Equity-Based Crowdfunding in Finland : The Emerging Funding Phenomenon
Tavi, Tuomas (2014)
Tavi, Tuomas
Metropolia Ammattikorkeakoulu
2014
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201405229281
https://urn.fi/URN:NBN:fi:amk-201405229281
Tiivistelmä
The purpose of this thesis is twofold; first it is an attempt to describe the concept of equity-based crowdfunding in both theoretical and practical terms. Secondly this paper includes a discussion & analysis section where the main current issues about the topic are discussed with an attempt to make a prediction about the possible future developments.
Equity-based crowdfunding is a new concept; start-up companies looking for equity funding via internet platforms. The companies that are using equity-based crowdfunding try to find the large crowds of usually non-professional investors, who would be interested in their endeavour. The internet 2.0 is an enabling element for the industry. Equity-based crowdfunding is an emerging phenomenon that can be seen as a complementary form of funding. It offers a good possibility for SMEs when the more traditional channels of capital have become scarce. At the moment the industry is strongly in the developing phase and its possibilities for the economy are being studied. Currently there are 3-4 main platforms operating in Finland but growth is expected. Since the phenomenon is new there is no legislation that covers solely the activities under crowdfunding scheme.
The main issues for the future deal with, development of the Finnish market, clear separation with the other forms of crowdfunding, regulation policy & aftermarket places for the issued shares. All these topics play a relevant role in the upcoming development that is seen to be significant. At the moment there is a strong belief that equity-based crowdfunding can become an important funding tool for SMEs.
Equity-based crowdfunding is a new concept; start-up companies looking for equity funding via internet platforms. The companies that are using equity-based crowdfunding try to find the large crowds of usually non-professional investors, who would be interested in their endeavour. The internet 2.0 is an enabling element for the industry. Equity-based crowdfunding is an emerging phenomenon that can be seen as a complementary form of funding. It offers a good possibility for SMEs when the more traditional channels of capital have become scarce. At the moment the industry is strongly in the developing phase and its possibilities for the economy are being studied. Currently there are 3-4 main platforms operating in Finland but growth is expected. Since the phenomenon is new there is no legislation that covers solely the activities under crowdfunding scheme.
The main issues for the future deal with, development of the Finnish market, clear separation with the other forms of crowdfunding, regulation policy & aftermarket places for the issued shares. All these topics play a relevant role in the upcoming development that is seen to be significant. At the moment there is a strong belief that equity-based crowdfunding can become an important funding tool for SMEs.