Government Tipped To Allow Crowdfunding Investments Into Isas

Overnight Markets: Nasdaq surpasses 4,000 for first time in 13 years

EIS and VCT money follows the tax breaks and [renewable energy] got drunk on disloyal money and that didnt help the sector, said Davis. ISA moneywould be more long term. Crowdfunding is currently under scrutiny from the financial regulator, the Financial Conduct Authority (FCA), which takes over the regulation of the sector next April. The regulator is concerned that individuals are attracted to the high interest rates offered through crowdfunding sites but do not understand the risks associated with investment. It wants to ensure that only sophisticated investors put money into equity investment crowdfunding or that less sophisticated investors put a maximum of 10% of their savings into companies offering shares for cashon crowdfunding platforms.

Seedrs becomes first equity crowdfunding platform to operate across Europe

“We kept getting emails from people saying ‘why won’t you let me invest or raise (money)?’ … we have seen a tremendous amount of demand,” said Chief Executive Jeff Lynn. “We wanted to expose entrepreneurs to as a big a pool of capital as possible and expose investors to as many deals as possible.” While other crowdfunding platforms have opened in more than one country, Seedrs would be the first to offer cross-border investment, Lynn said. To help fund the expansion, Seedrs said it planned to raise 750,000 pounds via its own site, a target it met within hours. Initially all funding will be done in pounds, but Seedrs plans to extend this to give companies and investors the ability to fund in euros from early next year.

British crowdfunding site to allow cross-border investment

Of course, operating across the continent gives Seedrs something of an edge when it comes to scale. A platform like ours is a network effects-driven platform, Lynn told me. The more investors we have, the more value we create for entrepreneurs. The more deal flow we have, the more value we create for investors. National borders are kind of arbitrary when it comes to investing and startups offline, people tended to invest close to home, but on the internet why would you limit it to just one country? Scale isnt the only advantage, though. Under European law, EU member states can allow the raising of up to 5 million ($6.8 million) through equity crowdfunding platforms but they can also set the limit as low as 100,000, which many such as France still do. The UK set its cap at 5 million and, as thats where Seedrs is based, thats its limit across the EU. The individual country rules arent the ones that apply in our case everything we do is under UK law, Lynn said.

Goldee, The “World’s Smartest Light Switch,” Crowdfunding Now


The device is expected to ship to backers in the Summer of 2014. The campaign uses Braintree as a payment solution and will accept contributions from eight countries:USA, Canada, United Kingdom, Netherlands, Germany, Australia, New Zealand, The Czech Republic and Slovakia. If the Goldee can meet or exceed this crowdfunding goal, they may be primed for a follow-on raise from more established sources of capital. VCs and angels have been bullish on smart home devices as of late, and especially those that can prove a market via crowdfunding. One important thing bears mentioning as well: this is one of the best crowdfunding campaign pages Ive ever seen in over a year of covering the space. For crowdfunders that are looking for a case study in how to crowdfund a product using their own solution, this is a great example.


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