Equity Crowdfunding Stories from Around the Globe
As the final days and hours of 2014 tick away, it is a good time to reflect on all that’s happened in global equity crowdfunding this year. The 2014 American equity crowdfunding scene had its ups and downs, one particular down thanks to the SEC, but those stories are for another day. Today we want to focus specifically on global equity crowdfunding and the widespread success it enjoyed over the course of the past year.
Although it is not legal in the United States on a federal level, equity crowdfunding is active in dozens of countries and continues to thrive. According to one global crowdfunding report, the crowdfunding industry generated $65 billion and 270,000 jobs worldwide in 2014. These numbers do not reflect equity crowdfunding’s impact alone, but it does prove that crowdfunding is wildly successful on every other continent. In fact, the same report suggests crowdfunding in China alone could reach $50 billion by 2025. If equity crowdfunding was legalized in the United States in 2015, what do you think our estimated crowdfunding amount would be for 2025?
Again, today’s blog is about global equity crowdfunding news in 2014 so we are going to stick to the script. It was an exciting year and we are happy to share these educational and inspirational stories to cap off a stimulating 12 months of equity crowdfunding. Here are some of the best stories and statistics of 2014:
OurCrowd Global Investor Summit in Jerusalem
The inaugural Global Investor Summit was held in Jerusalem, Israel from December 9th-10th and was an extraordinary success. OurCrowd, one of the leading global equity crowdfunding platforms for accredited investors, organized the event and plans to host next year as well. OurCrowd posted the following statistics from the event:
-hosted nearly 1,000 attendees from 27 countries
-presented the opportunity to discover 38 amazing Israeli startups in the OurCrowd portfolio
-provided a stage for top speakers in the tech including ReWalk CEO Larry Jasinsky, Iron Dome inventor Brig. Gen. Dr. Danny Gold, among other A-listers in the -investing and banking fields,
-opened up about OurCrowd’s unique equity crowdfunding model
-watched as $4 million dollars was invested in amazing Israeli startups in the first 24 hours of the Summit.
OurCrowd CEO Jon Medved provided this statement in a Yahoo Finance article:
“This global conference will be a transformative moment for equity crowdfunding and a significant achievement for OurCrowd. Historically, crowdfunding has been seen as impersonal and living in the “virtual world” alone; next week, we will bring this to life in a very “real world” way and personalize crowdfunding in a way that it has never been done before.”
Australian Equity Crowdfunding Discussion Session Currently Open
As we shared back in early December, Australia released an equity crowdfunding discussion paper featuring three different options. Two of the three models discussed in the paper are unique and offer a distinct approach to Australian crowd-sourced equity funding (CSEF). The first model is based off the recently implemented model in New Zealand, with the second being a representation of the suggestions by the Australian Corporations and Markets Advisory Committee in June. The third option, Status Quo, requires no change to the existing Corporations Act requirements for proprietary companies, public companies or public fundraisings. It is simply included as a guideline to compare regulatory options. The public consultation process will be open from 12/8/2014 to 02/06/2015.
Finance Minister, Mathias Cormann, and Small Business Minister, Bruce Billson, offered this joint statement in an AU CSEF article:
“We are keen to ensure that any crowd-sourced equity funding model appropriately balances supporting investment, reducing compliance costs (including for small business) and maintaining an appropriate level of investor protection. Small business and entrepreneurs are a crucial driver of productivity and economic growth.”
2014 UK Equity Investments Shatter Records
Everyone knows the equity crowdfunding scene in the UK is booming, but you never really know until the numbers come out. Well, in this particular case, we don’t have to wait until Q4 is calculated – annual records have already been broken in Q3. Yes, 12 month records have been broken in only 9 months meaning the complete 2014 annual report will absolutely shatter 2013’s numbers.
UK Research firm Beauhurst provided a report detailing the astonishing numbers. Here is graphic and direct quote from the Beauhurst Q3 2014 UK Equity Investment Review:
“Looking at our data, we feel it’s likely that the UK’s ‘next big thing’ is most likely to blossom from the Business and Professional Services sector. This space has rocketed to first place in terms of growth-stage deal numbers and investment amounts in recent years, outpacing even the Technology sector.
English Winemaker Chapel Down Smashes Equity Crowdfunding Campaign Record
I think it’s only fitting to follow a country’s record breaking year with the industry’s record breaking campaign. Why is it so fitting? They are both UK-based accomplishments and give you faith in the power of equity crowdfunding.
As noted in this October 2014 Real Business article, Chapel Down raised more than £3.9m from just over 1,400 investors in 24 days. If those numbers don’t blow your mind, this next statistic will. The previous record holder was Seedrs – the funding portal Chapel Down used to raise their money – who raised £2.58m of their own money in January 2014. So not only did Chapel Down outraise Seedrs by nearly £1.4m, they used Seedrs to do it. Brilliant!
Here is a quote from Chapel Downs CEO Frazer Thompson:
“We’re absolutely delighted with the success of our equity crowdfunding offers. Raising money is obviously fantastic and will allow us to grow the business faster, but the fact that over 1,400 new investors have decided to buy into our story is just as important.
We wanted to build a significant body of shareholders who are supporters of our brands, and who buy our products and encourage their friends to do the same. Crowdfunding has helped us to achieve this – and we are delighted to have used this innovative way to raise capital and to welcome our new shareholders to the company.”
A Startups.co.uk article lists the final statistics as £3,953,819 raised from 1,462 investors in exchange for 14.11% of the business. Investors are entitled to up to 33% off Chapel Down’s wines, free access to tours and tastings and discounts on gifts.
2014 was certainly an exciting year for global crowdfunding. The truCrowd team would like to wish all foreign platforms nothing but ongoing success in 2015 and for decades to come. Once Title III is enacted here in America, we plan to join the other U.S. equity crowdfunding platforms in contributing to the amazing success currently occurring worldwide. Hopefully we will be writing a global equity crowdfunding article next December that includes United States statistics.
Thank you for reading and please leave your questions and comments below!