Our blog with thoughts and ideas on crowd financing

The Epipheo is here !

by lokalkapital on November 12, 2012

After three months hard work we are proud to present our Epipheo. You can reach it at: http://youtu.be/HCr4Cwzt6AQ .

Take a look at it and let us know what do you think of it.

I would like to thank Kirsten Kinne and Chris Ignizio (and their team) back at Epipheo for taking great care of us and our video.

Our platform is now a few weeks away. 

At the same time we prepare our new site which will be hosted at our .com domain.

Tell us what you think! After all everything we do, we do it for you!

/Leo

New date for our Epipheo …

by lokalkapital on November 7, 2012

We are adding music to our Epipheo. Probable release date next week.

/Leo

Presentation of Crowd Equity “Local capital” model in Brussels

A Swedish “delegation” of ten people from different public and private organisations attended the workshop "Financial instruments" in Brussels the 26 October 2012.

Approximately 100 people from all over Europe attended the same workshop; lots of interesting presentations on how different financial instruments have been implemented around Europe along with usability and result statistics. Some of the presenters went into details on regulatory topics and the upcoming programs. 

Crowd Equity (represented by Leo) got an opportunity to present its innovative model for rural financing (Local capital) using its Epipheo (www.epipheo.com ). The final version of our Epipheo will be presented on this site on Tuesday the 30/10. “Local Capital” is a “bottom - up” model in contrast of the many “top-down” models that are in use today. At the same time the model introduces a new financial instrument to the disposition of the regulators and the member States; Virtual Equity. 

Representatives from many countries showed interest in our model. 

We’ll get the opportunity to further discuss our model and the possibilities that crowd equity funding offers to small business (especially those in rural areas) in an upcoming meeting the 16/11 in Brussels.

Leo Padazakos, CEO Crowd Equity 

The first Crowd Equity platform released in Sweden!

by pesjo on September 6, 2012, tagged with
crowd equity ab, Crowd Equity Funding, peter sjögren, Crowd Funding, Crowd Equity,

The Swedish Crowd Funding platform Funded by me released it´s Crowd Funding Equity format the other day. As we, Crowd Equity AB, have not yet launched our own platform it was with great expectations we reviewed their offer.

For those not familiar with the Crowd Equity market there are two main formats, brokerage and integrated ownership.  In the brokerage format the Crowd Funding initiator provides for the crowd to make direct investments.  The initiators job is over when the shares have changed hands.  In the integrated ownership format the crowd invest through an intermediary that will make the investment on behalf of the crowd.  The responsibility of the intermediary, which could be the crowd funding initiator, has just started when the crowd has made the investment. From the crowd perspective it may feel better to make a direct investment knowing that you actually are a traditional shareholder. To be honest I am not sure that the entrepreneur will feel the same having 200 shareholders even though they only own a few percentage of the company.  In an integrated ownership format the entrepreneur will only have one shareholder who will act on behalf of the crowd and take responsibility for providing the entrepreneur with competence and business advice.

There are pros and cons with both platforms and time will show which one of the two will be able to create a sustainable financial model for small companies.  I sincerely hope that the launch of the first equity based platform in Sweden will be a starting point for media and politicians to pay more attention to the crowd funding movement and the fantastic opportunities it can create for many.

Peter Sjögren, Co-founder

 

We are getting closer to our launch!

by pesjo on August 16, 2012, tagged with
peter sjögren, crowd equity, crowd equity funding, crowd equity ab, crowd,

Finally, after months of work, we got the sought after decision from the The Swedish Financial Supervisory Authority. This means that it’s a go ahead from the authorities to start the operation. We are still in the process to put the last pieces of the puzzle together so we are almost there… Keep your eyes open, as we will launch any day.  

My partner was interviewed by Euronews a couple of weeks ago regarding the former project e-factory and Crowd Equity. What a marketing opportunity for us!

