Eco-Crowdfunding in RECOMMEND partner regions

Presentations by

Lead Partner, Slovenia, Czech Republic & Italy24th October 2013

24th October 2013

Eco-Crowdfunding and the

public sector in Austria

Benjamin KuscherRECOMMEND External consultant

ConPlusUltra Ltd.Benjamin.kuscher@conplusultra.com

24th October 2013

24th October 2013

What is crowd funding?How does it work?

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Definition:

The collective effort of individuals to pool money in order to support efforts from other people or organisations.

It works when:

•Someone has an idea but insufficient capital•They put this idea on a crowd funding website, with a video and description.•The creators state the amount they seek•‘Fans’ pledge money towards the cause

24th October 2013

What public sector can do for Crowdfunding?

• Question : What does crowdfunding has to do with the public sector?

• Crowdfunding is currently mainly a private initiative

• Change the law!• Promote the idea of crowdfunding• Promote already legal forms of crowdfunding• Co invest with crowdfunding platforms

424th October 2013

Eco-Crowdfunding in Austria

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LEGAL: Sale-and-Lease-Back-Contract

-The client buys a solar panel from the energy provider.

-The energy provider leases the panel back and pays a yearly rent to the client.

-The client is therefore the official owner of the panel.

-www.buergersolarkraftwerk.at

ILLEGAL: Company-Saving-Club

-A company offers interest if a private person directly gives a credit.

-Those credits can be very small. (€ 200). GEA collected more than € 3,000,000.-

-The financial market supervision sees that as hidden bank business without banking licence-http://www.gea.at/home.html

24th October 2013

Two examples

Eco-Crowdfunding in Austria - Conclusion

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LEGAL: Sale-and-Lease-Back-Contract

-This model is very useful for already established energy providers to finance additional green plants

-Only already existing technologies will be financed via this model

-Good for the environment but no innovation

ILLEGAL: Company-Saving-Club

-High risk for the client.-High revenue for the client.-Very good to finance new innovative ideas.-The banking sector is extremely risk avers and therefore this is an alternative model.-The national and European policy need to define new regulations

24th October 2013

Two examples

(eco) crowdfunding in the Czech Republic

Jan JarešEkoport, Czech Republic

24th October 2013

24th October 2013

Crowdfunding in CZ

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• booming and fast developing topic right now• though only few sectors affected (by importance)

charity (e.g. Charity Water, Internet pomáhá) culture / art (e.g. Kickstarter, IndieGoGo, HitHit) business / investments (e.g. Profounder,

Sprowd, Open Startups)• within charity sector it is sometimes being replaced by

“micro-financing” or “social business” tools• no specific tools for “eco” business

24th October 2013

Pre-conditions for CF in general

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• limitations within Czech legal systems• minimal investment in the shareholds of the company

(ltd.) is 20.000 CZK (= 800 eur) • not only byrocracy is unbearable with e.g. 1000

shareholders / investors

• inspiration by US law “Access to Capital Act” needed in EU / CZ!

24th October 2013

Eco-Crowdfunding and the

public sector in Slovenia

Uroš Majeričuros@lea-ptuj.si

24th October 2013

24th October 2013

What is crowd funding?

• The use of small amounts of capital from a large number of individuals to finance a new business venture.

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What public sector can do for Crowdfunding?

- develop or co invest in Crowdfunding platforms- include public tendering in Crowdfunding

platforms (Startup Slovenia)

1224th October 2013

Crowdfundig in Slovenia

• Initiative Slovenia Crowdfunding – helps businesses to start a Crowdfunding campains

• Development agency of Maribor – helps to develop a functioning company from an idea

1324th October 2013

Initiative Slovenia Crowdfunding

Helped to develop 7 campaigns• Red Pitaya measuring instrument • Xvida Boomerang• Lumu • ONDU Camera• Musguard• LLStol – LL Chair• Beer Brewery Pelicon

1424th October 2013

(eco) crowdfunding in the Czech Republic

Jan JarešEkoport, Czech Republic

24th October 2013

24th October 2013

Crowdfunding in CZ

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• booming and fast developing topic right now• though only few sectors affected (by importance)

charity (e.g. Charity Water, Internet pomáhá) culture / art (e.g. Kickstarter, IndieGoGo, HitHit) business / investments (e.g. Profounder,

Sprowd, Open Startups)• within charity sector it is sometimes being replaced by

“micro-financing” or “social business” tools• no specific tools for “eco” business

24th October 2013

Pre-conditions for CF in general

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• limitations within Czech legal systems• minimal investment in the shareholds of the company

(ltd.) is 20.000 CZK (= 800 eur) • not only byrocracy is unbearable with e.g. 1000

shareholders / investors

• inspiration by US law “Access to Capital Act” needed in EU / CZ!

24th October 2013

Equity-Crowdfunding in Italy

Claudio CarloneRECOMMEND PROJECT PARTNER External consultant

Eurocentro s.r.l.c.carlone@eurocentro.it

24th October 2013

24th October 2013

What is the Equity-Crowdfunding

• People who are going to invest money in a start-up will receive its company stocks.

Other types of crowdfunding:• Reward based crowdfunding (money for a

reward)• Donation based crowdfunding (money for

nothing)• Social lending (it is a real term loan granted

from different people)

1924th October 2013

The new Italian legislation on Equity-

crowdfunding• The “Growth Decree 2.0” approved on October

2012 stated that all people can invest money in a start-up trough crowdfunding online portals.

• Before of the Decree only professional investors could invest money in start-ups by receiving stocks!

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PLEASE NOTE

• The Decree is applied only to the constitution of start-ups in the form of L.t.d. companies.

• The equity-crowfunding can be promoted only by specific online portals inserted in the “Consob Register” (the Italian Commission for the Regulation of Stock Exchanges).

2124th October 2013

Equity-Crowdfunding Pro&Con

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PRO:

-Very specific National Law;-Fostering of the innovative economic development;-Focus on SMEs;-If the innovative idea is good you can receive more money than you expected;-Investors have many reasons to invest in the idea (not only economic interests).

CON:

-Benefits limited to very specific companies (e.g. innovative start-ups and L.t.d. company);

-Vey good communication and marketing skills are required to promote the idea among people and to receive funds.

24th October 2013

Some examples of Equity-Crowdfunding in Eco-

Innovation• Actually there isn’t a specific online portal dedicated only to

the eco-innovative equity-crowdfunding.

BUT

• Please, consult some crowdfunding online-portals active in Italy:– Produzionidalbasso (www.produzionidalbasso.com) the first

Italian crowdfunding online portal!– Kapipal (www.kapipal.com) general crowdfunding online portal,

particularly dedicated to personal projects funding.– Siamosoci (www.siamosoci.com) specific equity-crowdfunding

online portal, a sort of start-up browser for investors.– Ulele (http://it.ulule.com) crowdfunding online portal dedicated to

creative and innovative projects funding.

2324th October 2013

Italian Crow-fundingNetwork

• It is an independent Italian association with the aim to:– Map the crowdfunding offer in the Italian market;– Support the crowdfunding regulation process by the

national law;– Represent crowdfunding on-line platforms interests;– Improve cooperation between organisations and

institutions.

http://www.italiancrowdfunding.org/home

2424th October 2013

THANK YOU FOR YOU ATTENTION

2524th October 2013