Why merge?
Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Equity Crowdfunding, Alternative Funding
6 reasons non-profits should consider crowdfunding
ATB | ATB Financial | Sep 14, 2020 |
At its most basic level, crowdfunding is the use of a platform to raise money from a large number of people online. Beyond the surface level-definition, it’s an opportunity to tell your story which compels a crowd to give.
Unlike funding from investors, financial institutions or the government, crowdfunding is passion-driven. When you connect with people on a heart-level, they’ll be excited to support you.
See: [Breaking] SEC Votes to Approve Changes to Regulation Crowdfunding Increasing the Maximum Raise to $5 Million
Non-profits can use crowdfunding too. In fact, crowdfunding for non-profit organizations doesn’t look too different from crowdfunding for for-profits. Both types of organizations set a funding goal, share the “why” behind the goal through video, words and images, and get funding from the crowd.
Here are 6 reasons non-profits should consider crowdfunding:
1. Reach a different demographic
Crowdfunding can help your nonprofit reach a different generation or audience than you may normally connect with. Specifically, Millennials and Gen Z (between the ages of 24-35) are the most likely to participate in crowdfunding campaigns than any other age group. Human Rights and International Development, Child Development, Environmental and Victims of Abuse charities and causes are a soft sport for these generations.
2. Campaign supporters will help spread the word
Another thing you probably already know about Millenials and Gen Z—technology comes second nature to them. If you create a crowdfunding campaign, you’ll likely not only reach that demographic, but potentially some of their followers and friends on social media. An online crowdfunding campaign is incredibly shareable, making it easy for one person’s interest in your cause to grow to tens or hundreds through one share on social media.
See: NEW REPORT: Small Business SOS – It’s Time to Supercharge Local Crowdfunding to Unlock Needed Capital
3. Start a conversation about what your organization supports
Along with shareability comes the potential for your cause to start conversation online. If you or the crowd shares your campaign on social media, there's an opportunity to have important conversations around the topic, bringing awareness to the issue you’re fundraising for and to your organization. That’s a double-win for you!
4. Crowdfunding is passion-driven
People give towards a crowdfunding campaign because they see that the person or organization behind it is passionate, and the individual shares that passion. Luckily, non-profits are also passion-driven at their core—it’s not something that’s tacked on at the end as an afterthought.
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
 |  |  |
|---|---|---|
 |  |  |
[Breaking] SEC Votes to Approve Changes to Regulation Crowdfunding Increasing the Maximum Raise to $5 Million
Crowdfund Capital Advisors | Nov 2, 2020
Just a few minutes ago, at a Securities and Exchange Commission Hearing, the SEC approved amendments to facilitate capital formation and increase opportunities for investors by expanding access to capital for small and medium-sized businesses and entrepreneurs across the United States.
The vote was 3 to 2. SEC Chair Clayton said, “He's extremely pleased with the work done by the Commission. That the changes will modernize the exempt offering framework and have a lasting impact on our capital markets without detriment to investor protection."
See: European Crowdfunding Network Publishes Blockchain Study Analyzing Current Regulatory Environment
Some of the key Regulation Crowdfunding (aka Reg CF) changes include:
- Increasing the maximum a company can raise from $1.07 million to $5 million
- Amending the investment limits for investors in Regulation Crowdfunding offerings by:
- not applying any investment limits to accredited investors; and
- revising the calculation method for investment limits for non-accredited investors to allow them to rely on the greater of their annual income or net worth when calculating the limit on how much they can invest.
- Permitting issuers to “test-the-waters” prior to filing an offering document with the Commission.
- Permitting “demo day” communications that would not be deemed general solicitation or general advertising.
- Permitting the use of Special Purpose Vehicles to facilitate investing in Regulation Crowdfunding issuers
“We are thrilled that the Commission has finally increased the maximum issuers can raise under Regulation Crowdfunding,” say Sherwood Neiss, principal at Crowdfund Capital Advisors. “When we began lobbying for Reg CF, we artificially set a low maximum target of $1 million so that we could test the model and make sure there was no fraud. Under those limits, more than 2,800 companies in 430 industries, across 50 states have raised over $500 million dollars in just 4 years, with no fraud. The model is working incredibly well.”
See:
NCFA Response to CSA on NI 45-110 Harmonized Securities Crowdfunding Rules
NCFA Response to the Modernizing Ontario’s Capital Markets Consultation Taskforce
NCFA Open Letter: Government should collaborate with Fintechs
“A $5 million limit and other substantial regulatory changes will expand crowdfunding’s use rapidly. At $5 million, a tech startup can raise a seed round or a traditional small or mid-sized company can raise expansion capital. This will open significant new opportunities for businesses to use this capital to recover from the current economic crisis or launch innovative new products and services.” says Jason Best, Principal at Crowdfund Capital Advisors.