 

The video can be found on the following site: http://www.euronews.com/2012/07/24/business-parties-in-swedish-countryside/

Peter Sjögren, Chairman and co-founder

The road forward for Crowd Funding?

In the early stage of crowd funding people donated money to funky ideas, musicians, artists or things they just liked.  We now see a new phenomenon; your “donation” makes you eligible to receive “a product” that the recipient will produce or has already has produced. It is common that these kinds of projects are “overfunded” which show that there is a market for this new crowd funding approach. It seems to us that crowd funding platforms now are turning into pre-ordering forums for new and exciting products. The only black cloud on the sky is the classification of the transaction.  Can it really be classified as a donation if you get something back?  In our opinion it´s very similar to a traditional sales transaction with its own pros and cons and legal framework. We will follow this trend with great excitement.

At the same time we also see that more advanced platforms are created to facilitate equity based crowd funding.  These platforms signify a shift from an unregulated environment (i.e. donations) to a regulated framework that will attract more attention from the authorities and legislators. It is therefore important that the platforms become more transparent, attract experts from related industries and redefine their relationship with the Crowd. It is too early to say how this industry will develop. Nevertheless, we think that this industry will have a very positive impact on creating new companies, more jobs and improve our economy.  To be continued…

 

Peter & Leo

 

 

 

Crowd Equity AB and GXG has entered into a strategic alliance!

by pesjo on May 29, 2012

Stockholm 29/05/2012

New partnership offers one-stop-shop for Crowd Equity Funding

European regulated marketplace operator GXG and Swedish equity based crowd funding innovator Crowd Equity are delighted to announce that an agreement has been signed to integrate respective companies business platforms for the establishment of an unique format and process for the new and booming crowd equity market.

 The cooperation combines in essence a primary crowd equity issuance with a regulated branded secondary trading market for crowd equity funded small and medium sized companies.  GXG and Crowd Equity are first on the market with this offer.

The founders of Crowd Equity, Leo Padazakos and Peter Sjögren together with Peter Almberg the CEO of GXG, are convinced that the crowd equity market, after the introduction of the JOBS act in America, will turn into a real game changer. In order to make crowd equity funding sustainable they strongly believe that it is essential to provide a secondary regulated market.

“A well functional crowd equity market will contribute to the creation of jobs and a more sustainable economy,” says Peter Sjögren, Chairman at Crowd Equity.

“Crowd funding will radically lower the cost for fund raising and investors will enable growth, rather than providing venture capital,” says Peter Almberg, CEO at GXG.

For further information please contact:

Peter Almberg, CEO GXG Global Exchange Group, pa@gxg.se

Peter Sjögren, Chairman, Crowd Equity AB, peters@crowdequity.com

 

 About Crowd Equity AB

Crowd Equity has pioneered the Equity based Crowd Funding industry. Crowd Equity has invented the ”local capital” model primarily aimed at the development of local economies through “local investment companies (LIC)”.  The model is equally suited for other thematic groups with a strong and active Crowd. Based on a hybrid financial instrument the model successfully avoids all complex valuation issues, simplifies Due Diligence and consolidates the crowd investment to one single shareholder (the LIC). The model is based on transparency and is licensed through an end-to-end web based platform.

 About GXG Global Exchange Group AB

GXG Global Exchange Group is a holding company that through its fully owned subsidiaries GXG Technology AB and GXG Markets A/S run marketplaces and offer one stop solutions for exchange operators.

 About GXG Markets A/S

GXG Markets is an exchange operator focusing on European small and medium sized enterprises. GXG Markets operates in accordance with the MiFID legislation under the supervision of the Danish FSA (Finanstilsynet). The GXG marketplaces are run electronically using the GXG Global Exchange Group proprietary trading system, GXG Tellus. GXG Markets is since 2011 also established in Lo

Crowd Equity Funding is here to stay!

by pesjo on February 29, 2012, tagged with
Crowd Equity, crowd equity funding, crowd funding, peter sjögren, crowd equity ab,

 We were on a hearing in Brussels two weeks ago to talk about Crowd Equity Funding. The main purpose for the people attending the hearing was to get some attention from the EU administration to make it easier for Crowd Equity Funding initiatives to start and develop. The representatives from the EU Commission were very positive to the concept and to help out if needed. One thing that EU should look upon is the possibility to promote cross border Crowd Equity Funding.

