crowdfunding an alternative source of...
TRANSCRIPT
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17 March 2016 – www.eurocrowd.org
Oliver Gadja| Executive Director: European Crowdfunding Network AISBL Coenraad de Vries: Member of the Executive Board
Crowdfunding An alternative source of finance?
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• Professional network founded in 2011, and incorporated as a European Professional Association since 2013
• Currently 62 members accross 16 Members States
• Promotes transparency, (self) regulation and governance of the European crowdfunding industry
• Aims to increase the understanding of crowdfunding as key support for entrepreneurship
• Conducts research, provides platform for exchange and maintains a network with professional stakeholders across Europe
• Represents the crowdfunding sector towards policy makers on European level and advises EU Institutions and National Regulators
• Publications, upcoming events and information on ongoing research projects : www.eurocrowd.org
Role of the European Crowdfunding Network
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Challenges for European Crowdfunding
• Crowdfunding is a high-growth sector in Europe and worldwide
External challenge: creating a friendly legal environment
• Regulatory frame is still very fragmented, on non-existant depending on Member States
• Current EU legislation still too much protective regarding domestic markets, hampering real cross-border operations
• Crowdfunding can be a catalyser in helping to open up a true single market for Capital
• Accompany the digital revolution with the revolution of online retail finances and investment opportunities for consumer
• In Europe High consumer protection – but low consumer interest approach (opportunities!)
Internal challenge: Professionalise the standards in the sector with regard to transparency and trust
• Establish business models that deliver growth but leaving enough room for constant innovation (digital and financial)
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ECN’s Upcoming events on Crowdfunding
CrowdCamp 2016 Crowdfunding for Renewables 24 May 2016
CrowdTuesdays monthly meet-ups of the CF industry across Europe • 17 March 2016, Vienna - AT| The Austrian Crowdfunding market • 22 March 2016, Paris - FR| Financing Green Energy • 26 March 2016 Turku - FI| Crowdfunding in Finland • 26 March 2016 Bulle - S| Crowdfunding in the hospitality sector
For more info and events sign up to our Newsletter at www.eurocrowd.org
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Oneplanetcrowd
From venture capital to crowdfunding
TOGETHER WE FUND THE FUTURE
www.oneplanetcrowd.com [email protected] +31 20 568 20 70
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Topics
How did crowdfunding get that popular?
What are the forces that drive
crowdfunding’s success?
How will crowdfunding be shaped to
become a mature industry?
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Short Introduction of Oneplanetcrowd/ Start Green Capital
Who are we?
• Largest Sustainable Crowdfunding Platform in the Netherlands; established in 2013
• Part of Start Green Capital; Venture Capital firm (> 125 mio EUR under management; active in early stage sustainable investments since 2001
What do we do?
• Flexible early stage finance solutions companies/ renewable project developers: rewards, loans and equity, is possible combined with VC capital or bank loans
• Investment offer to the crowd: possibility to built their own investment portfolio diversified into several finance instruments
• The mix of above: has realised an active investment crowd of 17.000 investors
Where are we active?
• Netherlands, Germany and in partnerships in Belgium, Austria and Portugal.
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The funding problem
Filling the gap in the early stage of sustainable and innovative start ups and projects
Crowdfunding Venture Capital Private Equity
Subsidies Banks
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Finance gap for SMEs in banking industry due to financial crisis
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10
Savings in the Netherlands
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
dec-'94 dec-'99 dec-'04 dec-'09 dec-'14 Apr-'15
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Internet has changed the market mechanisms to match supply and demand of goods/services in most industries
Financial Industry?
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Technological & social changes that make crowdfunding possible
Crowdfunding
Fintech
Social Media
Credit Crisis
Do-it-yourself
Opening of
regulation
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The Role of Crowdfunding in Finance
• early stage capital
• growth capital
• mix of hybrid finance instruments (CF, VC, BA),
changing “logical flow” of finance:
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Key success factors for crowdfunding industry
• Keeping promises: pay back!
• Show actual financial returns
– Transparent
– Uniform
– Objective
• Risk management
• Transparency in performance of CF platforms
• Harmonization of legal framework(s)
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More professional products, more diversity
• Collateral/guarantors
• Guarantee schemes (public and private)
• Fair market prizes (equity)
• Real estate, renewable energy, careers, invoice
trading, what’s next?
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Secondary Markets
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More future perspectives?
• Crowdfunding Feeders Funds
• One universal (cross-platform) wallet from
which an investor can invest
• From domestic (per nation) to pan-European
(EU can compete with US! (if we want))
• Civic Crowdfunding
• Alternative Finance for Developing Economies
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www.oneplanetcrowd.com [email protected] +31 20 568 20 70