The vote comes at a time when local businesses and local economies across the USA are facing the most challenging economic crisis since the Great Recession. The third wave appears to be worse than the first two with many Americans bracing for another shut down like in other parts of the world. If this happens, millions of small businesses that were just scrapping by might permanently shut their doors leading to a housing crisis as unemployed people cannot pay their rent or mortgages.
There is a way to supercharge Regulation Crowdfunding and provide immediate, impactful stimulus to Main Street businesses that may not survive the pandemic. That is for the Federal Reserve to take $20 billion of the $596.3 billion they have remaining from the Main Street lending, PPP and EIDL programs and put it into the Main Street Recovery Co-Investment Fund.
This fund would match dollar for dollar, up to $250,000, into businesses that are struggling to survive the pandemic but have customers that wish to see these businesses survive. By turning these customers into investors (what we are calling investomers), the businesses access capital from customers who are now stakeholders in the business and the government can successfully deploy capital at the most micro level into communities all across the USA.
The good news is, many small business have already begun to see the potential in turning to their customers for capital to bridge the divide. The data shows that more companies are turning online to raise funds from investors, more investors are pouring in capital and more money is being raised.
Continue to the full report --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
| | |
|---|---|---|
| | |
European Crowdfunding Network Publishes Blockchain Study Analyzing Current Regulatory Environment
Crowdfund Insider | JD Alois | Nov 2, 2020
Following a big win at the European Commission in regards to the harmonization of investment crowdfunding rules, the European Crowdfunding Network (ECN) has published a report analyzing European blockchain regulation.
Crafted in partnership with the law firm of Denton’s, the ECN report reviews the European legal framework, including standards, policies, and directives, governing or related to distributed ledger technology (DLT)/ Blockchain solutions and applications.
See: Blockchain: legal and regulatory guidance report
The report notes that currently there is no legal framework pertaining to interoperability between EU Member States. However, on April 10, 2018, some EU Member States agreed to create the European Blockchain Partnership (EBP) and to establish a European Blockchain Services Infrastructure (EBSI) that seeks to support cross-border digital public services that incorporate high standards of security and privacy.
While the document states there are “no severe legislative gaps and regulatory needs within the existing legal framework of the EU regarding interoperability within the European Union, but given the expectation that DLT/Blockchain utilization will grow, there is a need for regulatory harmonization.
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
| | |
|---|---|---|
| | |
ASC Updates Raising Capital for Small Businesses Resource: Fostering Alberta’s New Economy
Alberta Securities Commission | Denise Weeres | Oct 29, 2020
ASC has just rolled out some new, plain language, Small Business web-content intended to help entrepreneurs and their advisors navigate the securities law requirements when raising capital through the sale of shares or other securities. It provides some key terms, frequently asked questions, overview of common capital raising exemptions, some tips and traps.
Many factors are impacting and changing Alberta’s capital market and economy. Efforts are being taken to strengthen and to help expand and diversify the Alberta economy. There are a multitude of parties engaged in these strengthening and diversification efforts. The Alberta Securities Commission (ASC) is Alberta’s securities regulator. We are responsible for protecting investors and fostering a fair and efficient capital market.
The ASC supports these economic efforts by ensuring appropriate securities regulation that protects investors, and fosters a vibrant capital market that facilitates access to capital by Alberta businesses and investment opportunities for Alberta investors. Our goal is to find the right balance of appropriately protecting investors without unduly burdening the businesses trying to raise capital to build and grow.
See: ASC adopts Start-up Crowdfunding Blanket Order
By engaging with market participants, ASC staff can better understand the challenges small businesses face in accessing capital.
The ASC’s various external advisory committees, including its New Economy Advisory Committee, help the ASC build connections in the community, obtain valuable insight from industry and explore how securities regulation can evolve to support economic diversification, while still providing appropriate investor protection.
Sources of Money
There are a variety of ways in which an entrepreneur may obtain the capital needed to operate their business, such as:
- their own savings and financial resources, often referred to as ‘bootstrapping’,
- relying on trade credit,
- loans from banks, credit union or other financial institutions,
- government grants or loans,
- investments by investors, whether through shares, loans, revenue sharing arrangements or the distribution of other securities.
As Alberta's securities regulator, the ASC’s focus is on the last method, raising money through the sale of securities.
If you are trading any of the broad array of products that constitute securities or derivatives, then securities law applies to you!
Resources and Education
- Small Business
- Raising Money by Selling Securities
- Key terms
- Frequently asked questions
- Going Public
- Intro to Raising Capital Using Prospectus Exemptions
- Common capital raising prospectus exemptions
- Considerations when investing
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
| | |
|---|---|---|
| | |
Retail investors are becoming more than shareholders
Andreeson Horowitz | | Oct 23, 2020
Historically, the definition of an investor has been almost entirely focused on the financial component: the flow of capital from those who have it to those who need it.
More recently, the venture capital model expanded the perception of what it means to be an investor. Startups now look for those with expertise, a strong brand, connections, and a slew of other resources, in addition to deep pockets.
