Why Europe is theBest Market in the Worldfor Equity CrowdfundingJeff Lynn15 April 2013
Introduction• I’m CEO and co-founder of Seedrs• A bit of background on us:− UK-based equity crowdfunding platform− Startup...
Locating Seedrs• When my co-founder and I began working onSeedrs, we could have located it anywhere− I’m American and have...
Regulation• When we started out, there was no JOBS Act• U.S. rules-based system was far less welcomingthan European princi...
Legal Systems• Europe is not the only region with a flexibleregulatory system− Exists in some emerging economies too• But ...
Startup Culture• Startup activity is accelerating faster inEurope than anywhere in the world− Lots of hubs, accelerators e...
Lack of Seed Funding• Seed funding is highly inefficient in Europe• Very regional, with strong government intervention• St...
Culture of Collaboration• Equity crowdfunding is about returns− Investors need to profit if this form of funding is togain...
Making it a Reality• Europe has the potential to be the best marketin the world for equity crowdfunding• However, we need ...
Questions?@seedrswww.seedrs.comSeedrs Limited is authorised and regulated by the Financial Conduct AuthorityJeff Lynnjeff....
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Crowdfunding Day - Jeff Lynn (Seedrs)

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Presentation of Jeff Lynn (Seedrs) at Crowdfunding Day (April 15, 2013)

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  • We had a great time at Crowdfunding Day in Amsterdam.
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Transcript of "Crowdfunding Day - Jeff Lynn (Seedrs)"

  1. 1. Why Europe is theBest Market in the Worldfor Equity CrowdfundingJeff Lynn15 April 2013
  2. 2. Introduction• I’m CEO and co-founder of Seedrs• A bit of background on us:− UK-based equity crowdfunding platform− Startups can raise up to £150,000 through us− Launched July 2012 – first platform of our kind inthe world to get regulatory approval− Funded over £1 million across 21 startups− Median investment is £100@seedrswww.seedrs.comSeedrs Limited is authorised and regulated by the Financial Conduct Authority
  3. 3. Locating Seedrs• When my co-founder and I began working onSeedrs, we could have located it anywhere− I’m American and have strong ties to India− Carlos is Portuguese and has strong ties to Brazil− We were living in the UK for our MBAs but werefully mobile• We chose to set up in the UK, with a view tobecoming pan-European, because we seeEurope as the best global market for equitycrowdfunding@seedrswww.seedrs.comSeedrs Limited is authorised and regulated by the Financial Conduct Authority
  4. 4. Regulation• When we started out, there was no JOBS Act• U.S. rules-based system was far less welcomingthan European principles-based systems• Even with the JOBS Act, European systemsare still the better ones for now− JOBS Act is highly flawed and will take years ofregulation and further legislation to get right− European systems, while disparate andimperfect, have proven themselves much moreflexible@seedrswww.seedrs.comSeedrs Limited is authorised and regulated by the Financial Conduct Authority
  5. 5. Legal Systems• Europe is not the only region with a flexibleregulatory system− Exists in some emerging economies too• But the other key element of equitycrowdfunding is a strongcorporate/commercial legal system− In the absence of personal relationships, contractsand corporate law must be robust and enforced• Very few other countries (bar the U.S.) haveas strong legal systems as we have here@seedrswww.seedrs.comSeedrs Limited is authorised and regulated by the Financial Conduct Authority
  6. 6. Startup Culture• Startup activity is accelerating faster inEurope than anywhere in the world− Lots of hubs, accelerators emerging− Talent is flocking to entrepreneurship• Macroeconomic situation encourages this− Europe underperformed in the startup stakes whenother parts of the economy were more stable− Increasingly, bright people see the need tocreate their own value• With increasing startup activity comesincreased demand for funding @seedrswww.seedrs.comSeedrs Limited is authorised and regulated by the Financial Conduct Authority
  7. 7. Lack of Seed Funding• Seed funding is highly inefficient in Europe• Very regional, with strong government intervention• Startups need to be in right place/sector at righttime to get the first funding they need• Equity crowdfunding is largely about creatingefficiencies in seed funding− Allows startups and investors to find each otherand do deals much more easily− The more inefficient the market, the morepotential for equity crowdfunding@seedrswww.seedrs.comSeedrs Limited is authorised and regulated by the Financial Conduct Authority
  8. 8. Culture of Collaboration• Equity crowdfunding is about returns− Investors need to profit if this form of funding is togain traction− Not some sort of 21st century alternative tocapitalism – it is capitalism made better• But it’s also about collaboration− Providing support along with capital− Backing businesses which profit in part fromcreating positive effects on the overall ecosystem− This aligns best with the European approach tobusiness@seedrswww.seedrs.comSeedrs Limited is authorised and regulated by the Financial Conduct Authority
  9. 9. Making it a Reality• Europe has the potential to be the best marketin the world for equity crowdfunding• However, we need to do a few things if wewant to fulfill that potential− Harmonised legislation− Encouraging and incentivising investors− Optimism and confidence@seedrswww.seedrs.comSeedrs Limited is authorised and regulated by the Financial Conduct Authority
  10. 10. Questions?@seedrswww.seedrs.comSeedrs Limited is authorised and regulated by the Financial Conduct AuthorityJeff Lynnjeff.lynn@seedrs.com@jeffseedrswww.seedrs.com

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