Attention Across Borders: New Research Validates GECA's Vision for Global Equity Crowdfunding

A groundbreaking academic study provides compelling evidence supporting the core principles of Crowd 2.0

The Research That Changes Everything

Since our founding, we at the Global Equity Crowdfunding Alliance (GECA) have advocated for a borderless approach to equity crowdfunding - what we call "Crowd 2.0." We've maintained that with the right regulatory framework and industry collaboration, entrepreneurs could access capital from anywhere, and investors could participate in opportunities worldwide.

Now, pioneering research published in the Strategic Entrepreneurship Journal offers empirical validation of our vision while revealing a critical factor that must be addressed: investor attention.

The 2022 study - "What Drives Cross-Border Investments in Equity Crowdfunding? The Role of International Investor Attention" by Anna Lukkarinen and Markku V.J. Maula of Aalto University—provides the first comprehensive analysis of what truly drives international investment in equity crowdfunding campaigns.

The Data Speaks: Why Cross-Border Investment Matters

The researchers analyzed 17,191 investments across 187 campaigns on Invesdor, the first European platform with a MiFID license enabling cross-border equity crowdfunding. The results were striking:

  • 40% of successful campaigns would have failed without cross-border investment
  • A mere tripling of international page views increased cross-border investment odds by 60%
  • 1,469 investments came from investors in 64 different countries

This data confirms what GECA has long advocated: a truly global approach to equity crowdfunding isn't just desirable - it's essential for campaign success.

The Attention Bottleneck

The study's most important finding aligns perfectly with GECA's advocacy for greater global accessibility: investors can't invest in what they don't see.

While regulatory barriers have received significant attention (and rightly so), this research reveals another critical barrier: limited investor attention. In the researchers' words:

"A wealth of information creates a poverty of attention."

The data shows a clear causal chain:

  1. Campaigns that receive more views from foreign countries are significantly more likely to receive investment from those countries
  2. Marketing activities targeted at foreign investors drive attention
  3. This attention directly translates to investment

Beyond Distance: The Digital Revolution

Perhaps most surprising was the finding that once investor attention is captured, traditional barriers like geographic distance, cultural differences, and institutional variations have minimal impact on investment decisions.

This validates GECA's central premise: in a digital-first funding environment, artificial geographic boundaries should not limit capital flow.

The Four Pillars of Crowd 2.0: Research-Validated

This groundbreaking study provides empirical support for each of the four pillars of GECA's Crowd 2.0 vision:

1. Cross-Border Collaboration

The research confirms that platforms with cross-border capabilities (like Invesdor's MiFID license) enable significant international investment. However, it also reveals that regulatory access alone isn't enough - active cross-border visibility strategies are essential.

2. Standardized, Smarter Regulations

The study demonstrates that where regulatory frameworks enable cross-border investment (as with MiFID II in Europe), investors do take advantage of international opportunities. This validates GECA's call for harmonized global regulations.

3. A Thriving Secondary Market

While not directly addressed in the study, the findings on investor attention suggest that increased visibility of secondary market opportunities would similarly drive liquidity - a key GECA priority.

4. Education & Investor Empowerment

The research showed that investors are more likely to back campaigns when someone on the founding team shares their nationality. This highlights the importance of targeted education that helps investors understand opportunities across diverse contexts.

Implications for the Ecosystem

This research offers clear guidance for everyone involved in equity crowdfunding:

For Platforms:

  • Invest in tools that enhance international campaign visibility
  • Provide analytics on cross-border attention metrics
  • Facilitate multilingual campaign materials

For Entrepreneurs:

  • Highlight team diversity in campaign materials
  • Allocate marketing budget specifically for international investor targeting
  • Consider the attention economy as carefully as the funding target

For Regulators:

  • Recognize that effective cross-border frameworks must address visibility, not just legal access
  • Consider how investor education might vary across national contexts
  • Support standardization that makes cross-border campaigns more discoverable

For GECA and Industry Associations:

  • Advocate for attention-enhancing policies alongside regulatory reform
  • Develop best practices for international campaign visibility
  • Share cross-border success metrics that highlight attention factors

GECA's Path Forward

As an alliance advocating for global equity crowdfunding, this research reinforces our mission while highlighting new dimensions for our work:

  1. Regulatory Advocacy: Continue pushing for harmonized frameworks that facilitate cross-border investment, with added emphasis on visibility enhancement
  2. Industry Standards: Develop best practices for international campaign marketing and attention metrics
  3. Education Initiatives: Create resources to help investors discover and evaluate cross-border opportunities
  4. Platform Collaboration: Facilitate knowledge sharing among platforms about effective international visibility strategies

Conclusion: Attention Is the New Currency

The findings from Lukkarinen and Maula's landmark study validate GECA's vision for Crowd 2.0 while revealing a critical insight: in the battle for cross-border investment, attention is as important as regulation.

As we work toward our vision of a borderless investment ecosystem, we must recognize that opening regulatory doors is only half the battle. We must also ensure investors can see through those doors to the opportunities beyond.

This is why GECA exists - to advocate for a world where innovation knows no borders, where capital flows freely to the best ideas regardless of geography, and where both regulatory frameworks and visibility mechanisms enable truly global equity crowdfunding.

To join GECA in advancing global equity crowdfunding, visit thegeca.org.

Download our Crowd 2.0 Manifesto to learn more about our vision for borderless equity crowdfunding.

Reference: Lukkarinen, A., & Maula, M. V. J. (2022). What drives cross-border investments in equity crowdfunding? The role of international investor attention. Strategic Entrepreneurship Journal, 16(1), 129-159. https://doi.org/10.1002/sej.1424

by GECA

The State and Future of Equity Crowdfunding in the U.S. with Ruth Hedges | GECA Podcast

The State and Future of Equity Crowdfunding in the U.S. with Ruth Hedges | GECA Podcast

In this compelling episode of Crowdfunding Chronicles, GECA’s Andy Field sits down with Ruth Hedges, the legendary “Queen of Crowdfunding” and one of the original architects of the JOBS Act that legalized equity crowdfunding in the United States. As a pioneer who spent two years walking the halls of Congress to transform a 22-page startup exemption into federal law, Ruth brings unparalleled insight into why the US crowdfunding industry has dramatically underperformed expectations since 2012. Despite creating the regulatory framework that inspired crowdfunding legislation worldwide, she reveals how 650+ pages of complex regulations have stifled an industry that should be thriving alongside the crypto boom. From the lack of industry collaboration to restrictive marketing rules that prevent platforms from promoting their own offerings, Ruth provides a candid assessment of the regulatory barriers preventing crowdfunding from capturing more than its current “pathetic” share of startup funding. She also shares her sobering views on how recent political changes may further impact the industry, while emphasizing the critical need for global collaboration—exactly what GECA aims to achieve. This episode is essential listening for anyone seeking to understand the regulatory landscape that shapes modern crowdfunding and the collaborative solutions needed to unlock its true potential.

ALSO AVAILABLE ON

Share this article

  • X
  • black x

Andy Field: [00:00:00] Hello and welcome to the latest episode of Crowdfunding Chronicles, the GECA podcast, brought to you by the Global Equity Crowdfunding Alliance. I’m your host, Andy Field. I lead the GECA Steering Committee and this podcast is your go to source for insights into the world of crowdfunding, from policy changes to global trends and everything in between.

So following on from the discussion we had recently with EuroCrowd’s Oliver Gajda around the design and impact of ESCPR in the EU, today it’s the turn of the United States to be in the spotlight. And today’s episode is interesting as we explore the current state of equity crowdfunding in the United States, including what impact the recent administration changes could have for the industry, from regulatory shifts to emerging trends like blockchain and tokenized securities.

And I’m delighted that joining me today is our special guest, Ruth Hedges. Ruth is also known as the Queen of Crowdfunding and has kindly agreed to share her expert insights on what’s next for crowdfunding in the States, how it can [00:01:00] evolve to reach its full potential as a mainstream funding solution. So Ruth, welcome to the podcast.

It’s an absolute pleasure to have you here.

Ruth Hedges: So much. Thank you for inviting me. I’m excited to have this conversation today.

Andy Field: No, I’m really looking forward to it. I think we can probably jump straight in Ruth, if that’s okay. I’m going to start off just by asking you a little bit about about your background.

You’ve been a trailblazer in the crowdfunding industry in the States for years now. And would you mind starting just by sharing what initially drew you to equity crowdfunding and how you became such A driving force in the space and then actually touch upon how you became known as the queen of crowdfunding.

Ruth Hedges: Sure. I actually didn’t come into the equity crowdfunding space. I actually am one of the original pioneers of the bill called title 34A6 in the jobs act signed into law by President Obama in 2012. which legalized regulation crowdfunding in the United States. I was one of the original [00:02:00] people who drafted a document called the Startup Exemption and the Startup Exemption was 22 pages long and we used this to shop around and start to open up this conversation to congressmen and senators and Anybody who could listen, anybody who would listen to us at the time this was about 15 years ago during the recession in 2008, 2009.

There was no money in those days. There was no PPP loans or anything to help rescue when the mortgage industry crashed the banking industry in the United States, which ultimately crashed the around the world, the economy and put us all into a recession. So the VCs dried up, the angels dried up, all the money dried up and there was

still plenty of money in the hands of the general public. And so we started having these conversations about this idea of you had to [00:03:00] be an accredited investor to become an investor. Which stifles the economy because there’s trillions of dollars in the hands of the rest of us. We said if we could go to Congress, we’re gonna have to go to Congress in the United States to get a bill passed to change this because it’s not legal.

And so that’s how it all started. And we spent over two years walking the halls of Congress in the Actually, Whoopi Goldberg was one of our original sponsors.

Andy Field: Oh, okay.

Ruth Hedges:She helped buy plane tickets and fly people over to D. C. to meet with different congressmen and have this conversation. And then Steve Case, the founder of AOL, joined us.

The U. S. Chamber of Commerce eventually joined us. And we just started gathering a group of powerful people who helped to push Help work with us to push this through and get it signed into law. And then in 2012, I decided now we have this new law. Nobody’s heard of. So how are we going to get the word out?

And I live in Las Vegas. Which is [00:04:00] the convention capital of the world. And so we, I thought let me have this little bootcamp. And I got up, it was because it was a recession. Hotel space was very cheap and I was able to go to the Ritz Carlton and make Las Vegas and get like the spectacular room for like pennies on the dollar.

I put the word out that I was going to, I invited some of the people who had helped write the bill and who were knowledgeable now, because we’ve just spent two years. Discussing this with congressmen and senators. So we knew this better than anybody else. And it was like, okay we don’t really know how this is going to work, but at least we know what it is and we can share it.

And so about 125 people showed up from across the country, lawyers and accountants and financial advisors and people who thought, oh, this might actually turn into an industry and I want to play a role in it. So I better come and start showing, getting to know what this is all about. Meeting the right people and all of that.

And because it was so successful, I did it for the [00:05:00] next six years. And I turned this boot camp into the global crowdfunding convention which eventually attracted thousands of people and people from 25 countries, which introduced it to the rest of the world. So that’s how a lot of people took this information from my convention, went back to the countries they came from, people from Italy, Australia, Singapore, it just, all over the world, and then they did what we did.

They took it. They got a group of people, they went, drafted some kind of a draft of a bill, went to the, people who make decisions in their country, and now we have regulation crowdfunding around the world.

Andy Field: Wow.

Ruth Hedges: So that’s how I am one of the pioneers of the industry. When I was putting on one of the years, I think it was either 2013 or 14 Forbes magazine was one of the sponsors.

And so they wanted to write an article about me and in it they wrote that I was the queen of crowdfunding. So [00:06:00] I said, okay I’ll keep that. Yeah, absolutely. And that’s how I became the queen of crowdfunding. It was not by me saying I’m the queen of crowdfunding. It was actually. Forbes magazine that coined me the queen of crowdfunding and it stuck.

Andy Field: It’s stuck.

Ruth Hedges: Yes. Yes. And I actually have a website queen of crowdfunding. com where I I actually have a course. That I sell along with my consulting services, and it’s at Queen of Proud funny dot com. So it’s been part of my brand for many years.

Andy Field: And you’re also a supporter of GECA, which is fantastic.

So we really appreciate that. So so yeah, just so that was back in 2012 that became law. It was signed into law by Barack Obama. You were involved in obviously the all of the work and lobbying around creating that. How, given your experience and you’ve been involved in the industry since before then as you’ve already said but how would you has crowdfunding evolved the way you expected it to since the Jobs Act was enacted in, in, in 2012, [00:07:00] do you think, given your experience, how would you describe the current state of crowdfunding and has it evolved like you thought it would do back then?

Ruth Hedges: So that’s a very loaded question because I’m very passionate about this particular industry. Obviously, having been one of the people to give birth to it and seeing it, thinking of all the potential that it could have, it is a miserably failed. my expectations. There was no crypto when we started this.

There was no Bitcoin. There was nothing in the crypto industry. There wasn’t the blockchain when we started this. When you think about how that industry launched after we launched this and the trillions of dollars that go in and out of crypto currency. every single minute of every day, all over the world.

And then you look at how small the industry in the United States, we are the parents of this industry. And we can’t [00:08:00] even do a few billion dollars. That’s pathetic. It’s just embarrassing, frankly, because we in the United States have an enormous amount of wealth.

Andy Field: Yeah,

Ruth Hedges: an enormous amount of wealthy people.

And this isn’t even a wealthy person’s. investment activity. It’s actually meant to be an average person, meaning you can put 100 in, right? So what excuse do we have? And in the regulation that we, that were passed into law in the United States, you can, if you are selling, if you are an issuer on a funding portal, you can solicit money from anyone, anywhere in the world.

So there’s more trillions of dollars in the rest of the world. Of all the people you might know in France or Italy, or you just might want to market to people in those countries. So the idea that we are sitting here since 2012, and it’s now 2025. And the United States has only done a few [00:09:00] billion dollars of regulation crowdfunding all the funding portals for title three.

I’m not talking about Reg A or any, I’m just talking about title three is, or what’s referred to as Reg CF is inexcusable to me. And I know you have more questions to ask. I will get into why I think this is the problem but it is.

Andy Field: Yeah, no, yeah, that’s clear. And I can absolutely understand why you’re saying that because I suppose the vision back in 2012 was to unleash this potential.

And it’s not really happened to the extent that it should have done. And, there’s all sorts of things that are there that can enable it, the technologies there, for example. So there are other things that are clearly preventing things. So you’re right Let’s get to another question.

If we move on to the current landscape in the U. S. And probably, this probably echoes around, around the globe actually, but I’d love to hear your views on what you feel are the biggest challenges that the platforms themselves and the issuers are facing in the U. S. [00:10:00] today. So I suppose they will be contributing to that sort of underperformance of the industry as a whole.

What would be the biggest challenges you think?

Ruth Hedges: So when we drafted the first Iteration of this 22 pages and shopped it around. When it became a law in the United States, it took the government three years to re to write the laws on how this would work. And guess how many pages those laws are today?

There are over 650 pages of rules and regulations. For issuers, investors, funding portal owners, this one, that one, it is so complicated and onerous that we were like doomed from the start. It’s just indescribable. It’s impossible for me to describe how complicated they made something that should have been so simple.

Because first of all you can go into a casino because I live in Las Vegas [00:11:00] and you can put as much money on a craps table or you know what, right? You can, we just had the Super Bowl, right? And people bet as much money as they wanted on the Super Bowl and nobody stopped them. Yeah. You can buy lottery tickets all over the United States, in every city and town in America, in every 7 Eleven, you could go into a and buy as many, and nobody cares how much money you’re losing, you’re winning, nobody cares.

But when it comes to making an investment, all of a sudden the government has to get in, make it so complicated, make it onerous, make it this, make it that, worry about, put caps on how much you can invest how many offerings you can invest, this whole thing is so complicated. And then, obviously on the issuer side, if you are a startup think about how.

Much work you have just starting a business.

Andy Field: Yeah.

