending – in Washington, ExIm has long been talked about as “Boeing’s Bank”. Tea Party is of course overall fed up with federal programs and spearheads also ExIm opposition.

These battles are not new: the agency is notoriously politicized in Washington and repeatedly struggles to secure Congressional re-authorization. Yet never before has the fight been so bloody.

Read the whole article on TradeUp Blog.

Source: TradeUp on the basis of Ex-Im Bank annual reports, 2000-2013.

Number of Ex-Im Bank-Supported Export-Related Loan Authorizations to Small Businesses in 2000-2013. Source: TradeUp on the basis of Ex-Im Bank annual reports, 2000-2013.

July 15th, 2014 by: Grow VC Group

Recently, it is not rare to read about the so called “crowdfunding fatigue”, which indicates the feeling of some people, annoyed by too many requests for participating into crowdfunding campaigns. But does such a thing as crowdfunding fatigue actually exist?

Crowdfunding has developed as an alternative source of finance only in the last 6-7 years. However in some markets, particularly favorable to entrepreneurship, creativity, social media and online payments it established and grew faster than elsewhere. An example is the USA – a market of 300 million people – where crowdfunding is not equally developed and used everywhere. Some areas, for example New York and Los Angeles, where there is a high concentration of entrepreneurs, high net worth individuals, designers and creative people, who often communicate via social networks, have been and still are perfect grounds for reward-based crowdfunding to flourish. In fact, there, reward crowdfunding is currently a quite common method to raise seed capital for different kinds of creative and social impact projects. In these areas, it might make more sense to talk about crowdfunding fatigue then for instance in France or Italy, where it is not yet so common.

Read the whole article on Crowd Valley Blog.


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