The Latest Crowdfunding News – 17/2/16
Crowdfunding News – All The Latest Updates
Hi guys and welcome to our fortnightly crowdfunding news edition, as usual we will be covering an array of interesting crowdfunding topics from around the world in five minutes. If you missed our last edition, you can catch up here. Today, we once again clock up the air miles and start our crowdfunding journey in New Zealand and finish in Greece for some baseball action!
New Zealand Beach Hits Crowdfunding Target
A crowdfunding campaign in New Zealand to raise funds to buy a beach for public use has successfully hit its target.
Campaigners had until Tuesday to raise NZ$2m (£914,000, $1.3m) and place a bid on the currently private beach according to the BBC.
More than 36,000 people have now supported the beach campaign and donations continue to flow in from all over the country.
People were quick to get involved and the money was raised in less than a month after a group of friends plotted the purchase.
The beach in Awaroa, South Island, has been owned by a Wellington-based businessman since 2008. A real estate company has advertised the stunning area as a remarkable seven-hectare utopia” with “three modest buildings dotted amidst the mature native bush”. (RealEstate.co.nz)
The crowdfunding campaign’s Give A Little page has stopped showing the running tally once it hit NZ$2m, so the total amount of money has been raised is unknown.
About a fortnight ago, New Zealand’s prime minister mentioned that he wouldn’t rule out a government contribution if needed.
Crowdfunding Saves SMEs
Since the 2008 financial crisis, SMEs have looked at alternative ways of gaining funding and crowdfunding platforms such as Kickstarter and Seeders have helped fuel the way that SMEs think about business and finance.
They beauty of crowdfunding for start-up companies is that the concept bypass traditional funding streams such as grant applications or bank loans as innovation charity Nesta mentions in The FT.
Figures indicate that the value of crowdfunding expanded globally by 167 per cent to $16.2bn in 2014, up from $6.1bn raised in 2013. (The FT, February, 2016) The crowdfunding industry doubled in 2015, according to stats from a City A.M. article, crowdfunding on a global level expanded to $34.4bn.
The UK seems to be championing crowdfunding compared with other countries such as Canada due to slower adoption rates and regulatory constraints.
UK start-ups such as Brewdog are a great example, the Aberdeenshire company broke equity crowdfunding records by raising £5m in the first three weeks of its fundraising round, using its own platform — Equity for Punks. You can read more about their story here.
A Brief Insight Into French Crowdfunding (In Numbers)
The French Crowdfunding Association (Financement Participatif France) has recently compiled some data based on crowdfunding activity during the 2014-2015 period.
In France, the slowest area of growth was in donations / rewards. The lending or debt sector experienced the most dramatic growth according to Crowdfund Insider.
The French Crowdfunding Association mention that funds collected jumped from €152 million in 2014 to €296.8 million for 2015.
Let’s take a look at French crowdfunding in numbers
- Rewards / Donations – €50.2 million
- Loan Based/P2P – €196.3 million
- Equity/Royalties – €50.3 million
- The most active age in all crowdfunding categories is 35-49
- Average investment for an equity was €4,342
- Hottest sector for equity crowdfunding is property
In 2014 France updated regulations on alternative forms of finance, while the rules are not perfect as Crowdfund Insider’s JD Alois puts it, on the flipside, there is a healthy eco-system in place for crowdfunding. It seems that regulations need to be addressed further as one source has mentioned that crowdfunding in France is not as clearly defined as, for example, banking. We will keep you updated about more crowdfunding news in France in future crowdfunding news blogs.
Seedrs Hits £100 Million Invested In Early-Stage And Growth
Seedrs, the UK’s No. 1 equity crowdfunding platform, recently announced that it has had more than £100 million invested on its platform in early-stage and growth focused businesses since it launched back in July 2012.
2015 was a great year for the company, not only had over a £100 million invested on the platform, it also had over 38,000 investments made on the site.
Standout funding rounds on Seedrs in 2015 included, healthy eating high street brand, Tossed, which raised £1.34 million from 661 investors, and award-winning cloud accounting software, FreeAgent, which raised £1.21 million from over 700 investors. (Mondo Visione, February, 2016)
Seedrs now has significantly more people using its site than any other UK equity crowdfunding platform.
Last month the equity crowdfunding platform was named a Bloomberg Business Innovator 2016, an award that recognises “the people changing how the UK lives, works and thinks,” as well as joining Tech City UK’s Upscale Programme of 30 of the fastest-growing UK tech companies.
Greece Baseball Team Crowdfunding To Reach European Championship
One for all you sports fans out there! Greece’s men’s national baseball team has set up a crowdfunding page in order to raise funds so they can participate in the European Baseball Championship in Hoofddorp, The Netherlands.
The Hellenic side had qualified for the tournament having finished in tenth place at the 2014 edition of the event, which was won by the Dutch team and claimed the last remaining automatic spot.
Due to the country’s economic situation, the Hellenic Amateur Baseball Federation (HABF) has been shut down by the Government, putting their hopes of competing at the tournament in jeopardy.
Without a National Federation recognised by the Confederation of European Baseball, the team would be unable to participate in the event which takes place in mid September.
Tom Mazarakis, the team manager and former HABF President Panagiotis Mitsiopoulos are due to meet with the Government soon in an attempt to have a new Federation put in place.
If a new federation is granted, the team are hoping to raise $35,000 (£25,000/€32,000) through crowdfunding to ensure that it will be able to support the team on a long-term basis.
Love baseball and interested in helping the Greek team out? Click here.
Unfortunately at The House Crowd we can’t help you crowdfund your favourite baseball team, however, we can offer you at our very own Manchester guides (North and Central) and an ideal place to watch and play baseball!
What Are Your Thoughts?
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