Ruth Hedges: You desperately need this money. And what does the government do? The government comes in and makes it more comp, gives you even a laundry list of more things [00:12:00] to do before you can start to raise the money,

Andy Field: yeah, so the whole process from end to end is incredibly laborious.

And it was probably quite a shock to you when you saw the, maybe it wasn’t a shock.

Ruth Hedges: Yeah, because we, remember, we were in the middle of a recession, we were trying to create jobs, called the Jobs Act, and we were trying. To help companies get funded because 60 percent of the jobs in the United States of America are created by startups.

They’re not created by Walmart and all these big corporations. They are created by startups. So if we don’t help startups get launched and funded and be successful, we lose job creation. And then the whole economy just tanks, for again, for us to be sitting here 15 years later and not to, for me to not be sitting here on this podcast with you telling you that, oh, this has been a great success.

Tens of billions of dollars have been raised. It is [00:13:00] incredibly sad, frankly.

Andy Field: Yeah, and I suppose, I suppose there may be some some light on the horizon, so to speak. But I suppose, given obviously the recent political changes. But I guess before we talk about what’s likely to happen soon, given those recent political changes, what do you think needs to happen?

Next to push equity crowdfunding into the mainstream is a real viable alternative to the traditional venture capital and private equity. And I suppose that’s both from the regulation that the platforms have to adhere to and also for the investors and also for the startup businesses themselves.

What do you think really needs to happen? It might be a very short answer this one.

Ruth Hedges: First of all, the crowdfunding industry needs to be more collaborative. What you’re doing is incredibly important.

Andy Field: Yeah.

Ruth Hedges: Because if you look at the Consumer Electronics Show, CES, every year they come to Las Vegas, it’s the biggest convention in the world. 150, 000 people show up from all over the [00:14:00] world. Sony and, Apple and all the big corporations are there. And they all play nice. They all, they’re there to make deals with each other because they know this is how you build, they build their business when everybody’s successful. For the good of the industry, absolutely right.

Andy Field: Exactly

Ruth Hedges: But not in equity crowdfunding. You never see any of these companies together in a room or in any kind of collaborative way. They want to own the space and they’re just going to put everybody out of business and they’re going to be the only funding portal left or. Law firm left or whatever, and it has been to the detriment.

Of the entire industry.

Andy Field: Yeah.

And you’re right. We are. We are trying to do something about that. That’s exactly what we’re trying to do that the way that just to explain to everybody. I’m sure most people will know this, but the whole reason for GECA is to try and promote borderless equity crowdfunding and without that.

Sort of the voice in numbers, it’s the power is in our numbers, definitely. And people coming together to, to try and echo the same sentiment is absolutely crucial to what [00:15:00] we’re doing. So I completely agree with what you’re saying, Ruth, there. And I think, for things that you’re talking about as well as the things that I’m talking about.

Yeah, would echo that.

Ruth Hedges: And then the other problem is the amount of deal flow. You have organizations all over the world, excuse me, my nose is running today

incubators, accelerators, in the United States we have SBDCs and all these small business development centers, all across the country trying to help small businesses because we are the engine of the economy, right? None of them, literally none of them, have any information about regulation crowdfunding.

Of any subsequence, maybe there’s somewhere on a website page way deep behind some of the millions of walls. Why isn’t this center, this, we had to go to Congress and get a law passed. We had to have a president sign this into law. If this was so important that it had to go through that process to become legal, why isn’t the government putting it front and center?

And when, for example, the government gave out money during COVID, they gave out all these checks. Why didn’t they tell [00:16:00] people, Hey, if you don’t need to use this to pay your bills, make an investment in a small business, go on the funding portal and throw a hundred bucks into a company and be part of their journey.

Join them in this experience. It’s a fun thing to do. Even if you never see a return on your investment. You are creating jobs, you are creating tax revenue, and you are getting to experience something in a company that you may, Never in your whole life be able to do yourself, but if you’re an investor, you get to feel like you’re doing it, even though they’re doing all the work.

You know what I’m saying? Yeah. So there’s so many people that have spent their whole life saying, Oh man, I always wanted to launch a restaurant. I always wanted to have my own bar or I wanted to make my own wine or whatever it is. Now you could be part of somebody else’s company that’s doing that.

You know what I mean? And just go along for the journey.

Andy Field: Yeah, so people need to be educated about the industry and the industry needs promotion, right? And that’s I’ve heard that in many jurisdictions [00:17:00] actually not just in the States I think it I think that is the same all across the globe Certainly for the people I’ve been speaking to it’s that education piece and that promotional piece and just The awareness just isn’t there.

It’s hidden. You’re right. It’s absolutely hidden. So yeah, I, so that’s very clear that’s something that you think needs to happen. And I have

Ruth Hedges: always been, I have always said we need billboards across America. We need buses wrapped with this messaging on it. We need commercials on television.

We need entertainer celebrities talking about this. This is such a powerful mechanism if it were to be really scale and if people knew again, there’s trillions. People throw their money at some of the most ridiculous things. If you go on tick tock or you go into Amazon, are you going to any of these platforms and see?

The millions of gadgets that somehow we all need to survive. We didn’t have, we were growing up. Our parents surely didn’t [00:18:00] have all these gadgets. We had a knife and a cutting board and a spoon and a fork, and we somehow prepared food and did all these things without a thousand different cats. But if you look at every industry now, there’s like a million gadgets and being sold to the public and the public is wasting their money.

So much stuff instead, they could be putting some money investing in and one of these little investments could turn out to be, the next big thing and all of a sudden, some little investment they made 10 or 15 years ago, they completely forgot about. Yeah,

Andy Field: and I guess for that to happen, there’s going to be a whole lot of thinking done around some of the rules and regulations around just simply the marketing and, in the advertising, because there’s, I don’t know so much about the states, but certainly in the UK, for example, there are very strict rules about marketing.

And yeah, that has to be looked at as well. Okay. Yeah, that all makes perfect sense. So lots happening over in the States in turn, politically, we’ve all been watching with great interest from everybody from all [00:19:00] over the world has, of course, and with all those recent changes in the US administration, have you noticed anything happening?

Any shifts in policy or regulatory focus that’s affecting equity crowdfunding? Does anything in particular stand out that you’re seeing the shoots of? Maybe now, or is that not happening yet?

Ruth Hedges: No, I don’t think this administration is going to help equity crowdfunding because they’re trying to dismantle all of these.

Institutions that keep us safe and keep us keep the country operating. They’re trying to take away social security from 73 million Americans. They’re trying, they’ve already harming farmers. The economy, if there’s no money, if people aren’t making a living, whether that’s a social security check or it’s a.

Or it’s running their farm because they got USAID, right? And that helped them keep their farm. And, why do you think milk has been so cheap for 50 years? Because it was subsidized. If you [00:20:00] stop all those things, and you make everything more expensive, the population will not have any indiscretionary money to gamble, to invest, or do anything.

They won’t even be able to live. And frankly, I really don’t understand how this is going to help these billionaires at the top when all of the institutions below and all the corporations below collapse, because there’s nobody left with any money to do anything. Am I looking at this wrong? No, not at all.

It’s, it’s, I haven’t heard any views on it, to be honest. It’s really interesting to hear that view. So the SEC obviously plays a crucial role in regulating crowdfunding. There’s been no proposals or rollbacks or under the administration that you think is going to

Ruth Hedges: Look, they’ve only been in office for, what, three weeks, a month?

Andy Field: Yeah. A month,

Ruth Hedges: not even a month. They were, yeah, a little more than a month, maybe. Obviously they haven’t gotten to everything. But

Everything they have done to this point, literally [00:21:00] everything they’ve done to this point, has been counter to what would be productive for small businesses. 100%. Look, if you take people’s Medicare, their ability to stay healthy, or you take away all the things that, that keep us healthy and the institutions that we can go to stay healthy.

How is that going to help people being able to go to work and keep the economy and the engine of this country moving if we’re half of us are sick because we couldn’t get a flu shot because they decided that flu shots are stupid. You know what I mean, like this, they’re going to wake up in two years when we have the next election that they’re all going to get voted out of office because this is An absolute disaster.

It’s already showing to be a disaster and it’s just going to get worse. Unfortunately, a lot of people are going to suffer unnecessarily for the next two years. It may be even longer because it’s going to take us a long time to clean up this mess, [00:22:00] it’s already catastrophic.

Andy Field: So certainly short term, you’re not seeing any any, anything positive for the industry in terms of what the new regime is going to be bringing?

Ruth Hedges: None.

Andy Field: Okay let’s see what let’s well, let’s hope that’s not going to be the case, but I completely take on board your opinions on it. And I suppose so. So just moving to the we touched on it earlier, the technological side of things, obviously, geckos got a primary focus of helping to make equity crowdfunding truly borderless.

We’ve already mentioned that technology can obviously pay play a huge part in that with the rise of blockchain tokenized securities and that kind of thing. And so how do you see these technology is playing a bigger role in the future of crowdfunding in the States. If if they can.

And also perhaps beyond as well.

Ruth Hedges: So so there’s another it, I’m a big proponent of cryptocurrency. I have. Been I have owned cryptocurrency for since [00:23:00] 2017. I bought some Bitcoin. I wish I bought it earlier as I’m , but I still got in when it was fairly too. You were an

Andy Field: early adopter.

Yeah. Yeah, absolutely. Yeah.

Ruth Hedges: I got a couple of Ethereum coins at $200 a coin, so that was a, I wish I had, again, I bought, I wish I had bought more, but at least I was, I dipped my toe in the water early on. So I do believe in it, but. The problem is, once again, that if you have amassed some amount of cryptocurrency and now you want to use it to invest through regulation crowdfunding, at least in the United States, and I imagine in England as well, because there’s caps on how much you can invest in a year, the average American that makes less than 100, 000 can only invest a few thousand dollars.

So how is that helping if you just made all this money on Ethereum or Bitcoin this year and you say, now I have some extra money, [00:24:00] let me go and use, maybe there’s a funny portal that lets me. invest using Bitcoin. I have the Bitcoin. I want to make a nice investment. I could actually really help this company and so do 10 of my friends because we all just made all this money on Bitcoin when it went to 100, 000.

But guess who’s coming in to stop us? The government. They’re saying no. You’ve already, you already capped your, you’ve already invested the cap this year because you invested in somebody. Three months ago, and so you have to wait until January of 2026 before you can make another investment.

Does that make any sense?

Andy Field: Yeah, I take the point. I take the point. I guess the technology, the underlying technology itself that, the blockchain tokenized securities Yeah that already exists to help the platforms actually carry out their activities day to day, the transparency of the transactions, that kind of thing, can all be can all be of benefit and hopefully That’s how I think it will be used in the future.

And obviously [00:25:00] that the utilization of crypto, for example, it could be really useful, particularly when you’re looking at cross border transactions. Obviously not having the very expensive fees associated with currency conversions and that kind of thing could be a risk.

Ruth Hedges: But you also have issuer the funding portal first, and then the issuer. To accept cryptocurrency. Yeah, absolutely. If they don’t want it because they don’t believe that it’s, or they’re worried that they raised a million dollars today and they wake up tomorrow and all of a sudden Bitcoin has gone down 10%, they’re going to freak out and they’ve just lost 10 percent of their investment.

They’re not going to understand the long term. You know what I’m saying?

Andy Field: Yeah. Yeah. Yeah. There are several. Yeah,

Ruth Hedges: there’s all of that. There’s all of that has to get work through as well for it to actually be a viable option. Yeah, definitely

Andy Field: Some hurdles that need to be overcome.

Okay, so this will be an interesting one. What advice would you give to the policymakers, the regulators and any industry stakeholders really who [00:26:00] want to see equity crowdfunding thrive on a global scale, including that notion of the genuine borderless investment. If you could give them any advice, and realistic advice, something that they might actually take on board, what is it you’d say to them?

Ruth Hedges: Get out of the way, first of all. Just, we don’t need all this regulation. It is not helping. I know that is probably not going to go, it’s on deaf ears. It’s not going to make any difference that I’m saying this. Because millions of things in our lives are over regulated and then other things that are very important are under regulated.

You know what I’m saying? We have, like, all of a sudden this last month, a million recalls of. Tuna fish was recalled, and this was recalled, and that was recalled. You know what I mean? And you think, why wasn’t it checked before it got in the can?

Andy Field: Yeah.

Ruth Hedges: Why do we have to wait and then on the shelf in the supermarket?

You know what I mean? For botulism, I’m talking botulism recalls. Some of this stuff is really scary. Wow. Yeah,

Andy Field: yeah.

Ruth Hedges: So go use your [00:27:00] regulatory body and go do those kind of things. In this instance, This entire industry in every country that I’m aware of is overregulated. Again, they don’t care how much money you spend gambling.

They don’t care how much money you spend. Shopping even look at all the people that have shopping addictions. They just can’t stop themselves You know what i’m saying? So I feel like that is the first thing they need to look at how their regulatory zealous regulatory personality Is harming the ability for this industry to scale?

Because look at again look at cryptocurrency right when it launched in all these What they call shit coins launched, right? There’s no regulation on these now granted. A lot of them originate in other countries, but still they allow them to be purchased in it by Americans here in other countries have regulations as well.

And. They’re not, nobody cares every [00:28:00] time Bitcoin goes up and down, and billions of dollars are being lost by, in our country, by Americans. You don’t hear a peep out of these regulators, or the Congress, or the President, or anybody. That’s just the nature of being an investor, right? So why do they care so much about Equity crowdfunding.

I just, I don’t understand this. It doesn’t. Yeah.

Andy Field: So maybe it’s as opposed to some of that advice, it would almost be to step back a little, to see the wood for the trees and actually understand that the regulation is probably not doing what it should do, which is to protect, protect the consumer, protect the business, protect the investor and perhaps prohibiting or inhibiting, um, the growth and the, and, and the fact that this industry needs to thrive, it’s being completely inhibited by the regulation at the moment.

So perhaps something needs to be done along those lines. Yeah,

Ruth Hedges: And then, the due diligence, I think there needs to be more focus on due diligence. Of the companies that are actually raising the money. I think the valuations are ridiculous. These companies, they, there [00:29:00] has to be some other way of determining the value of a company besides just letting people pull a number out of a bag in many instances.

I think that the marketing, oh my God, the marketing, the, in the United States, funding portals are not allowed to market the offerings on their funding portal. All they can do is make an announcement one time and just tell the public, hey this campaign went live today. That’s it.

Andy Field: Yeah. They

Ruth Hedges: They can’t do any other marketing because the government says that’s acting as if you’re favoritism.

Like you favor this one or that one.

Andy Field: Advising almost. Yeah. Yeah.

Ruth Hedges: We’re doing something to that effect. What kind of an industry, what kind of a business doesn’t, isn’t allowed to market its customers or its clients or whatever, if they’re representing them, which is what a funding portal does. It’s a showcase platform. That’s all it really is. So there’s that. Yeah. And then. That in, in addition to the other restrictions [00:30:00] on the issuer for marketing, makes the ability for an issuer to build a crowd. ’cause it’s called crowdfunding . It is so difficult. Yeah. Again, every time, if you look at these 600 plus pages of regulations, the amount of restrictions that hamper and paralyze and stifle, this econ, this entire industry.

It’s just mind blowing. And that’s why we are where we are. We are impotent in being able to really grow this thing,

Andy Field: yeah, so there’s a lot to be working on here. Ruth, we’ve got about two minutes left. It’s been a, it’s been a real pleasure talking to you today. But I always ask this question and it wouldn’t be the Crowdfunding Chronicles if I didn’t ask you this question.

If you could change one thing about the equity crowdfunding industry today, what would it be and why? Just one thing.

Ruth Hedges: Fun thing.

Andy Field: Yeah.

Ruth Hedges: I already talked about the regulations. I’m not going to talk about that. I [00:31:00] really feel like the industry, all the players, all the people need to get into the same sandbox and play nice together.

I really feel like that would change the entire industry.

