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Going global and going
local: The future and
benefits of crowdfunding
Claire Ingram, Stockholm School of Economics
Robin T...
Crowdfunding in Sweden
Dr. Robin Teigland
Associate Professor
Stockholm School of Economics
robin.teigland@hhs.se
@robinte...
What is crowdfunding?
Accumulation of small investments in individual projects by large
number of individuals (the “crowd”...
SWEDEN
37m SEK
(Oct 2013)

Globally
470 000 projects via
800+platforms
Massolution2013
Form of Funding

Benefits for Funders

Donation-based
Reward-based

Donation
Donation or prepurchase

Intangiblebenefits.
...
Stockholm success story: Flippin’Burgers
Money raised:
SEK 36,502/ €4,000
Number of
investors: 186
Date funded:
September ...
Enabled local interaction, involvement
Top
5
Ame Best
rica
Re s
n
taur
a
Euro nts in
pe
Who are the funders?
Educated experts?
 85 % of respondents have university degree (vs16% of women and 22% of men
in gen...
Skoglund&Stiernblad2013
Equity crowdfunding in Sweden
No EU/EEA country can require a prospectus to be
prepared for rounds of less than 100 000 E...
Benefits of Crowdfunding
Test the market or establish a user base
Market your product or service
Obtain funding (may no...
Lots to think about....
Going global?
Reward-based?

l

l

l

l

Niche product or service?
Global appeal?
What are the rew...
How to succeed?
Are you going global or going local?
Choose the right platform– and crowdfunding type – for your project...
Thank you!

Claire Ingram
Stockholm School of
Economics
claire.ingram@hhs.se
@Claire_EBI

Questions?
Image via NewYorker.c...
Crowdfunding: going local or going global
Crowdfunding: going local or going global
Crowdfunding: going local or going global
Crowdfunding: going local or going global
Crowdfunding: going local or going global
Crowdfunding: going local or going global
Crowdfunding: going local or going global
Crowdfunding: going local or going global
Crowdfunding: going local or going global
Crowdfunding: going local or going global
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Crowdfunding: going local or going global

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Presentation at lokalekonomidagen in Knivsta, Sweden

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Crowdfunding: going local or going global

  1. 1. Going global and going local: The future and benefits of crowdfunding Claire Ingram, Stockholm School of Economics Robin Teigland, Stockholm School of Economics
  2. 2. Crowdfunding in Sweden Dr. Robin Teigland Associate Professor Stockholm School of Economics robin.teigland@hhs.se @robinteigland Claire Ingram PhD Student Stockholm School of Economics claire.ingram@hhs.se @Claire_EBI
  3. 3. What is crowdfunding? Accumulation of small investments in individual projects by large number of individuals (the “crowd”) via or with help of Internet and social networks (DeBuysereet al., 2012)
  4. 4. SWEDEN 37m SEK (Oct 2013) Globally 470 000 projects via 800+platforms Massolution2013
  5. 5. Form of Funding Benefits for Funders Donation-based Reward-based Donation Donation or prepurchase Intangiblebenefits. Rewardsin addition to intangible benefits. Equity-based Investment Return on investment if company does well. Rewards sometimes also offered and intangible benefits may motivate too. Debt-based Loan Repaymentof loan with interest. Alternativelyintangible benefitsif loan given interestfree. Ingram &Teigland, 2013
  6. 6. Stockholm success story: Flippin’Burgers Money raised: SEK 36,502/ €4,000 Number of investors: 186 Date funded: September 2011 Sector: Food
  7. 7. Enabled local interaction, involvement Top 5 Ame Best rica Re s n taur a Euro nts in pe
  8. 8. Who are the funders? Educated experts?  85 % of respondents have university degree (vs16% of women and 22% of men in general population, 2013)  42% had knowledge in same field as project they funded  49 % reported to have been better at judging project qualitydue toprevious experience The “in-crowd”  47% of “the crowd” classified themselves as entrepreneurs – compared to only 7 % of Swedish population (2012)  77 % never bought shares in unlisted company before  41 % risk lovers Skoglund&Stiernblad2013
  9. 9. Skoglund&Stiernblad2013
  10. 10. Equity crowdfunding in Sweden No EU/EEA country can require a prospectus to be prepared for rounds of less than 100 000 EUR For rounds of 5 million EUR or more, an EU prospectus is always required In Sweden the limit is 2.5 million EUR Less than 150‘non-qualified’ investors without a prospectus
  11. 11. Benefits of Crowdfunding Test the market or establish a user base Market your product or service Obtain funding (may not be a huge amount of money though) Screening device for investors Reach investors further afield or people without the right “connections” Source skills and connections? BUT in Equity crowdfunding:Lots of small investors – a problem? Ingram &Teigland, 2013
  12. 12. Lots to think about.... Going global? Reward-based? l l l l Niche product or service? Global appeal? What are the rewards? How do you reach an international audience – and stand out? Going local? l l l l l Equity-based? l l l Looking to scale up? How much equity? How to value your project? l l l l Community-specific product or service? Local appeal? What are the rewards? Do the community know about you – can you reach them? Local benefits Looking to establish a foothold? How much equity? How to value your project? Local benefits – experience, connections etc
  13. 13. How to succeed? Are you going global or going local? Choose the right platform– and crowdfunding type – for your project (keep in mind platform fees) Make the concept easily understood Make it personal? Ensure that you have initial critical mass (social media, newspapers) – NB in donation- and reward-based Feed the crowd Keep followers up to date MAGIC
  14. 14. Thank you! Claire Ingram Stockholm School of Economics claire.ingram@hhs.se @Claire_EBI Questions? Image via NewYorker.com

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