Crowdfunding: an opportunity for Jersey?

Народное финансирование? Прямое финансирование физическими лицами проекта или предприятия!? У нас это ассоциируется с чем-то вроде “МММ”, что заканчивается плачевно. А на Джерси это работает, в особенности, в условиях финансового кризиса. И не только на Джерси. Институт, называемый “краудфандинг” приобрел популярность и в США, и в Соединенном Королевстве, да и во всем Евросоюзе.

Автор настоящей публикации раскрывает достоинства краудфандинга, а также рассматривает его разновидности. В частности, упоминается народное кредитование и краудинвестинг. Кроме того, вносятся предложения о развитии краудфандинга на Джерси.

 Crowdfunding is a way in which individuals and businesses raise money to finance or re-finance their activities through online platforms. These online platforms are often known as ‘crowdfunding platforms’ and they typically adopt either a loan-based model or an investment-based model to attract a broader range of individual funders.

Why crowdfunding?

Crowdfunding grew out of the 2008 financial crisis and was initially viewed by many as a short-term funding solution for businesses seeking to raise debt finance in a marketplace where the traditional lending institutions were holding onto their capital. It was particularly difficult for start-ups and early-stage growth companies to raise finance during this period. The culture at this time was risk averse and start-ups are, by their very nature, perceived to be risky. However, although initially seen by many as a short-term fad, crowdfunding is now a recognised funding platform that is gaining traction globally (mainly in the United Kingdom and the United States). It is part of an increasingly fragmented lending market which is no longer dominated solely by the big global banks.

How does it work?

While crowdfunding models are simple, they seek to challenge traditional lending methods. The online platforms give those seeking to raise funds access to thousands of potential lenders and investors that are seeking a return on their money. Although the sums risked by each lender or investor may be modest, the available funding can grow quickly and become substantial when aggregated with the amounts contributed by others.

Loan-based crowdfunding

The loan-based crowdfunding model is more closely linked to the traditional lending model of bigger banks and is sometimes referred to as ‘peer-to-peer lending’. Individual investors lend modest sums of money for a set term with an agreed rate of interest. Provided that the business is successful, the individual lender will receive interest, together with the principal amount loaned at the end of the term.

Investment-base crowdfunding

The investment-based crowdfunding model invites investors to subscribe for shares in a company looking to raise funds. A return on this investment is likely only when a market for trading those shares is established – such as when the company is listed on a regulated exchange or sold. Equity investors hoping that the company will return a dividend in the meantime should recognise that, when investing in a start-up, any such dividend payments are likely to be many years away.

Jersey

Interestingly, despite the rise of the crowdfunding industry, Jersey has no crowdfunding platform. This is because most UK-based crowdfunding platforms will only accept applications from UK or EU incorporated companies. Local start-ups and other businesses could potentially benefit greatly from the development of a crowdfunding platform in Jersey. Once established, there may also be scope to scale-up a Jersey crowdfunding platform to benefit entities offshore. In light of these possible advantages, crowdfunding could represent a real opportunity for Jersey.

As with any new financial service offering, a crowdfunding platform would of course require appropriate oversight and regulation. It is suggested that Jersey’s existing legal and regulatory framework could be readily adapted to accommodate the crowdfunding model while continuing to safeguard Jersey’s ‘blue chip’ international reputation. The sunrise regulation of crowdfunding in the United Kingdom, which was developed by both lawmakers and the UK Financial and Conduct Authority, could serve as a useful template for Jersey in developing its own legislation.

Comment

So there you have it. Crowdfunding has been developing for the last eight or so years and is now well established in the United Kingdom and United States. With Digital Jersey having recently identified fintech as one of its three main areas of focus for the development of Jersey’s digital economy, crowdfunding could well turn out to be one of the keys to implementing that strategy, should Jersey choose to embrace it.

Автор: Alexander Curry

Источник: http://www.internationallawoffice.com/Newsletters/Offshore-Services/Jersey/Ogier/Crowdfunding-an-opportunity-for-Jersey?utm_source=ILO+Newsletter&utm_medium=email&utm_content=Newsletter+2016-07-14&utm_campaign=Offshore+Services+Newsletter

Читайте также