Andy Field: Collaboration. Yeah.

Ruth Hedges: Yes, because we all have A passion for this. We all have a desire to see this industry grow and become what we imagine it could be, right? But if we are in our individual silos doing our own little thing over here and there it’s, we’re going to be here 15 years later having the same conversation, you know?

Andy Field: Couldn’t agree more. Couldn’t agree more. And that’s exactly what we’re here to try and help people do. Ruth. Thank you again for sharing all your valuable insights with us today. It’s clear that equity crowdfunding in the U. S. is traveling through some very interesting and tricky times. And we’re going to be watching closely just to see how that may have a ripple effect across the world in terms of how other jurisdictions follow suit and how they’ll be affected by what’s happening over there.

[00:32:00] So thanks once again, Ruth, really appreciate it. And hopefully we can talk again soon. Thank you, as always, to our listeners for tuning in to the Gecko podcast. Please stay tuned for future episodes, where we’ll continue exploring the evolving world of crowdfunding and the innovations that are shaping its future.

Thanks very much.

by GECA

Crowdfunding Chronicles: Pioneering the Future of Borderless Investment – A Reflection on Episode 7 with Ruth Hedges

The Global Vision of Crowdfunding

The Global Equity Crowdfunding Alliance (GECA) stands as a beacon for a more interconnected, borderless investment landscape, fostering collaboration across nations to make equity crowdfunding accessible to all. In the latest episode of Crowdfunding Chronicles, Andy Field, Chair of the GECA Steering Committee, engages in an enlightening discussion with Ruth Hedges, a true pioneer in the industry, famously dubbed by Forbes magazine as the "Queen of Crowdfunding."

In this episode, we delve into the evolution of crowdfunding in the United States, the challenges it faces, and the untapped potential that remains within this space. This blog aims to unpack the insights from the episode, reflecting on the current state of crowdfunding and envisioning its future in a globally integrated economy.

The Birth of Equity Crowdfunding: A Journey from Recession to Regulation

Ruth Hedges’ journey into crowdfunding began not as an investor or platform owner but as an architect of the JOBS Act, which President Obama signed into law in 2012. This legislation laid the groundwork for Regulation Crowdfunding (Reg CF) in the U.S., democratizing access to investment opportunities for non-accredited investors.

However, as Ruth poignantly points out, the reality of equity crowdfunding’s adoption in the U.S. has fallen far short of expectations. Despite the framework enabling broad public participation, the industry has only raised a few billion dollars - a stark contrast to the multi-trillion-dollar cryptocurrency market, which emerged after crowdfunding but rapidly outpaced it in terms of financial activity.

This discrepancy raises critical questions: Why has equity crowdfunding not scaled as envisioned? What roadblocks have stifled its potential? And, most importantly, how can we unlock its true power?

 

Ruth Hedges, "Queen of Crowdfunding"

The Barriers to Crowdfunding’s Success in the U.S.

Ruth identifies three core barriers that have inhibited the growth of the equity crowdfunding industry in the U.S.:

1. Over-Regulation and Complexity

While the original draft of the Startup Exemption was just 22 pages long, by the time the JOBS Act regulations were implemented, the rulebook had ballooned to over 650 pages. These extensive compliance requirements make it challenging for startups to access funding efficiently and for investors to navigate the process.

Unlike gambling, the stock market, or even cryptocurrency trading - where regulations are either minimal or permissive - equity crowdfunding has been burdened with restrictions that limit marketing, cap investment amounts, and deter potential issuers from engaging with the system.

2. Lack of Awareness and Education

Despite being over a decade old, Reg CF remains largely unknown to the general public. Many incubators, accelerators, and even government agencies that support small businesses fail to educate entrepreneurs about equity crowdfunding as a viable alternative to venture capital or traditional bank loans.

As Ruth explains, during the COVID-19 pandemic, the U.S. government issued stimulus checks but failed to promote crowdfunding as a means for Americans to invest those funds into small businesses. If just a fraction of those funds had been directed towards Reg CF campaigns, the industry could have seen an explosive surge in capital inflow.

3. Fragmentation and Lack of Industry Collaboration

Perhaps one of the most critical insights Ruth shares is the lack of unity among crowdfunding platforms, stakeholders, and regulatory bodies. Unlike industries like consumer electronics - where companies like Apple, Sony, and Samsung engage in cooperative competition at global events like CES - equity crowdfunding platforms often operate in silos, failing to create a unified movement that promotes the industry as a whole.

GECA, with its mission of borderless crowdfunding, is a direct response to this issue - championing industry collaboration as the key to unlocking a global investment ecosystem.

The Future: Unlocking the True Potential of Equity Crowdfunding

So, what needs to happen for crowdfunding to truly become a mainstream financial instrument?

1. Reducing Bureaucratic Barriers

Governments and regulators must recognize that excessive red tape is not protecting investors but rather suffocating an industry with immense potential. Simplifying compliance requirements, removing investment caps, and allowing platforms to engage in more robust marketing could significantly accelerate industry growth.

2. Leveraging Technology: Blockchain and Tokenized Securities

The rise of blockchain and tokenized securities presents an opportunity to make cross-border crowdfunding seamless. By leveraging blockchain-based smart contracts, investments can be securely executed without intermediaries, reducing costs and enabling micro-investments on a global scale.

However, for this technology to be effectively integrated into crowdfunding, governments must create clear and favorable regulatory frameworks - ensuring that tokenized equity offerings are legally recognized.

3. Education and Public Awareness Campaigns

A major step forward would be nationwide and global education initiatives - involving universities, business incubators, and even mainstream media - to make equity crowdfunding a known and respected investment avenue.

Imagine a world where billboards in every major city, television ads, and influencers on TikTok and Instagram promote investment in small businesses through crowdfunding. This would shift public perception, fostering a culture of mass participation in economic development.

4. Industry-Wide Collaboration

The crowdfunding industry must unite - platforms, legal experts, marketers, and regulatory advocates must come together to create a global movement. This is where GECA plays a crucial role, advocating for a harmonized regulatory approach that allows for borderless investment.

By establishing international crowdfunding summits, cross-border funding syndicates, and standardized investment frameworks, the industry can break free from its current stagnation and unlock a new era of financial inclusion.

The Call for a Crowdfunding Renaissance

Listening to Ruth Hedges in Episode 7 of Crowdfunding Chronicles, one thing becomes abundantly clear: equity crowdfunding is at a crossroads. The potential for a thriving, borderless investment ecosystem exists, but realizing it requires a collective effort from industry leaders, regulators, and the global investor community.

GECA’s vision of borderless equity crowdfunding is not just an idea - it is a necessity for the modern global economy. If we can address the challenges outlined in this discussion, crowdfunding can finally take its place as the financial revolution it was always meant to be.

📌 Learn more about Ruth Hedges and her pioneering work in the crowdfunding industry: 👉 https://queenofcrowdfunding.com/ 

🎙️ Listen to the full GECA podcast featuring Ruth Hedges: 👉 https://youtu.be/Ehu8xeDaA4E?si=BRtHe11z69RRx30O 

Join the Movement

At GECA, we are committed to driving this transformation. If you are a crowdfunding portal or a stakeholder in the industry, now is the time to get involved and help shape the future of borderless equity crowdfunding.

📌 Join GECA today! 👉 https://thegeca.org/membership-app-form/

Be part of the global alliance working to foster innovation, collaboration, and industry growth.

👉 Follow GECA for the latest insights, partnerships, and global crowdfunding opportunities.

🚀 Let’s build the future of crowdfunding—together!

 

#Crowdfunding #GECA #EquityCrowdfunding #BorderlessInvestment #Blockchain #RegCF #FutureOfFinance

 

by GECA

Maximising ECSPR’s Impact: Key Insights & Strategic Reccommendations | GECA Roundtable (Jan 14, 2025)

Executive Summary

GECA recently hosted a roundtable discussion on Maximising ECSPR’s Impact, focusing on key issues such as SME funding, regulatory convergence, and the future of crowdfunding. Moderated by Andrew Field (GECA), the discussion featured industry experts Janine Donoghue (Green Crowd, Ireland), Nik Makris (Brikbee, Greece), Richard Austwick (BMS Group, UK), Clive Reffell (Crowdsourcing Week, UK), and Konstantin Boyko (Lenderkit, Netherlands).

The conversation centered on leveraging the European Crowdfunding Service Providers Regulation (ECSPR) to bridge SME funding gaps, achieve regulatory convergence, and build investor trust. Experts explored challenges, opportunities, and strategic insights to scale the equity crowdfunding sector, including:

  • Addressing SME funding gaps, particularly in sustainability and innovation.
  • Strengthening investor confidence through transparency and regulatory alignment.
  • Positioning equity crowdfunding as a viable complement to traditional financing.
  • Overcoming market fragmentation and expanding cross-border operations.

This report distills the roundtable’s key discussions into practical strategies for stakeholders, aiming to unlock ECSPR’s full potential and accelerate equity crowdfunding growth across Europe.

Context: The state of play for Equity Crowdfunding in Europe

The European crowdfunding market, despite significant growth, remains underdeveloped in equity funding, accounting for only 6% of total crowdfunding activity. ECSPR, introduced in November 2021, aims to harmonize regulations across member states, creating a unified market for investment- and lending-based crowdfunding. However, slow adoption and persistent regulatory disparities have limited its potential impact.

Key Statistics:
  • €600M in crowdfunding securities raised in 2023 – a testament to the growing relevance of the sector.
  • 65% of total crowdfunding funding through loans, highlighting a reliance on debt-based instruments.
  • 159 authorized crowdfunding platforms across the EU, with significant activity in France, the Netherlands, and Lithuania.

The discussion underscored the need for a coordinated effort to make equity crowdfunding a viable financing solution, particularly for SMEs in sustainability, digitalization, and innovation.

Unlocking ECSPR’s Potential for SME Funding

Bridging the Funding Gap

Participants emphasized the potential of ECSPR to address the €800 billion annual funding gap in the EU for critical sectors. Equity crowdfunding can complement traditional financing methods, but its growth depends on:

  • Investor Education: Many SMEs and potential investors remain unaware of the benefits and mechanisms of equity crowdfunding. Janine Donoghue noted that outreach to financial brokers and advisors could bridge this gap.
  • Targeting Niche Markets: Platforms like Green Crowd (Ireland) have demonstrated the efficacy of niche approaches, (for example, they focus on renewable energy projects). These specialized platforms can attract mission-driven investors and address underserved sectors.
Hybrid Financing Models

Nik Makris proposed some thinking around hybrid instruments blending equity and debt characteristics, such as mezzanine debt or preference shares. These products could offer investors clearer exit strategies, increasing their appeal compared to traditional equity models. Real estate and shipping were highlighted as sectors where such instruments could thrive.

Building Investor Confidence

Transparency and Standardization

Investor trust remains a cornerstone of crowdfunding growth. ECSPR’s provisions for standardized disclosures and risk warnings were debated. While some participants doubted their efficacy, they acknowledged their potential to align investor expectations and reduce information asymmetry.

  • Smart Contracts and Escrow Mechanisms: Clive Reffell highlighted the role of blockchain-based platforms in ensuring staged payments based on performance milestones. Such mechanisms could mitigate investor losses and enhance accountability.
Combating Negative Perceptions

Public skepticism about equity crowdfunding persists, with accusations of inflated valuations and inadequate due diligence. To counter this, platforms must:

  1. Strengthen Due Diligence: Platforms must rigorously vet projects to avoid defaults and fraud.
  2. Launch Awareness Campaigns: Unified marketing efforts by industry communities like GECA could reshape public perceptions and showcase success stories.

Achieving Regulatory Convergence

Challenges of Fragmentation

The roundtable identified regulatory inconsistency across member states as a significant barrier to scaling crowdfunding platforms. While ECSPR provides a framework, local regulators’ varied interpretations and licensing timelines hinder convergence.

  • Case Study: Greece: Nik Makris shared that the 14-month process to obtain a license disrupted business planning. Such delays are unsustainable for smaller platforms and discourage cross-border expansion.
Proposed Solutions
  1. Regulatory Knowledge-Sharing: Konstantin Boyko and others suggested establishing working groups to share best practices and align regulatory interpretations.
  2. Centralized Resources: It was suggested that ESMA could play a greater role in creating shared resources for regulators, reducing disparities in experience and expertise.

The Path to Scalability: Overcoming Market Barriers

Market Fragmentation

Fragmented markets, driven by linguistic, cultural, and economic differences, complicate cross-border operations. Participants advocated for:

  • Localized Partnerships: Platforms should collaborate with local entities to bridge knowledge gaps and access untapped markets.
  • Pooled Resources: Collective marketing and technology initiatives could lower entry barriers for smaller platforms.
Developing a Pan-European Secondary Market

Liquidity remains a critical challenge for equity crowdfunding. A pan-European secondary market could provide investors with exit opportunities, enhancing the sector’s appeal. This initiative would require collaboration between regulators, platforms, and financial institutions.

Strategic Recommendations for Stakeholders

For Platforms:
  • Invest in investor education and transparent communication.
  • Explore innovative financing instruments, such as hybrid models and smart contracts.
  • Focus on niche markets to build competitive advantages.
For Industry Bodies and Policymakers:
  • Conduct pan-European awareness campaigns highlighting crowdfunding’s potential.
  • Facilitate partnerships between platforms to share best practices and resources.
  • Advocate for regulatory clarity and alignment at the EU level.
For Regulators:
  • Streamline licensing processes and reduce approval timelines.
  • Foster regulatory harmonization through structured knowledge-sharing initiatives.
  • Encourage the development of secondary markets to enhance liquidity.

A Unified Vision for Equity Crowdfunding

The GECA roundtable marked a pivotal step in aligning stakeholders around a shared vision for the future of equity crowdfunding. By tackling regulatory fragmentation, investor skepticism, and market barriers, the sector can unlock its full potential as a critical tool for SME funding and economic growth.

GECA and its supporters are uniquely positioned to lead this transformation, leveraging ECSPR to foster a thriving, inclusive, and scalable crowdfunding ecosystem.

Join the Conversation!
If you're passionate about shaping the future of global cross-border crowdfunding, we invite you to become a GECA supporter and connect with industry leaders.

Sign up today:https://thegeca.org/membership-app-form/

by GECA

Globalizing Equity Crowdfunding: Unlocking the Future of Borderless Investments

Equity crowdfunding has emerged as a transformative financing tool, reshaping the entrepreneurial and investment landscapes. For startups, it offers an accessible pathway to secure funding without the traditional constraints of venture capital or bank loans. For investors, it democratises participation, enabling individuals to support early-stage ventures with modest contributions. Despite its promise, the full potential of equity crowdfunding remains untapped due to its fragmented, localised nature.

The globalisation of equity crowdfunding is essential to creating a seamless, borderless investment ecosystem. By enabling cross-border transactions and harmonising regulatory frameworks, this shift can democratise access to capital, spur innovation, and foster global economic growth. This article explores why globalising equity crowdfunding is necessary, its benefits, and the steps required to achieve it.

What Is Equity Crowdfunding?

Equity crowdfunding allows individuals to invest in startups and small businesses in exchange for equity or equity-like returns. Unlike reward-based crowdfunding, where backers receive non-monetary incentives, equity crowdfunding aligns investors with a company’s financial success. It also differs from debt-based crowdfunding, where investors lend money in return for fixed interest payments.

In recent years, equity crowdfunding has gained traction as a viable financing alternative for entrepreneurs. According to Business Research Insights the equity crowdfunding market was valued at approximately USD 1.41 billion in 2023 and is projected to reach USD 4.51 billion by 2032, growing at a compound annual growth rate (CAGR) of 13.8% during the forecast period (Source: Business Research Insights, December 2024). This growth is driven by the increasing awareness of crowdfunding’s potential to democratise capital access, particularly in underserved regions.

