It’s an exciting time to be alive in the world of equity crowdfunding, as regulation worldwide seeks to expand its possibilities, and as companies achieve new goals through their platforms. From platforms advising governments, to the world’s first crowdfunding exit, we’re here to bring you the biggest headlines from the crowdfunding market.
Plans to defy Brexit woes via crowdfunding
In order to circumvent the gloomy UK market resulting from their shock decision to leave the EU, Crowdcube have been doubling down on the positive windfall from this for the alternative finance market. In their recent blogpost, the UK platform announced plans to launch a £5 million self-funding round, inviting the UK public to register for early access for their latest round of funding. Crowdcube are raising under a prospectus, which is a first for them, allowing them to surpass the current £5 million limit of funding from the crowd.
US Government taking advice from UK on crowdfunding regulation
In a move that should please crowdfunding platforms in the UK, the Financial Conducts Authority (FCA) is accepting input on rules regarding the regulatory environment surrounding debt and investment-based crowdfunding. The body periodically reviews the rules, that were implemented in 2014. This call for feedback from interested bodies was welcomed by Kevin Caley, CEO of P2P lender ThinCats, as “important [in giving] people clear benchmarks and guidance from which to make financial decisions…while debunking some of the common misunderstandings around the industry.”
Crowdcube expands to Spain
Crowdcube has received approval from the regulatory body of the Spanish stock market to launch its Crowdcube Spain. As the first Spanish platform to receive this validation from the body, Crowdcube has a unique advantage, and this is a tactical win for Crowdcube following the recent anxiety surrounding UK financial bodies in Europe.
From one kind of crowdfunding to another
In an exciting move for the wildly popular crowdfunding platform, Indiegogo is looking to take the plunge into the equity crowdfunding domain later this year, as it attempts to convert its loyal customers to an altogether new crowdfunding service. Indiegogo will be taking advantage of Title III of the Jumpstart our Business Startups (JOBS) Act in the US, which made equity crowdfunding accessible to the public in May. Subsequent to the JOBS Act, US startups will be able to raise up to $1 million from small-time investors. This represents a noteworthy move from the company, who previously only offered ‘perks’ or other services for customers who offered sums to startup companies. Indiegogo has already functioned as a platform for 7 million backers, and will provide a jolt to equity crowdfunding activity in the US, which has seen about three-dozen companies use the regulated platforms since May.
The world’s first crowdfunding exit?
E-Car Club has made headlines as the world’s first successful crowdfunding exit. The electric car business’ crowdfunding campaign launched in October 2012, and has subsequently been acquired by Europcar, offering investors significant returns on their investment. E-Car Club has been a brilliant example of how to grow a brilliant idea from concept to angel investment to the sale of a majority stake to a major multinational corporation.
That’s the latest roundup of the biggest crowdfunding headlines, stay tuned for more news from the wonderful world of crowdfunding.