The allowance of national interpretation in many important areas leads to a disparate regulatory landscape of crowdfunding in the Nordic countries, specifically Denmark, Norway and Sweden. Learn more about crowdfunding in Scandinavia.
Although the ECSPR harmonizes the regulation of crowdfunding platforms, there are three specific issues crowdfunding participants should be aware of:
1. The fact that it is decided in the civil law of each Member State which securities are considered transferable securities or other admitted instruments for crowdfunding purposes, creates low harmonization.
2. The decision not to harmonize AML legislation with the ECSPR has led to different interpretations of the scope of AML requirements applicable to crowdfunding platforms.
3. The monetary threshold for crowdfunding offers leaves some offers outside the scope of ECSPR and leads to inconsistent disclosure requirements at the national level.
Crowdfunding in Scandinavia, continues below the image.
Getting a loan in Norway and USA: A Side-by-Side Comparison. Read the article by clicking the image below:
You may be wondering whether crowdfunding is relevant to you. In addition to accessing an attractive audience, it provides several opportunities for a creator that is fully involved in the process of creating a product.
Obviously, the most important thing is that you can raise capital before you have a finished product. It can be anywhere between 10,000 and 200,000 (DKK, NOK or SEK respectively) and all your early supporters and potential backers can build a community around your work, your biggest resource for spreading the word about your project.
How to start?
a) What do your backers think about your product? Do a Beta test
b) Get backers to your project. Call them ambassadors and establish a group of followers who are engaged and especially loyal to your product.
c) Share and test your product with your community. This way you can find out if there is a market for your product, before you invest too much.
Crowdfunding in Denmark
IDA Crowdfunding in Denmark aims to make it easier to succeed for people working with technology or science-based products with a sustainable profile, and for consumers, it is easy to be part of it.
The association works for a more sustainable development assisted by technological and scientific solutions. This is a major part of the company’s vision.
It is also easy to be part of the association as a technology enthusiast or ordinary consumer. You can support new, innovative solutions with a small amount of money, and in this way, be part of the efforts to bring them to the world. You always get something in return such as products and/or services you have initially supported.
IDA Crowdfunding is a providing platform for you with a good idea or project, that needs start-up capital to develop a finished product that finally you could offer to your potential customers. And the best of it all, it’s completely free.
Want to read more or do you want to crowdfund? Please visit crowdfund.ida.dk. Be aware of IDA Crowdfunding still only exist in a Danish version, but that might change in the future.
Crowdfunding in Norway
One of the new dynamic breed of financial institutions in Norway is Kameo which has revolutionized the way small businesses in the region acquire funding. It’s a system that allows small-scale borrowers to bypass the banks altogether and interact with lenders on a peer-to-peer basis.
Crowdfunding is faster and more flexible than bank loans. Normally, a crowdfunding association takes companies of all sizes seriously, from small gardeners to large property constructors. From a lender perspective, there are higher interest rates, and the process is far mor transparent than other investment models.
All potential borrowers are risk-screened and about 80 percent of Kameo’s applicants are rejected, securing the lenders’ money. For lenders, there’s the possibility to create diverse portfolios and spread the risk, since the minimum investment amount is only NOK 500.
Please visit Kameo.no. Be aware of Kameo Crowdfunding still only exist in a Norwegian version, but that might change in the future.
Crowdfunding in Sweden
There are a several popular crowdfunding platforms in Sweden, including Kickstarter and Indiegogo. These platforms allow individuals and groups to raise money for specific projects by issuing pledges of money or items.
Kickstarter is a popular platform in Sweden because it offers a wide range of pledged rewards, including money, goods, or services. Kickstarter backers can also share their project ideas with other potential backers and make suggestions on how the project could be improved.
Indiegogo is another popular crowdfunding platform in Sweden. It has a more relaxed approach to pledging money, and backers can pledge anything from a few hundred dollars to tens of thousands of dollars. Indiegogo backers can also share their project ideas with other potential backers and make suggestions on how the project could be improved.
Both Kickstarter and Indiegogo are great options for crowdfunding projects that are important to society or the economy. They can help fund important projects that may not be possible to finance through traditional means, such as developing new products or services or creating new ways to do business.
Crowdfunding in Sweden – read our conclusion below the image.
Learn how & why to startup a business in Sweden by clicking the image below.
Crowdfunding in Scandinavia – Conclusion
In this article, we have aimed to describe crowdfunding in general with some examples, of Scandinavian players randomly selected by us. There are, however, many other players in these markets, and here’s three more comprehensive lists:
Crowdfunding in Scandinavia, written by Tor Kjolberg