The Current State of Equity Crowdfunding

The equity crowdfunding ecosystem has witnessed significant growth, with platforms like Seedrs in the UK, Republic in the US, and Birchal in Australia offering innovative ways to connect investors with startups. However, the landscape remains fragmented due to differing regulatory requirements across regions, complicating cross-border investments.

While some platforms have made strides in enabling global deals, they still face operational challenges in complying with the securities laws of each jurisdiction. For instance:

  • Seedrs and its parent company, Republic, are pioneering the ability for businesses to raise funds simultaneously in the US, UK, and EU. Randal MacDonald, head of Seedrs’ Dublin office, highlighted to BeBeez International that Republic and Seedrs are positioned as the only global provider offering this capability. The first global raise under this model occurred in 2024.
  • Despite these advancements, platforms must still address local regulatory nuances, which often require establishing a presence or partnerships in the target country.

While platforms like Seedrs and Republic have demonstrated operational capacity and innovation, the broader industry is hindered by the lack of harmonised regulatory frameworks. These barriers make it challenging for startups to attract international funding efficiently and for investors to build truly global portfolios. Inconsistent due diligence practices and the absence of interoperability among platforms further exacerbate these challenges, stalling the seamless globalisation of equity crowdfunding.

The Case for Globalising Equity Crowdfunding

  1. Economic Benefits
    Globalizing equity crowdfunding would unlock significant economic value by connecting startups and investors worldwide:
  • Access to Capital: Startups in underfunded regions, particularly in developing economies, could attract international investors, bridging capital gaps.
  • Investor Opportunities: Globalization allows investors to support innovative companies from diverse markets, increasing portfolio diversification and exposure to high-growth sectors.
  • Efficiency: A larger investor pool reduces funding gaps, accelerates fundraising timelines, and enhances capital efficiency.
  1. Technological Advancements
    The rise of blockchain technology and digital platforms enables secure, transparent, and efficient cross-border transactions. For instance:
  • Blockchain ensures tamper-proof records of ownership, increasing trust among investors.
  • AI-driven platforms can streamline due diligence processes, reducing friction in cross-border investments.
  1. Promotion of Innovation
    Globalization fosters innovation by funding startups with unique ideas across diverse cultural and economic contexts. Increased competition drives higher-quality ventures, elevating standards across industries.

      4. Cultural Exchange
        Equity crowdfunding creates opportunities for cross-cultural collaboration. Investors and entrepreneurs can share ideas, fostering mutual understanding and            global innovation. Ventures funded globally also contribute diverse cultural influences to their target markets, enriching the global economy.

Why Globalisation Is Necessary Now

  1. Economic Interdependence
    The global economy is more interconnected than ever, with startups and SMEs driving growth. Industries like renewable energy, fintech, and healthcare are increasingly reliant on international collaboration and funding. Equity crowdfunding can catalyse these sectors by providing seamless access to global capital.
  2. Regulatory Developments
    Recent initiatives, such as the European Crowdfunding Service Provider Regulation (ECSPR), demonstrate the feasibility of harmonizing crowdfunding regulations. These frameworks can serve as a blueprint for global standardisation, enabling smoother cross-border operations.
  3. Demand for Diversification
    Investors increasingly seek to mitigate risk by diversifying across geographies and sectors. Emerging markets, in particular, present lucrative opportunities for high-growth investments. Globalising equity crowdfunding can meet this demand by providing access to a wider range of ventures.

Challenges to Globalising Equity Crowdfunding

  1. Regulatory Barriers
    Divergent securities laws and compliance requirements remain significant hurdles. Startups often face duplicative or conflicting regulations when raising capital internationally, while investors encounter barriers to accessing foreign markets. Standardising these frameworks is critical.
  2. Technological and Operational Hurdles
    Ensuring platform interoperability and data security across jurisdictions is a technical challenge. Additionally, addressing language barriers, currency exchange complexities, and cultural differences requires significant investment in platform development.
  3. Trust and Transparency
    Fraud and governance concerns can deter investors from participating in cross-border equity crowdfunding. Establishing globally accepted ethical standards and robust due diligence practices is essential to building trust.

How Globalisation Would Positively Impact the Industry

  1. Economic Growth and Job Creation
    Startups can scale faster with access to international capital, creating jobs and driving economic development. For instance, globalized crowdfunding could help renewable energy startups expand operations, contributing to the green economy.
  2. Global Standards and Best Practices
    Harmonised regulations improve investor protections, streamline compliance, and reduce friction for startups entering international markets. Standardized practices also foster greater investor confidence.
  3. Broader Investor Participation
    Globalisation enables retail investors to access diverse opportunities traditionally reserved for institutional investors. By expanding the retail investor base, crowdfunding platforms can achieve higher funding volumes and greater market reach.
  4. Cultural and Social Impact
    Equity crowdfunding empowers entrepreneurs from marginalised regions, giving them visibility and funding opportunities. It also encourages global collaboration, enriching perspectives and fostering innovation through diverse experiences.

Strategic Path Forward

  1. Developing a Global Framework
    Intergovernmental organisations like the WTO, UN and IOSCO can play a pivotal role in fostering harmonised policies. The ECSPR offers a model for developing global standards, with lessons applicable to other regions.
  2. Leveraging Technology
    Platforms should adopt blockchain for secure and transparent transactions and AI for fraud detection and enhanced due diligence. These technologies can address operational challenges and improve efficiency.
  3. Building Trust
    To overcome skepticism, platforms must implement rigorous vetting processes and provide investor education. Promoting success stories of globalised crowdfunding campaigns can also build credibility.
  4. Encouraging Collaboration
    Partnerships between platforms, regulators, and stakeholders are essential for developing shared goals and standards. Industry alliances like the Global Equity Crowdfunding Alliance (GECA) can spearhead efforts to create a unified ecosystem.

Conclusion

Globalising equity crowdfunding represents a transformative opportunity to unlock the future of borderless investments. By connecting startups and investors across geographies, it democratises access to capital, fosters innovation, and drives global economic growth. While challenges remain, strategic efforts to harmonise regulations, leverage technology, and build trust can pave the way for a seamless investment ecosystem.

Now is the time for regulators, platforms, and stakeholders to act decisively. Together, we can shape a future where equity crowdfunding transcends borders, empowering entrepreneurs and investors to collaborate on a truly global scale.

Join the movement and become a supporter of the Global Equity Crowdfunding Alliance (GECA). By uniting with industry leaders, you’ll gain access to resources, forums, and opportunities to help shape the future of equity crowdfunding.
👉 Apply to become a supporter here.

by GECA

Navigating the Risks: Insuring Crowdfunding Platforms | GECA Podcast

Navigating the Risks: Insuring Crowdfunding Platforms | GECA Podcast

In this essential episode of The Crowdfund Chronicles, Andy Field sits down with Richard Austwick, Director at BMS Group, to explore the complex world of crowdfunding platform insurance and risk management. As the industry continues its rapid evolution, platform operators face an increasingly sophisticated landscape of risks—from regulatory compliance across multiple jurisdictions to cyber threats and director liability exposures. Richard brings seven years of specialized experience insuring crowdfunding platforms, sharing eye-opening real-world examples including a £4 million director liability claim and a sophisticated cyber fraud that cost one platform half a million pounds. This conversation reveals how these risks are not only insurable but manageable with the right approach and specialist knowledge. Learn about the critical distinction between risks that can be transferred off your balance sheet through insurance versus those that cannot, discover why personal assets of directors are often at stake, and understand how proper coverage can mean the difference between surviving a crisis and catastrophic business failure. Whether you’re operating a single-jurisdiction platform or planning cross-border expansion, this episode provides invaluable insights into protecting your business, understanding regulatory exposures, and working effectively with insurance specialists who understand the unique challenges of the crowdfunding sector.

ALSO AVAILABLE ON

Share this article

  • X
  • black x

Andy Field: Hello everybody. Welcome to the GECA podcast, Crowdfunding Chronicles. Brought to you by the Global Equity Crowdfunding Alliance. I’m your host, Andy Field. Today’s episode is all about understanding the risks associated with running a crowdfunding platform and crucially, whether those risks are insurable.

So as the crowdfunding industry continues to grow and evolve, Platform owners are facing unique challenges, including differing regulations across jurisdictions that can complicate operations. So to help us unpack these issues today, I’m joined by a special guest, Richard Austwick, the original director at BMS group, Richard’s got extensive experience in working with crowdfunding platforms, helping them manage and mitigate their risks through specialized insurance solutions.

So Richard, welcome to the show. It’s fantastic to have you here.

Richard Austwick: Thank you very much. Yeah, really. I’m excited to speak to you.

Andy Field: Brilliant. Okay, so should we start with the basics? So crowdfunding platforms have become a vital part of the financial ecosystem. We all know that. But [00:01:00] what are some of the key risks that platform owners need to be aware of?

Richard Austwick: Yeah, so good question. So I think ultimately it kind of depends on the individual platform and where they’re domiciled. But I think there are definitely some broad, exposures that affect all types of businesses, all types of platforms. So you can have some of your trading exposures. So, you’ve got your, your investors, you’ve got the potential for fraud to happen, whether that’s the employees or third party manipulations.

you’ve got from the investor side, the actual failure of investors, a failure of the investment, sorry. as an exposure, then you’ve got other risk exposures. If you look at your sort of financial exposures, so running, running a platform, you know, running a business, running a P and L managing that cashflow, trading conditions, pressures from shareholders, pressures from any, any clients that you deal with.

So that, that’s another type. And then the other one, which I guess is the, it was a rapidly, developing area is the regulatory exposure. So how [00:02:00] you are dealing with the regulator, The communication with the regulator, with the, with the regulators, you know, how you’re tracking that it’s, you know, the, the really key point is trying to marry growing your platform whilst also ensuring that the compliance and the internal controls and procedures are really sort of, staying in line.

I think that’s a, that’s a real balancing act for platforms.

Andy Field: Yeah. So that’s, I mean, I to sum that up, then I suppose that, running and owning a platform comes with all the risks that any other business would potentially have, plus some really nuanced ones, you know, associated with the actual fact that it’s a, it’s a crowdfunding platform.

So, so given that wide range of risks that you’ve talked about there, how, just how insurable are those risks for, for platform operators? Can, can they actually adequately protect themselves through insurance?

Richard Austwick: Yeah, it’s a good question. And it’s always something to start off with when you speak to clients is actually just having a clear conversation at the start and just say, okay, you’ve got your balance sheet of risks.

[00:03:00] And what are those, what are those risks you’re most concerned about? And what can be transferred off your balance sheet via insurance and what can’t? And I think once you start at that point, and then move on from there, that’s a better position to start from. So if we, if we take that regulatory exposure.

So if you’re having to deal with a regulator, so you can get cover for, you know, if, if the regulator starts to investigate the platform in terms of procedures, it’s, AML, KYC provisions, so you can get access to, legal costs who can help represent you if the regulator comes in and starts a formal investigation.

Often those situations people won’t really know they might have lawyers that they deal with but are they specialists in this area? So you want to get access to someone who knows how your local regulator acts, the kind of information they want, how they want to be presented, so that that’s a really key point.

and then , other things we just talked about, you know, the, the other risk exposures on the balance sheet for these crowdfunding platforms. So you’ve got that [00:04:00] financial element. So the actual personal assets of the directors themselves.

So those guys, those individuals who are running the business, it’s their own personal assets liable if things go wrong. So often you can transfer that off from a director’s and officer’s liability policy, which, is really important. And then if we go back to the original point on trading exposures, so the investors, the performance of the investments themselves, you know, if the, if the investments fail and investors lose money, they start, they want, essentially they want their money back.

And so they try to seek recourse. And so you can get the, under the professional indemnity section of a policy, you can get that protection. If you start getting investors start to make complaints against you. And particularly if they feel that. You’ve missed something. You’ve, you’ve, you’ve, you’ve missed something in your due diligence.

You didn’t make something as clear, as clear as possible. But we often find that and just on that, you know, the, the modern world in which we work in, you know, that the rapid escalations of investors [00:05:00] sort of working together, you know, that, that, that happens quite frequently and it’s sort , the other side of technology, you know, all the positive sides, but actually it can come full circle when you’ve got investors actually on WhatsApp groups, Facebook groups.

Google ads, you know, they’re, they start to appear above you as the platform and your own website. So they’re all, they, all these risk exposures can be transferred, transferred off our insurance.

Andy Field: Wow. And then just thinking out loud, really, I think you’ve covered kind of most of the things that I would immediately think of would be an exposure.

But what about things like, reputational risks? So, so for example, if, a story hit the news and obviously you needed to hire some, some PR people to mitigate that, is that kind of thing, can that kind of thing be covered? Yeah.

Richard Austwick: Yeah. So, yeah, again, so always good just to start from the base layer and then work up from that work from there.

So these policies. They’re, they are a, they’re a shield, not a sword. So they are to protect the company and the directors. They don’t allow you to go after third parties, but they [00:06:00] allow you to get defense costs. So particularly, for example, if your platform is sort of hacked into by, an erroneous third party, and all your systems are down, all your investors can’t, buy or sell or any of their investments, then there’s that real potential for some PR damage.

So under, for example, cyber insurance policies, you get access to PR costs. So if you’ve got to go and tell key third party suppliers, whether they’re investors, but something’s happened, you want to do it on your terms by doing on your terms, you help mitigate something potentially larger happening.

Andy Field: Yeah, that, that makes sense.

well, so, so we touched on earlier, platforms potentially operate, operating across multiple jurisdictions. It’s one of the things that GECA is obviously advocating for. That is our sort of our sole focus is to make, equity crowdfunding truly borderless. So how do the varying regulations across different countries or, or even regions actually affect the risks that platform owners face?

What, what do they need to be [00:07:00] mindful of in that respect?

Richard Austwick: It’s a good question and it’s something that is, you are seeing, like with most things there is a lot of development. So you are seeing a lot of regulators, talk to each other. You know, there is a lot more sort of on a wider basis, a lot more conferences where people are sharing best practices, best experiences, which ultimately is probably a positive thing.

So whether you are UK based or whether you are Europe, you’re, you are based in Europe or America, you know, the way technology works, you know, you can have meetings virtually so. There’s a much better share of information, from that, from that sort of side. I think the key with all these things is the local knowledge.

So if you’re setting up in a new territory or setting up in your own territory, it’s understanding that local, having that local understanding. So, you know, whether that’s from a legal point of view, from a risk point of view, from a tax point of view, just really getting that sort of clarity early doors.

So that , when you open up a new territory, you guys know, You know what you’re going to be facing and dealing [00:08:00] with early doors rather than further down the line and being on the back foot

Andy Field: from the offset. Yeah, that absolutely makes sense. So yeah, I mean, that’s a really good point. So so to give everybody listening a clearer picture of some of the things that we’ve talked about and some of the actual that can happen.

Could you have you got any examples of claims that you’ve seen from from crowdfunding platforms or anybody in the crowdfunding industry, actually, and and more importantly, probably how did insurance help in those cases in those examples?

Richard Austwick: Yeah, sure. Yeah, I know. Yeah, they are. They tend to be more interesting.

I think people can relate. I’ll talk about some examples where I think people can relate to them more. So we already are speaking to a lawyer last week and we were talking about this and they were like, Oh, that’s so interesting. You know, that’s kind of, that’s what I’m interested in some of that. So yeah, absolutely.

So I think, you know, You know, we’ve, we’ve been operating in the crowdfunding space for myself about seven years. So we’ve got some pretty good data and that helped us launch the European product because we had a lot of proprietary data on claims to really present to insurance. And just our comments [00:09:00] to claims example in a minute, but one insurer actually said when we approached them said, Oh, maybe we’ve missed, misinterpreted crowdfunding as a sector because we thought it was maybe higher risk than it was.

So once you present that data, you know, and that was really, you know, good point, you know, have that data and to be able to, to make progress. So, yeah, the first one I’d probably talk about is, is related to the directors themselves. So this is directors running companies. So running the actual platform crowdfunding platform.

