The United States is abuzz with crowdfunding. From discussions about the potential ramifications of the JOBS Act to the millions raised through rewards crowdfunding, the movement to raise capital online is gaining serious momentum. With all of this nationally-focused noise, it’s easy to forget that crowdfunding is not an American institution. In fact, we were one of the later countries to catch onto crowdfunding.crowdfunding marketing
The concept of crowdfunding has deep international roots, used frequently to finance book prints in Europein the 17th century. Hopeful book purchasers were able to pre-order printed publications in advance—making it one of the world’s first subscription services as well.
Crowdfunding was also used in music as far back as the 1700s. Even the famous Mozart lacked sufficient funds to bankroll concerts, and used crowdfunding to raise money to hold three events at a Viennese concert hall. Mozart also had the jump on great backer rewards, offering manuscripts of the concertos to his most loyal fans. Not surprisingly, without the power of the Internet it took Mozart over two years to finance the performance.crowdfunding advertising
Modern day crowdfunding has become an incredible force for businesses throughout the world. As more countries make steps to regulate and legalize equity crowdfunding, more investments are being made in early stage businesses across the world.
Some rewards crowdfunding platforms operate across multiple countries, but for the time being, equity crowdfunding platforms are regulated and operated within individual countries. Whether through rewards or equity crowdfunding, it’s incredibly exciting to watch the international startup community grow. Here’s a peek into what’s going on in the rest of the business crowdfunding world.indiegogo marketing
Canada allows for rewards-based crowdfunding with minimal regulation but like all of the countries below, has more stringent rules surrounding equity crowdfunding. An early adopter, Canada’s first equity crowdfunding portal, Optimize Capital Markets, launched in 2009 in Ontario. Because of the segmentation of regions within Canada, equity crowdfunding is being approached on a regional level within Canada. In 2013 the Ontario Securities Commission announced that it would allow equity crowdfunding via accredited investors. In the winter of 2013, the province of Saskatchewan also made equity crowdfunding legal.kickstarter marketing
New Zealand preemptively established legal guidelines surrounding equity crowdfunding in 2013, making it a legal form of raising capital within the country. Several platforms have launched since, allowing New Zealand companies to raise up to $2 million in a 12-month period without the typical offer documents required under securities law.kickstarter project
Like the U.S. and Canada, Italy has several well-functioning reward-based crowdfunding websites, and has been active in the space since 2011. Just two years later, Italy became the first country in Europe to implement a complete regulation on equity-crowdfunding, creating a national registry for crowdfunding operators. Equity crowdfunding platforms are now operational in Italy.CrowdFunding advertizing
embraced crowdfunding early on, with the launch of Crowdculture in 2010, a platform for funding cultural projects. Equity crowdfunding became possible in Sweden in late 2012 and is currently being practice by platforms like FundedByMe.CrowdFunding marketing
After years of active rewards crowdfunding in the UK, Seedrs was the first equity crowdfunding platform to be authorized by the FCA (Financial Conduct Authority) of the UK. U.K. regulators moved more quickly than those in the U.S. and elsewhere. Non-accredited investors can invest in startups as long as they agree not to spend more than 10 percent of their net assets in a year.
The FCA of the UK has recently come forward with additional proposed regulations, but equity crowdfunding continues to grow.Kickstarter Marketing
Kenya is at the forefront of the evolution of startup financing. Home to several accelerators, they have become a hub of startup activity. Crowdfunding has never been a distant concept in Kenya; there is actually a word for the spirit of communal fundraising—Harambee—that is a keystone of Kenya’s culture. South Africa and Nigeria are also home to a strong startup community and host multiple crowdfunding sites.
In Kenya, crowdfunding platforms Babandu and M-Changa have experienced great success due to their mobile payments features. Crowdfunding could solve a critical problem facing startups in Kenya: a lack of business angel networks. Most businesses in Kenya are self-funded and many fail due to lack of operating capital.Indiegogo Marketing
Crowdfunding, much like entrepreneurism, is truly an international movement. As countries hone in on their equity crowdfunding guidelines, I look forward to seeing an influx in entrepreneurship across the globe.crowdfunding websites
As the founder of Fundable, I spend most of my day working with entrepreneurs and giving advice on how startup funding works.
Posted from: http://www.forbes.com/sites/wilschroter/2014/07/09/crowdfunding-around-the-world/