Equity crowdfunding responds positively to criticism and scrutiny, according to new reports into the state of crowdfunding in Europe. We take a look at the findings, offer some pointers, and let you download the whole reports yourselves.
Some of the highest quality research we've seen into crowdfunding comes from the Cambridge Centre for Alternative Finance (CCAF), part of Cambridge University's Judge Business School. Today we are focus on two new reports that builds on the CCAF's data and add additional work and interviewing by The Crowdfunding Hub, supported by the Oxford University Said Business School (SBS) and insurance company AIG.
The researchers consulted more than thirty experts in different European countries and analysed them according to a taxonomy developed by Robert Wardrop and his team at CCAF. Given the fast evolving nature of crowdfunding, we want to see the best quality evidence receive the widest possible circulation, so this is a welcome addition.
You can also read an overview of this report on Crowdfundinghub.eu
For the second report, the researchers of CrowdfundingHub worked together with European experts from SyndicateRoom, Seedrs, Invesdor, and elsewhere to create a state-of-the-art overview of the Equity Crowdfunding industry in Europe.
Key issues in the equity crowdfunding report were deal sizes, investor protection, and the role of angel investors. Many participants in the industry would like to see secondary markets for shares in startup businesses.
CrowdfundingHub CEO and founder Ronald Kleverlaan told Crowdfund Insider on Friday that he expects innovation in this area to come from "new industry players, that will work in a later stage together with the established exchanges."
"To speed up this process, it would be good for the equity crowdfunding industry to use standardised securities that are recognised by the capital markets, or decide on a common standard.”
The second report, "Equity Crowdfunding – Considering potential risks and liabilities as the industry grows and matures may be downloaded from Scribd", or from Crowdfundinghub.eu [HTML, with a link to a registration page.]