And We had a client that was, had accusations from one of its shareholders, but the directors weren’t running the business. They weren’t running the business in the interest of the business, they were running it in their own best interest. So they weren’t finding their fiduciary duty.

A lot of that is sort of allegations. And so there’s allegations need to be defended against. and the matter actually was first discussed back in 2019. Like with this particular case, the time it takes [00:10:00] to reach a conclusion was a long time. So actually took five years to conclude because you had legal lawyers on both sides battling You know, it was, yeah, it was quite a lot.

Andy Field: Which instantly says to me, five years worth of legal costs. Wow.

Richard Austwick: Yeah, yeah, exactly. And so the the total end amount that insurers paid out under their policy was just over four million pounds. and yeah, and that was And, and the benefit of that was that the shareholders share at the start, the founders basically said, okay, we’ll agree to transfer our shares over to the shareholders and we’ll kind of call it, we’ll draw a line in the sand.

But actually the shareholders in this situation went beyond that and went after the personal assets of directors. So if you imagine you’re running this, you’re running a crowdfunding platform, and you’re, you’re faced with a situation, and actually it’s not just your equity in the platform itself, it’s your own assets, you know, any property you’ve got, car, et cetera, stuff like that.

Andy Field: So I think, I think there’s going to be people out there who, who probably aren’t aware of the fact that those personal assets, you know, are at risk in this kind of [00:11:00] situation and need to be protected.

Richard Austwick: Yeah, exactly. And so this will depend on,territory to territory in terms of the local sort of environment from a legal perspective.

But yeah, it’s something that I think people probably aren’t aware of, you know, and, but it’s, you know, it’s really important just to transfer that risk off the balance sheet. you know, covering your personal assets and get that, get transfered over. So yeah, yeah. 4 million in total, you know, it’s a significant amount.

And, and the time length, the other, the other claims much shorter, and slightly more wide, I guess, more in the more modern environment. So we had one platform where, someone was able to get into their systems and we’re basically watching how the CEO and the CFO were talking. So watching how they spoke to each other, the mannerisms they used, you know, the type of language that they were, they were using to each other and they didn’t do anything.

They just sat on it for two or three months, watched, watched and learned. And then eventually they sent an email, to the CFO saying the [00:12:00] CEO, well, the CEO sent an email to the CFO saying, Oh, the. The bank account details, of, one of the companies looking to raise money has changed. And what happened was two transactions totaling about half a million were transferred into the wrong bank account details into these into the fraudsters details, hugely stressful time.

We were able to utilize the insurance policy to, you know, cover that loss. So the half a million loss and crucially do it quickly and early because in that situation, if it had rumbled on and on. You would have had investors start to really get concerned about what’s going on. And then you’ve got all their legal costs that you might have to factor into in terms of settlement.

So dealing with early doors really sort of helped actually keep the total loss at a lower level. And then initially from that, they had regulatory obligations to notify their local regulator that something’s happened. And so there might well be something to follow from that. [00:13:00] yeah, further costs from that side.

Andy Field: I mean, yeah, eye opening and eye watering examples really. And, and I guess, yeah, they really do show how critical insurance can be in protecting platforms from, look, let’s be honest, that could potentially be catastrophic financial losses in that.

Richard Austwick: Yeah. And they were, They were in the startup phase, you know, they were probably, probably year two.

So, you know, huge, well, would affect any, any business, but yeah. Particularly those at that size.

Andy Field: Oh, goodness me. So, you’ve, you’ve touched on this earlier, but based on your experience, how should crowdfunding platforms approach risk management when they are operating in those multiple regions?

Is there anything sort of specifically, I mean, obviously, other than the fact that you’ve said that, you know, get the local knowledge early, that, That makes sense. Is there anything else you could, you could, um, pick up on that?

Richard Austwick: I think it’s probably a case of when they’re planning and mapping out their roadmap.

So whatever stage they’re at, whether the, you know, year one or whether they’re in year three of [00:14:00] a five year plan, it’s trying to then integrate that into what is the, what’s the proposition for our insurance. And that probably seems quite low down the list, but if you’re looking to set up a new territories, you want to make sure that your insurance policy.

And your insurer is comfortable with that. And they’re able to provide cover as you go. What you don’t want to be doing is spending all this time setting up a new territory and then finding out, Oh, actually my insurer actually can’t, can’t cover me for activity in a certain territory. So really aligning that strategy as early as possible is really important because then that just means you’ve got peace of mind of knowing, Oh, I’m with this insurer.

They know that we’ve got plans to expand into X, Y, and Z. They’re comfortable with that. And it just, it just, it’s something that you’re probably going to be pretty stressed and you know, you’re probably pretty busy of your time and it’s something you can just tick off and focus on your, on your other.

Andy Field: Yeah, and probably one of those things that you, you know, it’s very easy to almost forget about the need to do it. To do that, you know, so yeah,

Richard Austwick: I don’t, we don’t take it personally, [00:15:00] you know, often insurance probably isn’t probably, you know, in the top five or top 10 things, but it is something that people need to consider.

And yeah, so .Yeah, getting that, discussion in early doors is really, really important.

Andy Field: Brilliant. So that’s great. And, and look, that’s been really, really useful and really, really interesting. We’ve, we’re running out of time. Before we wrap up on this, have you got any practical tips that you can offer platform owners that will maybe help them better manage their risk generally and ensure that they’re adequately covered?

I mean, we’ve, we’ve talked about so many different scenarios here today, so it’s going to be difficult for you to go through those individually, but just general sort of tips to help them better manage their risks. That’ll be great.

Richard Austwick: Yeah, sure. So I think the first one kind of linked to my previous point is just invest the time early doors to make sure you’re speaking to specialists who have been on the journey of other platforms.

They know they know what’s going to go on, because it just means that you can sort of get this done and move on to [00:16:00] your other points on the agenda. And generally speaking, you know, insurers work on their generally conservative nature. So if they don’t have certain information, they will always act on the side of caution.

Yeah. So we always say get on the front foot. So we do quite a big, due diligence exercise before we engage with insurers, because we know what insurers, the information they want. And if you get on the front foot and you present it in the right way, then You give insurers the comfort to really put their best foot forward.

And that’s what you want. You want them to say, actually, they’ve, they provide this information on XY. Because of that, I can, I can actually offer a lower premium. So spending that time to start with specialists just saves you a lot of time and money in the long run, from that sort of side. And, and as I said, the very point, very, very first point is.

I guess having a conversation with, with who your insurance broker is actually, you know, what risks are actually in my transferring off the balance sheet of the business for insurance? And what actually am I not? Because I think once you start from that position, you’re, you [00:17:00] have it, you have better clarity in terms of what you are covering and what you’re not.

Cause I’m sure there’s people who get frustrated and think, you know, am I actually being insured for, I want to be insured or, or, you know, likewise, and, you know, in terms of exclusions or restrictions and coverage.

Andy Field: Yeah, yeah, I mean, that makes perfect sense. Listen, Richard, thank you so much for sharing those insights.

It’s, it’s obviously clear that when running a crowdfunding platform that there are significant risks, as there are with most businesses, actually. But the good news is that the risks are insurable with the right approach. And actually, as you mentioned there, if people take the time to actually do that initial, you know, help your broker, the initial fact find, if you like, can sort of reap rewards in terms of what you’re covered for.

And then obviously the premiums obviously can be can be, can be looked at as well, in, you know, in, with more information. So I guess it’s all about understanding the specific challenges of the industry and being proactive in managing them. So yeah, that’s fantastic. I mean, for our listeners, if you’re involved in, in operating or investing in crowdfunding platforms, this conversation should have [00:18:00] hopefully highlighted just how important it is to have a solid risk management strategy.

Your insurance broker can obviously help with that. Insurance can play a massive part in ensuring that platforms can survive, actually, when things go wrong. So, Richard, I just want to say thanks again for joining us today. I’m sure we’ll talk again, in the future. And thank you again for our listeners for tuning in to Crowdfunding Chronicles, the GECA podcast.

Please stay tuned. We’ve got more episodes on the way soon where we’ll explore the opportunities and challenges involved in shaping the crowdfunding, world. So, look out for the next episode soon. And bye bye for now. Thanks again, Richard.

Richard Austwick: Thanks, Andy. Cheers.

by GECA

The Global Equity Crowdfunding Alliance: Reflecting on a Milestone Inaugural Year.

As 2024 comes to a close, we find ourselves at an incredible juncture in our journey with the Global Equity Crowdfunding Alliance (GECA). What started in May as a vision to transform the equity crowdfunding industry has quickly grown into a thriving global initiative, uniting equity crowdfunding, stakeholders across borders.

Our story began with a simple yet ambitious realisation: The true potential of equity crowdfunding, is limited by national boundaries. We saw an opportunity to build a collaborative ecosystem—one that empowers entrepreneurs with greater access to capital and enables investors to participate in deals that resonate, regardless of geography. This vision isn’t just about funding; it’s about unlocking untapped potential to create a more equitable and interconnected future.

In our first six months, we’ve made extraordinary progress. GECA now has the support of 40 organizations spanning the Americas, Europe, the UK, and Asia. This level of support underscores the industry’s readiness to embrace a shared mission for borderless crowdfunding and cross-border investment. The enthusiasm from industry leaders and stakeholders has been phenomenal—it’s clear that the need for this alliance is real and urgent.

Milestones of 2024

  1. Steering Committee Leadership:
    Our independent steering committee has been instrumental in shaping our path forward. With diverse expertise and commitment to our mission, these fantastic industry leaders from across the globe have guided GECA with passion and insight. I encourage everyone to learn more about these extraordinary individuals here.
  2. CrowdCon 2024:
    In September, GECA proudly participated in CrowdCon 2024 in Brussels, co-hosted by Eurocrowd and Fintics. The event was a powerful reminder of the value of collaboration, as industry leaders tackled the complexities of regulatory alignment and digital finance. GECA used this platform to advance critical conversations, demonstrating our role as a unifying force in the industry.
  3. Crowdfunding Chronicles Podcast:
    This year also saw the launch of the Crowdfunding Chronicles podcast, where thought leaders shared groundbreaking ideas and expertise. These conversations have ignited inspiration within the global community, and we’re thrilled to announce new episodes launching early in 2025. You can listen to the podcast series here.

Looking Ahead: A Collaborative Vision for Equity Crowdfunding

The future of equity crowdfunding is bright and 2025 has the potential to be a transformational year. We will begin our research program in the new year and our supporters will be asked to play a key part by taking part in a survey that is designed to prioritise our focus on the issues which matter the most. As we kick off the new year, we’ll launch a series of roundtable discussions aimed at gathering the expert views and opinions of our supporters. The insights gained from these discussions will be instrumental in strengthening our research program, as we share them with our members and policymakers to drive meaningful impact.

The road ahead may be challenging, but the opportunities are boundless. With over 2 billion people online and connectivity expanding at an extraordinary pace, we firmly believe that we stand at the cusp of a new era. By leveraging the expertise and guidance of our supporters and building a transparent, global ecosystem, GECA will lead the charge in helping create an equity crowdfunding future defined by innovation, shared success, and global impact.

Join Us on This Journey

As we move forward, we’re focused on growing our alliance and gaining critical mass. Supporting GECA offers unparalleled access to industry insights, exclusive events, and the chance to help shape the future of crowdfunding. This is your opportunity to be part of a movement that will transform the industry.

Together, we can make the difference needed to take equity crowdfunding to the next level. The market is consolidating, and now is the time to act—to build confidence, embrace innovation, and drive a revolution that benefits everyone.

Happy Holidays and a Prosperous New Year!

To every member, supporter, and advocate: thank you for believing in GECA’s vision. Your dedication fuels our work and inspires us to reach for even greater heights. On behalf of our entire community, I wish you a joyous holiday season and an extraordinary 2025.

Warm regards,
Andy Field
Executive Lead, Steering Committee
Global Equity Crowdfunding Alliance

 

by GECA

Evolving with Integrity: Reflecting on Crowdfunding Regulation in the UK and UK Crowdfunding's Path Forward

The landscape of UK crowdfunding is at a critical juncture, highlighted by national discussions on the challenges posed by current regulations. A recent article by James Hurley in The Times underscores the UK Crowdfunding Association’s (UKCFA) concerns about potentially stifling regulations enforced by the Financial Conduct Authority (FCA). We thought we’d take a look at these issues and as we fully support a regulatory environment that fosters innovation while ensuring robust investor protection. This aligns with our mission to support sustainable, global growth in equity crowdfunding.


In his article, James Hurley brings attention to a letter from the UKCFA to the Economic Secretary to the Treasury, which requests an independent review of the FCA’s impact on business finance and investment. Highlighted by the UKCFA and discussed by Hurley, there is a pressing concern that over-regulation could be detrimental to the UK economy, potentially resulting in up to £16 billion in lost investment opportunities. This perspective sets the stage for a broader discussion on finding a balance between investor protection and industry growth.

GECA’s Role in Shaping Crowdfunding:
As an advocate for borderless equity crowdfunding, GECA plays a pivotal role in this discourse. Our mission is not only to promote the efficiency and scalability of crowdfunding platforms globally but also to advocate that these platforms operate in a regulatory environment that is conducive to innovation and broad investor participation. GECA’s efforts are geared towards harmonizing regulations across jurisdictions to reduce barriers and enable a truly global investment landscape.


Reflecting on the concerns detailed in Hurley’s Times article, it is crucial for the crowdfunding industry to engage in constructive critique and dialogue about existing regulations. The FCA’s current measures, while well-intentioned for consumer protection, may inadvertently hinder the growth of a vibrant crowdfunding ecosystem by imposing rigid constraints that could deter new investors and stifle entrepreneurial ventures.

The Advantages of Reexamining Regulation:
Revisiting these regulations is not merely a bureaucratic exercise; it has tangible benefits for all stakeholders:

  • For Entrepreneurs: Streamlined regulations can lower the barriers to entry, allowing more innovative startups to access capital.
  • For Investors: A balanced regulatory approach increases the market's attractiveness through enhanced safety and potentially higher returns.
  • For the Economy: More successful startups and higher investment activity contribute to economic growth and job creation.

Recommendations for next steps:

  1. Independent Review and Analysis: In line with the UKCFA’s suggestion reported by Hurley, an independent review could provide empirical evidence necessary for adjusting regulations effectively to support economic growth without compromising investor safety.
  2. Proportionate Regulations: Such a review should advocate for proportionate regulations that protect investors but are also pragmatic enough to foster innovation and market competitiveness.
  3. Stakeholder Engagement: GECA champions ongoing dialogue between crowdfunding platforms and regulators like the FCA. This approach ensures that the regulatory framework adapts to the realities of modern fundraising and investment practices.
  4. Promoting Transparency and Education: Enhancing the transparency of these regulatory processes and increasing educational outreach can mitigate risks more effectively than restrictive measures alone.


We encourage all stakeholders within the crowdfunding ecosystem to participate in this pivotal conversation about our industry’s future. Your insights are invaluable in shaping a regulatory landscape that nurtures growth while safeguarding investors. GECA provide it’s supporters with opoprtunities to connect and engage with each other about many issues affecting our industry. Supporting us costs nothing and you can apply to become a supporter here

 

by GECA

The Impact of ECSPR on European Crowdfunding with Oliver Gajda | GECA Podcast

The Impact of ECSPR on European Crowdfunding with Oliver Gajda | GECA Podcast

In this landmark episode of Crowdfunding Chronicles, we explore one of the most significant regulatory achievements in crowdfunding history with Oliver Gajda, Executive Director of Eurocrowd. The European Crowdfunding Service Providers Regulation (ECSPR) represents a groundbreaking shift from fragmented national rules to a unified framework that enables true cross-border crowdfunding across all EU member states. Oliver takes us behind the scenes of this remarkable six-year advocacy journey, revealing how a small NGO representing an emerging market successfully influenced European policy through persistent research, strategic partnerships, and unwavering commitment to the vision of borderless crowdfunding. From the initial white paper in 2012 through the final implementation in 2023, this episode uncovers the challenges, milestones, and unexpected support that made ECSPR possible. Learn how this regulation has already begun transforming the landscape for entrepreneurs seeking funding, investors looking for opportunities, and platforms expanding their reach. Oliver also shares insights on the practical implications for stakeholders, the professionalization requirements for platforms, and whether this European model could serve as a blueprint for other regions worldwide. This is essential listening for anyone seeking to understand how regulatory advocacy works, the future of European fintech, and the potential for truly global crowdfunding frameworks.

