lack of regulation in equity crowdfunding sweden - practical example
TRANSCRIPT
31.03.2016
SVEN SVENSON'S CROWDFUNDING
EXPERIENCE IN SE
A SHORT STORY OF
#MICHAL GROMEK
31.03.2016
RESEARCHER ON FINTECHAND CROWDFUNDING AT SSE
SE.LINKEDIN.COM/IN/MGROMEK
#MICHAL GROMEK
HEAD OF INT. FINANCIALSERVICES AT FUNDEDBYME
HE PRODUCESWIFI-PIESIN STOCKHOLM
THIS IS SVEN SVENSSON:
SWEDISH PRIVATELIMITED LIABILITYCOMPANY
(PRIVAT AKTIEBOLAG)
TECHNICALLY HE IS AN OWNER OF
HE DECIDES TO GO FOREQUITY CROWDFUNDING
The business started well,now Sven needs more
customers, ambassadorsand investors to help him
to grow his franchise.
SVEN DOES WHAT EVERYBODY WOULD DO:
SWEDISH FINANCIAL SUPERVISION REPORTON CROWDFUNING, DECEMBER 2015
"In particular circumstances it is unclearwhich government agency is responsible
for the supervision of crowdfunding inSweden"
"Crowdfunding still has no legaldefinition in the Swedish regulations"
SWEDISH FINANCIAL SUPERVISION REPORTON CROWDFUNING, DECEMBER 2015
A private company can't advertise theirshare issue process to the public.
A company like Sven's can't intake morethan 200 investors at a time.
CAN'TADVERTISE.
REGULATION:
CAN INFORM
NOT MORETHAN 200INVESTORSAT ONCE
REGULATION:
MULTIPLE SHARE ISSUE
CONSUMER PROTECTIONIS THE MOSTIMPORTANT
REGULATION:
THE PLATFORM CAN'T PERFORMANY DD ON THE COMPANIES,IT ACTS LIKE A DATING AGENCY
NOINFORMATIONTO THE PUBLIC
PLATFORM:
INVESTOR SIGNS UP WITHSOCIAL MEDIA AND BECOMESAN EXCLUSIVE MEMBER ;-)
IN 2014, HE WOULD HAD PROBLEMS TO CLOSEA FUNDING ROUND OF 100.000 EURO
In 2016, Sven was able to collect aroundone M-EURO from 198 investors with an
average amount of investmentof 5050 Euro
HAS CHANGEDSINCE THELAST 10 YEARS
NOT ONLY THE SIZE OF FUNDING ROUNDS
THE CFREGULATIONIN SWEDEN
ONE THING DIDN'T CHANGE SINCELAST 10 YEARS
7 OUT OF 9 COULDN'T COVERTHE FUNDING GAP
ACCORDING TO THE SWEDISH FEDERATIONOF BUSINESS OWNERS
4 OUT 5 NEWWORKPLACES
SMES IN SWEDEN CREATE
IS THE REALITYFOR 99.000 SWEDISH
SME COMPANIES.
EVERY DAY.
SVEN'S WIFI-PIE BUSINESS
MICHAL GROMEK,STOCKHOLM SCHOOL OF ECONOMICS
& FUNDEDBYME
“It is high time for public authorities inSweden to define Crowdfunding by law,
create a national discussion forum and leadus out of this medieval dungeon of shady
legislation.”
31.03.2016
SVEN SVENSON'S CROWDFUNDING
EXPERIENCE IN SE
A SHORT STORY OF
#MICHAL GROMEK