 Crowd Equity Funding is still in it´s early stage in the world and we all need the attention and help from our politicians and public servants to get a fair chance to develop our platforms and get the crowd engaged.  Crowd Equity Funding in it´s right format may be a unique chance for the society to re-connect the crowd with a direct responsibility for the growth of our country.  These are big words but I truly believe that this is something we can´t ignore. 

 By Peter Sjögren, Co-founder and chairman 

A new perspective on investments.

by pesjo on February 8, 2012, tagged with
peter sjögren, Crowd Funding, Crowd Equity Funding, Crowd Equity, Slow equity,

I read an article yesterday in the leading Swedish business paper.  The key in this article was that Investors (mainly large investment companies and Institutional investors) should look upon the value of the investment not purely from a financial point of view. The investment should also create value for the society. The question is whether this in a short-term perspective will help the world economy to recover and get energized. I like the trend and I think it´s here to stay.

I hope that this “value perspective” will be part of the strategy of many Investors. I am sure that it will give the society a stronger financial system and a more sustainable business environment. Those Investors adapting this strategy will most likely, in the longer perspective, be able to attract more capital and be more profitable.

To optimize the benefit for the society in connection with investments I think that Crowd Funding is a fantastic opportunity that we cannot afford to ignore. With Crowd Funding it is possible to create a close and active link between consumers and companies/entrepreneurs. This link will create financially stronger companies and more vibrant communities as the consumers will be more interested in supporting these companies/entrepreneurs. The other thing that will be difficult for the Institutional investors to pick up is the concept of Slow Equity.

Whatever is on the macro level I think that the foundation of a new financial environment has to start with Crowd Funding. Changing the mind of the mass will most likely change the way the institutions invest in the future. Connecting the money, the benefit and the crowd is the core heart of energizing our economy and make people aware and responsible. It is now time for the government to take a more active role in the development of Crowd Funding and give Crowd Funding a chance to exist along with other initiatives that are sponsored by our government. 

 

 By Peter Sjögren, Co-founder and chairman 

Crowd Equity has taken off in Sweden!

by pesjo on January 16, 2012, tagged with
Slow equity, Crowd Funding, Crowd Equity Funding, Crowd Equity, peter sjögren,

We have now received state funding from several state agencies giving us the necessary resources to speed up education of people in Crowd Funding and to market the great potential and benefits using Crowd Equity as a basis to capitalize smaller companies. The word has spread and the politicians have now shown an interest in our platform. It would of course be a fantastic combination if state funding of small companies could be combined with equity from the crowd. Another alternative route that would give crowd equity a boost as well is a tax deduction for investment in companies being financed with Crowd Equity. We hope that the politicians will see the benefit with crowd equity and begin to transform the opportunities into real value for the society. From a macro perspective the crowd equity platform will give the state a better and more precise instrument for funding companies. The financial risk for the state will decrease as a result of the loyalty the crowd will build around these companies as new customers of the services and/or goods provided.

In turbulent times as this it is vital to find and try new solutions in order to kick-start the gloomy economy. We hope that the government in Sweden will be leading the progress towards more vital economies. We will meet with the Minister of Rural Affairs this week and will be on the same panel as the Minister of Enterprise in the beginning of February. We hope will get their attention and that we with a joint effort can take Crowd Equity one-step further. 2012 will be an interesting year for Crowd Equity and we hope to introduce our platform in Portugal, Greece and France.

By Peter Sjögren, Co-founder and chairman