Equity Crowdfunding – A SOP Update

I now curate the Equitise blog – below is one of the most recent posts. 

In case you didn’t have time, we’ve compiled some of last month’s equity crowdfunding highlights:

What to say when you hear the word “fintech”

Luxembourg’s finance minister, Pierre Gramegna, has told Luxumburger Wort, of his desire for Luxembourg to become the world centre of fintech (financial technology). The Luxembourg government strongly supports startups and entrepreneurs, and provides high levels of technological infrastructure, both of which are crucial for fintech. The nation boasts a stable, secure, business environment and excellent living standards, which Gramegna hopes will make Luxembourg a fintech destination.

What to say about craft brewing

BrewDog is still on the up. BrewDog, Scottish Independent brewery, is looking to raise a world-record setting £25m from the crowd to fund its expansion plans. Previously the company has generated £4.25m from offering its shares online, with a minimum investment of £95. There has been some controversy surrounding the offering, with commentators suggesting that the business was highly overvalued.

Can I equity crowdfund in China?

Taiwan’s Financial Supervisory Commission has proposed new equity crowdfunding regulations to the Taiwanese government. If passed, this would make Taiwan the second Asian market to adopt specific crowdfunding rules. Platforms may raise to a cap of NT$15 million (around NZD$675,000). Individual investors would be permitted to invest up to NT$50,000 (c. NZD$2250) in a single business.

OK, so how is the rest of Asia doing?

Thailand is another market on its way to establishing equity crowdfunding as a regulated method of raising capital for entrepreneurs and SMEs. The Securities and Exchange Commission plans to implement new regulations by the end of 2015.

And what about North America?

Six provinces in Canada have adopted equity-crowdfunding this month. Securities regulators have permitted online capital raising, with new prospectus and registration exemptions for qualifying businesses. Nova Scotia and New Brunswick now allow crowdfunding investments of up to $1,500 per investor per firm. The provinces allow businesses to raise up to $500,000 and $250,000 respectively on the online platforms.

Meanwhile, in our own backyard

The Australian government has announced new tax incentives for start-ups in the 2015-16 Federal Budget.  Part of the AU$7.8 million allocated to this area will be used to develop a regulatory framework to facilitate online crowdfunding. This forms part of an AU$5.5 billion package aimed at supporting businesses, especially SMEs, with the government recognising equity crowdfunding as an emerging method for businesses to raise capital.

Some stats worldwide – equity crowdfunding is on the up

Equity crowdfunding investment in Germany is up 50% on last quarter, according to statistics released by the German Crowdfunding Network. Debt and lending crowdfunding was also on the rise, with a 70% increase.

And a final note from us

Equitise’s second equity crowfunding campaign, the Retirement Income Group, was oversubscribed, raising capital of $455,300 for the annuities provider. This raise took place concurrent to a wholesale round.

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