ALSO AVAILABLE ON

Share this article

  • X
  • black x

Andy Field: Hello, everybody. Welcome to the GECA podcast brought to you by the Global Equity Crowdfunding Alliance. We’ve termed the series the Crowdfunding Chronicles, and I’m your host, Andy Field. I lead the GECA steering committee. And this podcast series is your go to source for insights into the world of crowdfunding, from policy changes to global trends and everything in between.

Today’s episode is particularly interesting. As we dive into the story behind a significant milestone for crowdfunding in Europe, and that’s the introduction of the European Crowdfunding Service Providers Regulation or ECSPR. This regulatory framework has essentially created a unified set of rules for crowdfunding platforms across Europe and our guest, our special guest today, has been instrumental [00:01:00] in making this happen.

So joining me is Oliver Gajda. Oliver is the executive director of Eurocrowd, and Eurocrowd played a key role in the ECSPR. We’re going to explore how Eurocrowd influenced this historic regulation, the process that led to its development, and what it means not only for Europe, but potentially for the global crowdfunding ecosystem.

And Oliver, welcome to the podcast. It’s a pleasure to have you here.

Oliver Gajda: Andrew, thank you very much. I hope I can fit the shoes that you, , laid out in your introduction.

Andy Field: It’s always a good introduction.

Andy Field: Okay, so yeah, so let’s, let’s jump right in. So for many in our audience, ECSPR represents a turning point for the company.

for the crowdfunding sector in Europe. , so to start with, can you share how Eurocrowd became involved in the process of developing what is essentially a unified regulatory framework? What was the starting point?

Oliver Gajda: Yeah, it’s actually a really good question because, , I don’t think there’s necessarily a starting point.

You know, when we started, that was in back in [00:02:00] 2011, 12, the first ideas of somehow creating a network and didn’t quite know which way to go. And at some point we put out a white paper that basically came out of, you know, different interactions, different stakeholders, and then crowdsourced with, I think, more than 50 people providing input.

That, at that time, you know, we had the financial crisis 2008 2009, , basically address the key issues that the economy was facing, you know, job creation, innovation, funding of small companies, at a time where policy was, let’s say a bit, a little bit disappointed about the way banking and another financial instruments had worked.

in and after the financial crisis. And so there was some some hope for innovation, I think, on their level. And that just started a discussion, right? So there was no real interest in creating a law at the point. But we were able to kickstart this discussion, [00:03:00] following on some other kind of general policy discussions on the idea of climating SME’s at the time. And we kept on it, we had some members that were very active at the time that had started into this market with the idea of being pan European rather than French or German or whatever.

And so that, that had a lot in, in basically creating drive and over from 2012 on over the next. for years, repeatedly putting forward small studies, data, engaging with individual discussions with policymakers in Brussels to keep this alive. And at the same time, we were very lucky that we had an outgoing commission that, you know, within the last year of their, them being in, in office, they wanted to do something innovative and quick results.

So we were quite interesting, at least to be looked at. And so crowdfunding became one of the first kind of [00:04:00] aspects of what we would now call the broader fintech area that actually achieved in the political discussion and crowdfunding in Europe.

Andy Field: Wow. So, yeah, I mean, so, I mean, that’s fascinating. Could, can you walk us through the process of getting from those sort of initial ideas to the actual legislation coming into force?

I mean, how long has it taken? I think we’ve got a rough idea from the dates you’ve mentioned, and what were some of the key steps that Eurocrowd took along the way to make this happen?

Oliver Gajda: Yeah, I, I mean, , it’s really good. I don’t know, of course, all the details either, but I have a, an idea. And so from, from our end, it was just really, The interest of a small number of crowdfunding platforms to operate Pan European.

And we, we drift this drove this idea home, but you know, we have the experience from venture capital market, which is nationally regulated under European directive. You always have the shortcomings of, you know, company law and tax law. You know, [00:05:00] investment funds often are, you know, national structures that like to operate in their languages.

And so here we had the digital aspect, the possibility to keep money flowing through, you know, an online service. So this was really one of our arguments. And that was one thing that the commission liked as well. But initially the market wasn’t big enough. So for us, that meant really nonstop studies. We did.

together with a number of law firms in partnership with Osborne Clark at the time, three times an analysis of all EU regulatory frameworks regarding crowdfunding. , and we, we shared this free of charge to policymakers. So this, this was a really good discussion point for them. , these were huge documents.

we did market studies. We, shared the data. And so we, had a number of people in different directed journals at the commission that were interested in crowdfunding that, that thought the idea was good, [00:06:00] but low level policymakers, mostly, you know, the initial push from the commission came from the top level.

When the outgoing commission left back then, famously, Michel Barnier, who then later negotiated Brexit, was in charge of the financial market and created a big conference in Brussels in 2013, which now out of nowhere on an industry that didn’t really existed because that was something that potentially could change how, you know, small companies are being financed.

So with this kind of in mind, we had a lot of policy level people in the European Commission that worked on this, even though the top level in the commission within the next commission had no interest in crowdfunding. that, that happens as well. So you could say that the big movement stored for a long time, but we were able to feed information into the lower levels.

And , with Brexit, we had a change in certain, high level positions within the [00:07:00] commission and afterwards found a much more open commission to this topic, which then had identified by that time through the information they gathered and studies they received from us and other people, had identified that.

What crowdfunding is nothing really particularly new, right, other than you collect money from individuals and distribute it to the internet, that the cross border issue was really a hurdle that could be addressed within crowdfunding because it was a digital service. So it was not about whether the platform is located.

And that is what the commission used to draft an idea for a new law. And so they asked us to do a study to deliver on that. aspect, especially specifically on operational and legal challenges, which we did again, together with some partners, provide to the commission on that basis, they were able to argue for the need for a new directive or law.

[00:08:00] Yeah. at the beginning, that was something they would, would still decide. And that was put forward. I mean, they decided 2017. So five years after we published our first white paper. And then published as a proposal in 2018. So for us, this is a five to six year journey of not knowing if something would come out of it, repeatedly working, persevering, you know, relying on members to share knowledge and help us to finance ourselves.

Yes.

Andy Field: Wow. I mean, a monumental effort. I think it could be said any, any particular milestones in that time period or challenges along the way that, that particularly stood out to you?

Oliver Gajda: Yeah, I think really, I mean a monumental effort at it was, you know, it was fun at the time. It was also challenging to sustain as an organization.

but as a small NGO representing a market that was at that time. not [00:09:00] relevant. It was quite interesting to see that we had a lot of support from the established financial market players. So, so the associations for venture capital, private equity, banking, we’re actually happy to discuss and exchange ideas.

And that was a really fruitful time and be, you know, engaged in this, was very important for us to, to have them buy in and, and their expertise as well. So that I think, helped us to keep going for a long time. and on the other side, it’s, I think it’s maybe underestimated in this, these whole discussions, but the low level policy.

officers at the commission that worked on the case basically kept believing that this was interesting. we would have given up if we wouldn’t have had these people within the commission. at the time where we had the change of commissioner and the topic was moved from the [00:10:00] kind of basically the main agenda and fintech was rolled into it became far more important.

Soon we had crypto coming and you know, all areas that to skate much faster than crowdfunding. Sure. And we would never have had any, any success if we wouldn’t have had the people in the commission that would have sought the connections with us, would have worked with us and, and, you know, encouraged us basically to continue.

Continue. So I think that that’s the, these two things, the support from basically, areas that we didn’t really expect support from at the time really, really helped us to keep going for the first six years. Yes.

Andy Field: Yeah, really stand out positives, actually. thank you for sharing that. So, so, ECSPR has now been in place for some time.

What do you think has been the sort of the looking, looking back over the last couple of years? What’s been the sort of the immediate implications for crowdfunding in Europe? And then maybe looking beyond Europe. Do you feel that it could serve as a model for other regions globally? [00:11:00]

Oliver Gajda: So good question. The first question is, so what has changed?

you know, what, what we had before is what you basically have probably everywhere else in the world, you have a regulatory framework that is written or not written for crowdfunding or partly written for crowdfunding in every member state in the European Union or in other, in the other country. And, But ECSPR has brought to this is that it largely harmonizes the way crowdfunding platforms operate.

Andy Field: Yeah,

Oliver Gajda: it doesn’t harmonize tax law or company law and so on. But of course, you know, how does a platform operate? How’s the supervision working? And it even carries the notion that a platform is you know, removed from national border. So it doesn’t matter where you are located. That is where your oversight happening as a platform.

And you can operate across Europe without interference from any other regulator, [00:12:00] which is, it’s really quite unusual. It’s I think one of the, if not the only financial service that has this kind of freedom. In the regulation. So this is a huge, huge step forward. What I think we may be overestimated was the willingness and the ability of platforms to take advantage of that.

Andy Field: Right.

Oliver Gajda: So what I mean is that most crowdfunding platforms in the, the 10 years before this law was basically published and came into effect, had established national presence, national market, national expertise. And we’re quite happy operating in the markets. And so for them now to move to a new regulatory regime that is definitely more costly, partly more rigorous.

So you need to have more compliance and feed without necessarily wanting to change the business model that I think has been a quite a big challenge [00:13:00] for many of them, but we need to see. on the other hand, and that’s what we’re still waiting for. It creates opportunities for every new player, downscaling from other financial services.

And I think that is what we are going to see more and more over the next few years. Players that want to exploit the pan European opportunities and maybe bring different professional backgrounds into the market. And that will create competition and more scale and more, more transactions.

Andy Field: Yeah. Yeah. That, that makes perfect sense.

Do, and, and just to, to that, the second point, do, do you think, I realize it’s personal opinion, but do you think that looking beyond Europe, you know, this model could, you know, this could serve as a model for, for other regions?

Oliver Gajda: True. , so at the time when it was negotiated between the European Commission, the parliament and the council, was the time when we also had Brexit happening.

Sure. , and [00:14:00] therefore the rule setting was basically a little bit protective. So we, we don’t have this third country regime where, you know, countries that are friendly with Europe can also apply this. And I believe, for a platform that wants to operate in Europe, it’s easily enough to come here, but it’s still, you know, an investment and it’s time and effort.

for other countries to replicate the law. I don’t know if it makes sense, because the framework here is really on the cross border activities. But if you scale it down and say, okay, you know, we look at the supervisory way and, you know, what the requirements for platforms, I think that that indeed could be something that, you know, can be used.

We were involved in, in some studies for non EU countries where they actually looked at exactly this and where, [00:15:00] you know, from the regulatory side, there wasn’t that much difference in how they wanted to approach it anyway. So this, this could have been used as a blueprint. It hasn’t in that case in hindsight.

So I think that that for sure is something that will happen anyway, if the market here in Europe skates a bit more. And I think this is where we are right now waiting for platforms to really make use of it and to become significantly bigger so that they can be showcased as an example abroad. And then, you know, the positive aspects of that will spill over for now, I don’t think that is going to happen.

I mean, not, not in the short term. Certainly not in the short term,

Andy Field: yeah, yeah. Okay, yeah, that, that makes perfect sense, thank you. , so for any of our listeners who may be entrepreneurs or investors, what do you think this has meant for them? How will the, well, how has the regulation, how potentially will it change the landscape for people who are looking to raise funds or invest in crowdfunding [00:16:00] campaigns?

Oliver Gajda: now this is my personal opinion. You have different, had different regimes and, you know you may have actually felt that they were better than the new one. Yeah. That, that can, can personally be the case. what you have here now is as, both as an investor or as a, an SME that looks funding is that you’re no longer restricted on your national market.

Yeah. So you can. invest across Europe on any platform. Okay. That’s language. You may have to, you know, you know, refrain from investing through platforms that don’t offer a language. You, understand that you speak, but in theory you can, and there is quite a few options already that, you know, you can feel happy with.

the same goes for, for any SME. , if, if you find that in, in your, you know, European member state, there is no crowdfunding platform or none that you do trust or want to work with. it’s possible to [00:17:00] go abroad and find a platform as well. So that is incredibly positive. what has to come with that is of course, that the platforms that now have basically since November last year, they are forced to apply the new rules.

and many have waited until the last few months to make the transition. What is really missing is that they professionally apply the new rules. There’s, of course, some time where, you know, also the regulators need to get behind it and platforms need to get used to it. But in one or two years, I think the prudential rules and the transparency rules will be fully applied and platforms will be Comparable across member states and so for an investor or for an SME looking funding, you should then be able to expect the same level of, you know, disclosure on platforms, the same level of clarity where you find information and what type of information.

And I think that will make it, much, much better. [00:18:00] But even without that, the security that you should feel as an investor or as a company to raise funding and knowing that your partners are supervised by a financial service authority, that they are, you know, required to have certain credential safeguards in place, including insurance and so on, is a huge step from every national set of rules that we had before.

And so that alone should basically give an impetus. To, be positive and, and be more active on the market. , and it should also for platforms be, you know, a marketing label. But I know from, from practice of speaking to platforms that it becomes. complicated to explain this to investors or to SMEs because they never cared about regulation, right?

They, they didn’t know the law before. They don’t know there’s a new law. They, they don’t really dive into this. So there’s a lot of I think, educational efforts necessary in the next one to two years for [00:19:00] platforms to really take advantage of that.

Andy Field: Yeah. Yeah. Yeah. Well, that’s, I mean, it’s really encouraging to hear from a, from an investor and from a business who’s looking to, to, you know, to gain investment that I think that’s really encouraging to hear.

So thank you for that. before we wrap up, we’re nearly at the, we’re nearly at our time limit here. have you got any practical tips for crowdfunding platforms, entrepreneurs, or investors, or any, indeed anybody, any stakeholder industry to navigate the, the regulatory landscape in Europe? Is there anything in particular that you’d point out there?

Oliver Gajda: no, I, look, I, it’s, I mean, even though it’s a really nice piece of law, I assume it’s also very complicated. And what I know is that, platforms all really without exception had to spend a lot of time in adjusting to the legal requirements. You know, involves sandboxes with regulators, discussions. If you don’t have an in house lawyer, it really requires [00:20:00] a dedicated law firm that is quite expensive.

Yeah. And so for the investor, this should be actually very promising because there’s a significant effort into the professionalization and the safeguarding of your interest as an investors being put into these platforms. so that, that I think is, is that, otherwise I’m not sure you need to understand legal issues as an investor, but you should of course make sure that the platform also does a good job as you had to do before, right?

How do they communicate? How do they source ideas? What type of due diligence, what are the, what are the structures of their investments? You know, we need to assume that regulators are not yet. fully on top of this market and that there are still some practices that, you know, over the time will kind of improve.

But, but for platforms, I think as long as you, as they are regulated under ECSPR, that is an absolute positive. There are in some countries still national markets outside of this regulation. [00:21:00] It’s largely Germany and Austria. I cannot see this, survive for much longer. But it depends on the, the national legislator, so it might continue one or two years.

But here you would have basically a choice between ECSPR and nationally, you know, regulated crowdfunding platforms in all other member states, it doesn’t actually make a difference. You only have this. And as a small retail investor, it is the only way to invest directly into startups that stay on an efficient.

And scalable way. Yeah. So that’s, that’s really, really good.

Andy Field: Fantastic. Oliver, thank you so much for sharing your valuable insights, your opinions with us today. It’s clear that ECSPR represents a big step forward for crowdfunding in Europe. And it’s actually exciting to think about how that could ripple into the, you know, the effects of that could ripple globally as well.

