Crowd Funding for Equity Now Legal in Sweden
By David Drake
FundedByMe in Stockholm quietly went live with Sweden’s first crowd funding for equity platform yesterday. Fortunately Mr. Drake speaks Swedish and was privy to the underlying Swedish statutes and laws supporting the country’s move to legally allow crowd funding for equity. On Tuesday Mr. Drake meets with the Dutch corporate “grandfather” of crowd funding for equity, Symbid, in Amsterdam and Rotterdam. The operations of each of these companies are diverse and both are pursuing exemptions in the laws of their respective countries.
FundedByMe founder Daniel Daboczy described the platform launch as “extremely exciting. We got over 1.5 million Euro commitments within two days.” To put this in perspective, Sweden only has 9 million inhabitants. “It has been extremely challenging to get to this point,” said Daniel Daboczy. “A revolution in early stage finance is about to take place.”
Mr Daboczy has pointed to the growing sophistication of investors to explain his company’s launch at this time. “We are adding equity crowdfunding to a functioning system not only because we can or because we see a huge growth within this market, but because our clients have asked for it. “
European interest in finding solutions to enable crowd funding for equity continues. CrowdCube UK pursued a no-action letter approach where you ask the financial authority to write a letter stating it will not act on requested processes. Newly launched Seedrs in London got the appropriate financial authority approvals to operate their platform. However, no one has figured out how to take their investment platform outside their nation. Granted these platforms are just starting and need to evolve their own market. However, we at The Soho Loft know who will evolve and how they will. We continue to monitor the exceptional developments in Europe and the US in alternate funding source expansion.