So, for those listening, if you’re involved in the crowdfunding space, whether it’s a platform operator, [00:22:00] entrepreneur, an investor, the changes we’ve discussed today that are already in place, they will have had a significant impact on the way you do business. , just be sure to keep an eye on how ECSPR is implementing itself and, and how it can benefit you.

And Oliver, thank you so much again for joining us. it’s been a pleasure having you on and thanks for taking the time to speak to us.

Oliver Gajda: Thank you very much, Andy.

Andy Field: Pleasure. No problem. And thank you to everyone for listening, for tuning into the GECA podcast. , stay tuned for future episodes. We’ve got several coming up in the near future.

We’ll continue exploring the evolving world of crowdfunding and the innovations that are shaping its future. So thanks very much. And we’ll speak to you soon.

by GECA

Marketing to Unlock Crowdfunding Success for Startups and Platforms | GECA Podcast

Marketing to Unlock Crowdfunding Success for Startups and Platforms | GECA Podcast

Join Andy Field as he interviews Claudio Grimoldi, the dynamic founder of TurboCrowd, a specialist marketing agency that has achieved an impressive 96% success rate across 70+ equity crowdfunding campaigns, raising over €50 million. Fresh from captivating audiences at CrowdCon Brussels, Claudio shares his unconventional journey from event promoter to crowdfunding marketing expert, revealing the powerful analogy between running events and crowdfunding campaigns. In this must-listen episode, discover why crowdfunding is fundamentally a marketing operation, not a financial one, and learn the critical “pre-crowd” phase that 90% of startups skip to their detriment. Claudio exposes the four biggest mistakes that kill crowdfunding campaigns, explains why platforms can’t provide investors (and shouldn’t be expected to), and reveals his innovative reward schemes that make investors pledge before campaigns even launch. Whether you’re a startup preparing for crowdfunding, a platform seeking better clients, or an entrepreneur curious about European regulations, this episode provides actionable insights from someone who truly understands that without the crowd, there can be no funding. Packed with practical advice, real-world examples, and frank discussions about what really works in the competitive crowdfunding landscape.

ALSO AVAILABLE ON

Share this article

  • X
  • black x

Andy Field: [00:00:00]Hello, everybody. I’m Andy Field. It’s great to be back hosting the crowdfunding Chronicles, the podcast series from GECA. I was recently attending CrowdCon in Brussels. This was a really interesting event for the industry. It was jointly hosted this year by EuroCrowd and Fintics. But while I was there, I couldn’t help to be impressed by the knowledge and enthusiasm of our special guest today.

He was speaking and he was presenting at the event, and he was talking to a whole room of equity crowdfunding stakeholders, And he had the audience totally captivated by what he had to say. And I kind of knew straight away that it would be great for him to come along and speak to our community here at GECA.

So I’m delighted to welcome Claudio Grimoldi. I hope I’ve pronounced that correctly, Claudio, from Turbocrowd.

Claudio Grimoldi:That’s perfect. Thank you very much. Yeah, better than the average Italian one, eh? Better than the average Italian one.

Andy Field:So Claudio is based in Milan in Italy. Um, Turbocrowd are a specialist marketing company. focusing on helping startups and crowdfunding platforms with their their overall [00:01:00] marketing strategies. And what we’re going to do today is we’re hopefully going to provide some, some insights and practical advice on how businesses can use their marketing tactics to succeed in the equity crowdfunding space.

So we’re going to touch on how a startup business can effectively prepare for an equity crowdfunding campaign. And how crowdfunding platforms can start to understand a little bit about how to market themselves so that they can attract the really high quality startups that they love to have on their platform.

So effectively offering some tips on how both startups and platforms can position themselves for long term success in what is, let’s be honest, a never increasingly competitive crowdfunding landscape. So welcome again, Claudio, and thanks for joining me today. I just wanted to start off by asking you to tell us a little bit about you, your background. How you came to start TurboCrowd.

Claudio Grimoldi:Andy, thank you very much. I will try to follow your hype, the hype you created before. And so trying to do my best. So I came here and it was like a roller coaster, I [00:02:00] would say, because, uh, I had, um, physical education degree. And before it, every time I’m, uh, I starting with a new work every time from scratch, never had a single day as an employee somewhere else.

So I was, a ticket seller, an, event promoter starting as a kid that was 18 years old, more or less. And then I was organizing, transports for, uh, the biggest, uh, international events and festivals in Europe. And, uh, a lot of people from Italy were coming from. So I starting the company, uh, which was, uh, ticketing one.

And at the moment we need, it was 2018. Uh, I was 21 or 22 at the moment when I started. And then some, some years later, We were like, okay, we need to boost it. So we need to raise money and how we can do it. And then, um, I saw completely randomly something about equity crowdfunding. And that was like, yeah, maybe crowdfunding at the beginning.

Sorry, because we saw about the reward. And then another guy told us, uh, you can run an equity crowdfunding, uh, instead of a reward [00:03:00] one, because, uh, you, you guys are offering a service and reward crowdfunding is more for, uh, products. Uh, so you, you need to think about equity. So I started to contact every platform in Italy and it was, uh, middle, , 2018.

And then we started it and we raised the 250, 000 euros. Uh, and I did it by myself and everyone was like, wow, that’s impressive. Because at the moment, Uh, like no one was raising, uh, lots of money, just, uh, just one startup, which was a startup Italia, which raises something like 1 million, but nothing more.

And they, everyone was like, how was it possible before starting an equity crowdfunding campaign? My only work was, uh, uh, uh, calling other people who already run one and asking her what was working and what wasn’t. And, uh, I learned something from it. And I was like, Hey guys, I’m from the marketing side [00:04:00] for events.

I was talking about before, um, and we, I recreated the same idea because if you think about it, crowdfunding, it’s a sort of event because, uh, it, it, it lasts, uh, two months for less and, uh, an event, uh, as a predeterminate, uh, duration. And then, uh, the, the event can host, uh, uh, a maximum of, um, attendees. And in the crowdfunding, you can see the same because it’s not about 18 days.

It’s about the capital you can raise, but it’s the same idea. So it’s something it’s limited by the offer and the time. And if you use the same ideas, you can recreate the same leverages. You can use it even in the events for marketing. And, uh, we started like this. And I was like, it’s pretty simple because it’s called crowdfunding.

So without the crowd, you cannot get any type of funding. So I was not waiting for any type of help from the crowdfunding platform. And I was pushing so much, [00:05:00] even without the crowdfunding platform. And I was the only one. I remember, I clearly remember when, uh, in that period we had some, you know, the startups, uh, competitions, startups, events, uh, something like that.

And lots of them were running, uh, equity crowdfunding, uh, operation, but I was the only one keep pushing and selling stuff. I was, I remember I was. I came from the streets for real. So for me, it was, I was like, if you don’t sell, you cannot eat. So it’s very easy for me. It’s a average day at work, but for others, they were like more into the fashionable stuff, startups, something like, I need my money because my startup will be the best one on a standard and poor 500, something like, and I was like, no, no, no guys.

That’s, that’s not the topic. We did it. And then after, after it, the, uh, crowdfunding platform told me, I think you have the skills, uh, to help others in order to raise money, uh, as you already did. So we started Turbo crowd. I started Turbo Crown in 2019. [00:06:00] So like I, I will not say one year later, some months later.

And it was a smart and clever idea because after we had a problem with the ticketing project, so we closed it. But then I will, I was already in with the crowdfunding, um, marketing. And we started from the equity because just to share with you in the South of Europe, we are more into equity crowdfunding, uh, compared to the North.

Where people are more into the lending crowdfunding and the UK, it’s completely another level when I say about the north, I’m talking about Finland, uh, uh, Oh, um, Netherland, uh, in the looks, the minor looks in general and something like, and, uh, right now we already followed something like 70, uh, campaigns.

Uh, who raised more than 50 million by equity crowdfunding. And I think we are the only one doing this with this track record. And, uh, also I’m very glad and happy to share with you that our success rate is 96 percent [00:07:00] just because equity crowdfunding is not the And do you think, uh, any, any different between just a process?

I would say it’s just a process. And if you can handle the process, you can get money. It’s something, uh, uh, which demand, um, it’s super demanding for you. But you can get a very big results if you put a lot of, a very good execution on it.

Andy Field:And really interesting, uh, actually how you make the analogy between the crowdfunding campaign and, um, an event, you know, and I, and I find myself, um, I have a marketing background too.

And I found a lot of the, the skills and strategies are very transferable between industries. There’s a lot of alignment between different industries and the tactics you employ. And, and that’s a really interesting one. I hadn’t thought of that before. So yeah, thank you for that. So, so that’s, that’s brilliant.

So in a nutshell, What, what does your business do? I mean, you’re a marketing company, right? I get that. But how, how do you position yourself as, as a specialist that helps startups prepare for, for crowdfunding? [00:08:00] Do you use a storytelling yourself? Do you explain your background and, and how you did it yourself, actually?

And, and, Yeah. How does that work?

Claudio Grimoldi:Yeah. At the beginning it was like this because they were like, uh, how can I raise money? And I was like, yeah, I already did it. So you can trust me. But right now they don’t care. And I’m not talking about this. It’s not about any, anything about storytelling. It’s just about the track record.

Because equity crowdfunding is, uh, especially it’s very, it’s something super impacting for your company just because you need to share your company with someone else. So you need to raise money. Every time I’m saying, You will be naked in the middle of the square because everyone can see what you’re raising, how much your data, everything.

Um, and it’s pretty difficult for someone else. So they need to trust you, uh, so much and more than furthermore, um, it’s very important to underline how usually when people are thinking about crowdfunding, they are going directly to, uh, obviously to a crowdfunding platform. Because they were like, I need to do a, uh, to raise a money with [00:09:00] crowdfunding.

So we contact the crowdfunding platform. So in order to get people before they went to a crowdfunding platform, we need to be very skilled and very, and very, um, well organized, uh, to convince them, uh, how can marketing can help them. So for us, it’s just about, uh, showing the track record. Still improving it and furthermore, um, giving for free a lot of advices.

Because every time I’m saying, well, just starting from the first meeting, I will never talk about TurboCrowd. At the end, if you want, I will send you the offer. Yeah, because it’s just but I don’t want to talk about this every time, because you need to understand how crowdfunding works. And when you start understanding how it works, you can see the pattern and the process.

And then you will understand by yourself that you can use [00:10:00] turbo crowd or not, but if it doesn’t start like this, just giving a lot of advices. And also you can see our website, it’s full of material free one.

And, uh, you can, we have almost 200 articles about crowdfunding. Uh, we have the 20 percent of our total. Our traffic from, uh, USA, because we already starting because we started one year ago, directly writing in English. And then we are translating everything in French, German, Dutch, and Spanish, uh, because we are promoting a lot of information on how to do it correctly and how you can raise money for your company.

So it’s just about this. And people will trust you because they were like, okay, I found, I already found, uh, Very good advices and good information from what you told me before. So we can come back to you when we decide to do it. And this is how we get clients.

Andy Field:Yeah, that makes sense. Yeah. And so, so a key focus of what you do then is obviously preparing the, the, the startup business for their crowdfunding venture with a crowdfunding platform.

And that [00:11:00] obviously a key part of that is to grow their own crowd. I mean, obviously, um, most crowdfunding platforms will require a business to have their own crowd before they even enter the process of, of listing on their platform. So an integral part. So yeah, that, that’s great. That, that all makes sense.

Um, so do you get involved in helping crowdfunding platforms attract startups as well?

Claudio Grimoldi:At the beginning, some, uh, a couple of, uh, pla crowdfunding platforms asked me about, uh, following their own marketing, but it was not working at all because we are more good into doing crowdfunding operation. So it’s something you can start and something you can close.

But, uh, the crowdfunding platform itself. Can ask for something very specific because we are more tech guys, uh, doing a CRM, marketing automation, data analysis, everything like this. So sometimes they are just asking for something, something in particular, but they created their own marketing team. So just when they started, they are like, can you help [00:12:00] me doing something or better than this, another indirect way, um, to do it, it’s, uh, providing us potential clients as a startups or companies and following them directly.

Because if they. Company at the start of the entrepreneur is doing a very good marketing. The platform itself is getting a lot of good traffic and potential investors. So they are like, I cannot pay, I can just focus on getting the best clients and best companies for raising money in order to get the best potential investors provided by the other company itself, who is already raising.

Uh, here and I want, I want also to underline what you were saying before you’re saying, uh, yeah, cloud funding platforms are looking for someone who already has a crowd or something like, and it’s super important. Remember the, uh, the, the business for a crowdfunding platforms, it’s raising money. It’s not about the launching campaigns.

That’s super important. So if you go to a crowdfunding platform and saying, okay, this is my pitch, this is my boring business plan. This is my boring business. This is everything like this. And what about crowdfunding? [00:13:00] They will reject you 100, not 100, but 90 percent of times. That’s because maybe you just need to prove something about your business and you can execute it in the best way.

But if you came to there saying, okay, I have something like, I’m just sharing with you an example, 50k pre committed, the pre commitment is someone else who already pledged money for your crowdfunding campaign, they will accept you. They are not looking for any type of, they are not looking so much into pre money valuation, something like, because the, the point is not about your, uh, financial stuff.

And so with equity, you’re not finding everyone. It’s misleading. These it’s incredible. Uh, they are someone who is preparing the best pitch or the best business business plan. As you can see, it’s not raising any money. Someone else who is doing it on Excel with a, with a, just a, just a single sheet, you can see, you can see is going to raise a lot of, a lot of million with it.

And trust me, every time I can see it, I can see the pattern.

Andy Field: [00:14:00]Great. Yeah. And I’m sure that happens quite a lot with our, um, I mean, we’ve got several, uh, platforms who are members of GECA or supporters of GECA. And I know from speaking to them that they will, they will reject many applications because there is simply no marketing and no crowd.

Yeah. So in that instance, is that, is that a scenario where, um, platforms could go to you or another specialist marketing company and sort of say, look, these guys have got what looks like a great, a great business. The potential is there, but they need some help in getting ready for, for launching on a crowdfunding platform.

Do you, do you get clients in that way as in almost referrals almost from, from crowdfunding platforms?

Claudio Grimoldi:Yeah, it’s always about this. It’s, uh, I would say 50, 50. So 50 percent are coming from our marketing and 50 percent as a referrals, uh, directly from a business advisors, financial advisors, platform itself, and something like, and, uh, we were, sometimes they are, uh, uh, speaking about us like the pre crowd [00:15:00] guys, because it’s always about doing the marketing before the campaign starts.

That’s the, that’s the real point. That’s the real point. Every time for, uh, For explaining it and the best I’m saying, because you’re from UK. Okay. And what, what, uh, what, what, um, football team do you support?

Andy Field:Oh, you don’t want to know that, but I’ll tell you, uh, Leicester City.

Claudio Grimoldi:Oh, Leicester. Yeah. Come on. Uh, we know Claudio Ranieri. Someone like, okay. So, uh, think about, um, Leicester. Uh, before going every Sunday, uh, play to play somewhere else, it’s, uh, doing a lot of trainings and that, that people are already, uh, doing a lot of trainings even before that weekend, because the, the, the week, because they are training for years and they are the best doing this and why someone is, wants to do a crowdfunding operation without doing the trainings.

So, and the training for crowdfunding is pre crowd. If you’re skipping the pre crowd is the worst mistake you can ever [00:16:00] do. Don’t skip it. And it’s very simple how to manage it. You need to raise the 90 percent of the minimum goal you set with the equity crowdfunding operation, nothing more. And you got them just using pledges.

So you’re, you’re getting out saying, okay, guys, I will, I will have this business or I already have this type of business. I’m running it and I want to improve it. And when I want to grow and something like want to be my shareholders in this case, and if you want to do it, you can pledge your money here.

And then, then I will share with you how you can, you can doing it a very smart and, um, efficient way. If you want to do it, uh, just let me know how many heroes you want to pledge or something like 100, 500, 1k, whatever you want. The sum of the every from, from, from every pledges must do the 90 percent of the minimum goal.

Then you can start doing campaign.

Andy Field:Yeah.

Claudio Grimoldi:You raise money and then you will come back. That’s the reason why we have the 96 percent of times succeeding that if someone is [00:17:00] complaining about the experience, the crowdfunding experience, it’s not about not getting the point. It’s about, it was too expensive or, and, or it was too slow.

So they thought about it was a cheaper and maybe faster, but it’s about your business and how you, what type of, um, Has assets you already build, uh, what type of, uh, people are you already committed to your businesses? It’s nothing, it’s not related just with the crowdfunding. It’s, it’s with your business because doing marketing means going to the market and you will see what, uh, what type of feed, the feedback the market will give you.

Andy Field:Yeah, that makes sense. Preparation is what you’re saying is, is absolutely key and cannot

Claudio Grimoldi:be missed. 99%.

Andy Field:Yeah, yeah, absolutely.

Claudio Grimoldi:99%.

Andy Field:So, something else that just springs to mind, our mission at GECA is to ultimately make equity crowdfunding borderless. You know, there’s lots of, there’s lots of things that are, um, that are going to need to be addressed to make that happen.

Um, but we’re, we’re starting to do that by building our community and, and asking people to essentially say that they, they agree to that, um, to that mission. So with that in [00:18:00] mind, how. Are you able to work with businesses? I mean, obviously you’re based in Italy, but I’m assuming you work with businesses outside of Italy and perhaps platforms outside of Italy as well.

Is that correct? Am I right in making that assumption?

Claudio Grimoldi:Yeah, yeah, I’m, I’m fighting against it because usually, um, people from every time I’m saying people from Germany, uh, France, Spain, and Italy as well are too much tied up with their own countries because we have big countries in Italy, uh, 62 million people living here.

And so, And I saw how people from, for example, the Netherlands or maybe someone from Ireland, for example, people from Luxembourg, people from little countries, for them, it’s clearly they need to start cross borders. So even for us, we have a problem more. You can hear my English, it’s stuck. Still something it’s very bad.

And for the Italians, every time it’s a nightmare going outside. And I was in, uh, in the [00:19:00] Netherlands, uh, started since, um, yesterday and three weeks before we, we met in, uh, Brussels in Belgium. So, yeah, we started to do it, uh, even outside of Europe. It’s just about business. Because for us, we don’t have to follow any type of compliance.

That’s super important. When I was, uh, speaking about crowdfunding, even, even, uh, equity crowdfunding before ACS PR. So the, the new regulation, uh, we have in Europe, I was like, I don’t care about compliance because it’s just about crowdfunding, about how to do it in the best way, but we don’t have to follow it.

The company has, so we don’t have any type of, uh, limit about our going, um, cross border. So it’s very important right now with the same, uh, regulation, it’s very easy, easy. Just you need to get in the trust by other companies, but it’s something you need to do. Likewise, it’s very important to underline how it’s forbidden.

So it’s illegal for the platforms to promote [00:20:00] a single crowdfunding operation. It’s very important to underline this one, because it’s a very, it’s a, it’s a gold asset for us, because the ESMA, uh, the regulator in Europe, say, says you cannot promote. a single campaign until they are going to close something like in the, in the, in the, in the last week.

Andy Field:Yeah.

Claudio Grimoldi:But before it, you need to promote everyone in the same way. So they cannot sell any type of promote and any type of marketing. They can promote everyone in a very big way, but they cannot promote someone in particular. And it’s very important. And they cannot sell anything like this. And it’s very important because they need to ask to someone else like turbo crowd, for example.

Andy Field:That’s very interesting. And that’s part of the European regulation, the one that’s been established since 2021, I believe.

Claudio Grimoldi:The European, no, no, no. In 2023. In the 10th of November, they started, they started in the 2021. It depends on which country. Uh, starting to, giving out to give out the license. I think the, the first one was in, I, [00:21:00] I can, I can check it out in the meanwhile.

Uh, uh, because you can see it’s, uh, on, uh, asthma, uh, registers do asthma au. Uh, you can see European crowdfunding service provider and the first one who had a, um, legal entity and authorization. Okay. 2021 Lit one. Yeah. The first one was, uh, in lit one. Yeah. The second one was in 2022 was Crowdcube in Spain, but we, we came in, in Italy, for example, was, uh.

It was a pain for real, because, uh, at, at the last day, we were not having sound, uh, anyone, uh, uh, had any type of, uh, license. So no one can, was not able to work.

Andy Field:Yeah.

Claudio Grimoldi:Uh, it was a very, very big problem. So we stopped for something like one month and then we’re starting again. But yeah. Yeah, someone already started.

Yeah, yeah, right now it’s it’s already done. It’s already about last year was a nightmare for everyone.

Andy Field:Yeah, right. Okay. Um, we

Claudio Grimoldi:don’t have any, we don’t, [00:22:00] we don’t need to get it. But you know, if someone else is not getting the license, we cannot work so much. That’s it. You’re working with people who must have the license.

Andy Field:Yeah, yeah, yeah.

Andy Field:Now that makes sense. Brilliant. Okay. So, um, So are there any trends or commonalities that you see on a typical basis without going into sort of specifics, but but just generally when you’re working with startups, anything that the platforms and we’ve got, we’ve got plenty of platforms that that support Gekko will be listening to this, that they should be aware of when they’re working with their clients that comes up time after time after time.

Is there anything that you could maybe pinpoint there?

Claudio Grimoldi:But from the sorry, I don’t get from the startup or company perspective or from the platform one.

Andy Field:So any commonalities and trends that are happening with startups that are very common, that may be mistakes that they’re making, or maybe things that they’re missing?

Ah, yeah, yeah, yeah. That kind of thing. Yeah, that platform should do well.

Claudio Grimoldi:Yeah, sure. Um, usually platform don’t have to be in a rush for raising money. [00:23:00] Uh, because, or they already get a very good, very good clients. I’m sorry for promoting it indirectly, but for example, Crowdcube, people are talking about, uh, Versailles Collective, but Versailles Collective is already a unicorn.

It’s a very big brand, very famous one and so on. So it clearly can raise money like everywhere because it’s, uh, It’s already an established business, like Revolut when he did it on Cedars was the same. Because Revolut Come on guys. It’s revolution. Uh, it’s like BrewDog at the end. BrewDog was BrewDog. I, this, it’s very simple for the crowdfunding platforms, but, but from the, uh, companies, the biggest problem, it’s thinking about crowdfunding as a standalone operation.

That’s, that’s every time I, and getting angry about this, it’s not about. It’s not about a standalone operation. It’s a part of your marketing investments, because thinking about if you’re, uh, if your business is already running, you can easily, uh, raise money, [00:24:00] maybe you need to think about something bigger, uh, in order to get more money thinking about like, um, uh, a restaurant who want to open a chains.

A chain of restaurants, uh, you need to do something bigger, but you already have people coming there. Maybe it’s a, it’s the best restaurant in the city and you can, you can use it even in others, but you need to think about, okay, I’m already doing it and I need to improve my own marketing. But if you didn’t start with about this, also, you need to, you need to start from the marketing side because otherwise you’re not going to raise any type of money.

But sometimes people are just, um. Showing off, uh, business plans and something like, and 99 percent of times startups are failing and they are dying. So why? People need to trust you because you’re not, others, others, it’s not about you, but others already, uh, did it very, very bad. So you need to think about something else.

And starting from the marketing side means, uh, having, can handling, having the possibility [00:25:00] to handle, uh, investments and potential clients and investors and so on. And just to auto, uh, uh, assist myself, I want to share with you that the best investor as you can get, it’s your client or potential one that’s super important.

Uh, I don’t know how out of Italy, but I know Italy very well as a, every type of assets here. It’s impressive. Uh, if you look at the Politecnico di Milano. It’s the best university in Italy, probably. And they are doing a report each year and you can see how much the investments are, uh, splitted by one, a single investor, a two time investor, three time investor, and so on till, uh, 10 times or more investor.

Um, the, it’s several investors are the 1. 18 percent of the world population who already done an investment. The 75 percent is, is a one time investor. And the 15 percent it’s a two time investors. So it means the 90 percent of the market it’s [00:26:00] already done. It means technically, if you go on a crowdfunding and more or less, it’s the same in, in the Europe, but these are, these are the number in it, numbers in Italy.

So it means if you’re starting with a crowdfunding operation, you need to think about, okay, technically the 90 percent of investors will came from me. And then we will understand how to interact with the company, with the platform. So from the platform perspective, uh, it means, uh, get someone who is already skilled with marketing or someone who wants to be committed in marketing and we will prove it before the campaign starts from the company perspective.

It means, uh, um, Proof you have a track record with your clients and so on. It means having also digital assets like something like I will send out a lot of marketing, uh, marketing stuff. I will promote myself with the articles. I already did paid advertising. I have a clean and CRM and processes with marketing, with sales and something like, and you will see it will go, it will work very well.

Andy Field: And I guess they’re the things, one of the questions I was going to ask you [00:27:00] actually was, is there anything that startup businesses can do to help themselves before they even engage working with a specialist marketing company like you? And I suppose you’ve just outlined some of the things there that actually they should be doing anyway, the specialist marketing person, you know, the CRM, managing a good CRM, um, that kind of thing.

Is there anything that, that maybe platforms can do to help them in, in, in that sense, or is that, or is kind of the advice then is to say, well, actually you probably do need specialist marketing support and working with a, with a firm like yours.

Claudio Grimoldi:I will, I will be stick with my own idea about, uh, speaking with TurboCrowd means, uh, getting a lot of good advice is more or less, and we will try to, not about how we can do our stuff.

So yeah, I will show you, uh, usually every time I’m speaking about four. biggest mistake, big, big mistakes people are doing when they raise money. So the first one about equity crowdfunding is thinking about the crowdfunding platform will provide you investors.

Andy Field:Yeah.

Claudio Grimoldi:That’s not the point. The crowdfunding platform is a, it’s a platform.

It’s [00:28:00] a software, um, um, able to monetize people. Yep. And it’s, uh, already, um, uh, our, how can we say it’s following the, the, the, the local law we, for you in, uh, in uk in, in Europe, it means they have a license, uh, in order to work in something like, and, uh, why you think about crowdfund, uh, crowdfunding platforms will provide you a lot of investors, uh, compared to YouTube.

Because if you record this video and we will put it is on YouTube, we are not expecting to be millionaire tomorrow, but YouTube beats, come on, it’s YouTube. And with a billion of people, uh, visiting it each year. And there is no, any type of crowdfunding platform who can even think about something like the 1 percent of YouTube, but people are still thinking about, yeah, I will, I will list my crowdfunding operation.

Then they will provide me investors. Why this is not happening. This is not happening. That’s the, that’s one of the biggest mistake. The first one, the second one. [00:29:00] Um, it’s about the thinking about these as a financial operation instead of a marketing one. Remember there is a reason why crowdfunding it’s called crowd breathe.

Again, a lot of and then funding without the crowd, you can, you cannot get any type of funding. So you need to get the crowd in order to get the funding. If you don’t want to do marketing, there is a, there are other ways to raise money. Crowdfunding means marketing. If you don’t want to do marketing, you can go to banks, you can go to VCs, you can do national grants.

There are plenty of other solutions in order to do it, but don’t do crowdfunding without it. That’s super important. Just to be clear and do something more. If you’re running a lending crowdfunding or real estate crowdfunding operation, because of real estate and because in Italy, in Italy, sorry, in Europe, equity and lending are still the same regulation.

And also real estate could be lending or equity as well. Um, It’s, it’s a bit different [00:30:00] because the platform will provide you, uh, the investors, but you need to work with the, uh, um, marketing in order to get, uh, get addressed by that or get accepted by the, the best platforms you’re, uh, you’re doing. But when you’re, when you’re starting a campaign, you’re already doing it.

It’s, it’s a bit different in this case, just for real estate and lending crowdfunding. Yeah. So third, the third error, which is the biggest one, it’s skipping the pre crowd phase where this, uh, spoke about this. So getting the 90 percent is the minimum goal. Yeah. It’s, it’s about pledging. And then there is the biggest, uh, the biggest question, how I can get pledges.

Uh, because if you think about this, uh, Andy will start the pre crowd phase and then we’ll ask Claudio. Hello, Claudio. Yeah. You want to put you, uh, do you want to pledge money for my crowdfunding operation? Um, And I will turn off the phone, probably I will close it. And it was like, yeah, but why? And I will start again.

And it wasn’t working again, again, again. And [00:31:00] people are like, when you will start the campaign, I will decide if I’m well invested or not. Okay. How to do it? How to do it? This is the second biggest mistake. And I want to, I want to be super clear about this. People are investing only because of your rewards.

If you think about, uh, running a equity crowdfunding operation, just giving out shares, you are probably, I would say just crazy. Yeah. Nothing more because everyone is giving out shares.

Andy Field:Yeah.

Claudio Grimoldi:Crowd equity crowdfunding means smart money. It’s not just about raising money. It’s about smart money. So people can provide something more than money.

And what, which one is the best investors as we already did before? Uh, we spoke before it’s the client or the potential one, and how we can interact with the client or potential one. Let’s. Uh, talk about someone who is doing helmets for, uh, you know, the [00:32:00] motorbikes and something like, my grandmother, we will, we will, we’ll be not interested in any type of helmets because she doesn’t have any type of motorbikes, obviously, but someone who is already, uh, in, Could be very interested in buying shares of someone else who is giving out something like the 10 percent lifetime discount of the helmets and a limited edition of their helmet based on how many they are investing, something like.

So every time we are creating the metric scheme for the rewards. Uh, so you need to mix the, Uh, product or service, uh, reward, the experience one and the financial one. When you sum everything like this, you will start promoting them, promoting them with a, uh, pre crowd phase. And you will say, Hey, Andy, we’ll say, uh, Claudio, uh, we’ll say to Claudio, Claudio, don’t turn off the phone, please.

One moment. Just one moment. Uh, if you pledge money, I will give you, when will you, when you will invest later, I will give you a better reward. Okay. Okay. That’s going to be a strategy. So you can get easy. You can get easily, uh, [00:33:00] rewards, uh, sorry. You can get easily, uh, pledges before using rewards and then you will increase the, uh, the speed of your pre crowd phase.

And then you will send to the campaign in very easy way, still using the, uh, the rewards and the metric scheme.

Andy Field:Yeah. Oh, yeah. That that’s really interesting. Really interesting way of looking at it. Thank you. Look, we’ve got about two minutes left. Um, yeah, I’m sure we can go on and talk about these. You’ve kindly agreed to come on and talk to us again in a bit more detail.

Some of the some of the other aspects of my best. Just to show you

Claudio Grimoldi:the last mantra.

Andy Field:Yes, I was just going to say that. The

Claudio Grimoldi:capital gain, yeah, the capital gain is potential, future, and taxed. So if someone else is giving you a capital gain, it will be in the future. Maybe they will give you out, and then you will pay taxes on it.

But the rewards are secure, are immediate, and they are, you don’t have to pay any type of taxes. So thinking about that, you will get, you will get [00:34:00] the 10 percent discount lifetime. It’s after the campaign, it’s secure, and you don’t have to be taxed on it. Just done.

Andy Field:Amazing. Thank you. That was a really, really interesting summary.

Um, and listen, I think those four things actually, which you’ve just ended with there, we could go into each of those in future episodes. It’s so interesting to discuss them. So thank you so much. Um, yeah, it’s been great. Like I said, we’ll go into things in a little bit more detail in future, future episodes.

Thanks everybody for listening today. Um, I’d like to thank everyone for listening, whether you’re streaming, whether you’re downloading, whatever, and We’ll be having more episodes, um, in the near future. We’re recording, uh, three episodes in the next few days, actually. So they’ll be coming out thick and fast.

So thanks everybody for listening to us. And thanks again, Claudio, for joining us today. Thank you.

Claudio Grimoldi:Thank you to us. Thanks everyone who listened to this podcast.

Andy Field:Thanks.

by GECA