Over the past decade, through the rise of alternative investments, fractional shares programs, and companies like Robinhood, it’s become easier for anyone to become an investor.
However in the public markets, retail investors are often still viewed solely as capital providers. Companies are unlikely to know who their retail investors are, much less engage with them.
See: European Union Approves New Crowdfunding Rules that Apply to Member States, Funding Cap Set at €5 Million
Hypothetically, let’s say you own shares in what we’ll call FintechCompany A. As a FintechCompany A shareholder, that likely means that you support the company’s vision, product, and leadership team and hope that it will succeed.
But as a retail investor, owning shares is about as deep as the relationship goes. Beyond that, your interactions with the company are limited: you probably don’t vote on board initiatives or provide input on new products or business strategies.
Now this, too, is changing: Companies are realizing the value of retail investors beyond their capital. Since these investors are financially married to the success of the company, they can be effective advocates in fostering brand loyalty and trust within their communities.
Today, more companies are finding ways to connect and engage with retail investors, parlaying that relationship (and community) into a competitive advantage.
What if instead of surveying random people on its next product launch or marketing campaign, FintechCompany A could ask you — a valued shareholder — to vote or offer an opinion?
What if you were rewarded for holding shares in FintechCompany A? What if you had your own referral code to encourage your friends’ businesses to choose FintechCompany A over FintechCompany B? Now instead of just giving the company capital, you’ve become a true asset.
See: KABN North America and BOON Rewards Set to Launch Cashback and Rewards Programs
Interestingly, giving investors rewards is not a new phenomenon. McDonald’s, for one, offers a free item voucher to every investor in its annual report, as do many other companies. A new app called Stockperks even compiles shareholder rewards offered by publicly traded companies into one centralized database.
But expanding this behavior beyond rewards — effectively turning retail investors into brand ambassadors — is a new development, with fintech companies at the helm.
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
| | |
|---|---|---|
| | |
European Union Approves New Crowdfunding Rules that Apply to Member States, Funding Cap Set at €5 Million
CrowdfundInsider | | Oct 6, 2020
Earlier today, the European Union approved crowdfunding rules that will apply to all member states thus finally offering a pan-European approach to online capital formation while removing much of the friction in the current ecosystem that suffers from regulatory fragmentation. Industry participants, along with industry associations, have long championed harmonized rules across the EU.
In a deal struck with the European Council last December pertaining to common rules for crowdfunding platforms, legislation was approved that will allow issuers the ability to raise up to €5 million during a 12 month period for the issuer. This amount is in contrast to €1 million that was previously proposed by the European Commission.
See:
What the European Crowdfunding Industry Recommends for Harmonized EU Rules
NCFA Response to CSA on NI 45-110 Harmonized Securities Crowdfunding Rules
NEW REPORT: Small Business SOS – It’s Time to Supercharge Local Crowdfunding to Unlock Needed Capital
The new rules seek to help crowdfunding services to function smoothly in the internal market and to foster cross-border business funding in the EU. The rules will apply to all European Crowdfunding Service Providers (ECSP). Investors will be provided with a “key investment information sheet” (KIIS) crafted by the issuer for each crowdfunding offer or at the platform level to maintain transparency and boost investor protection.
The objective is that crowdfunding service providers must provide investors with clear information about intrinsic risks and charges they may incur, including insolvency risks and project selection criteria.
Any ECSP must receive regulatory approval from the “national competent authority” (NCA) of the member state in which they are established to list securities offerings. ECSP’s will be able to compete across the European Union and provide cross-border crowdfunding services via a notification procedure.
Supervision will be carried out by national competition authorities and with the European Securities and Markets Authority (ESMA) coordinating cooperation between EU member states.
Crowdfund Insider spoke with Ronald Kleverlaan, a crowdfunding expert and Chairman of Stichting MKB Financiering & Director European Centre for Alternative Finance at Utrecht University, for feedback on the announcement. We asked him about the impact of harmonized rules for the European Union. Kleverlaan said this will have a very big impact on the European crowdfunding market:
“[This] is a very welcome step for crowdfunding to become one of the leading sources of funding for the startup and SME finance market in the next decade in Europe,” said Kleverlaan. “By providing a strong legal framework it will give more trust to entrepreneurs en investors and will also enable platforms to operate on a pan-European scale. The regulation will make it also easier for platforms to attract additional co-funding from institutional funders, such as the European Investment Fund, and co-funding from banks or other investors.”
“Unfortunately, cryptoassets are kept outside this regulation. There will be a separate legal framework about a framework for cryptocurrencies and cryptoassets,” Kleverlaan added.
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
| | |
|---|---|---|
| | |
UK Equity Crowdfunding platforms Crowdcube and Seedrs to merge
Yahoo News Release Crowdcube and Seedrs | Oscar Williams-Grut | Oct 5, 2020
The UK’s two biggest crowdfunding platforms have announced plans to merge.
Crowdcube and Seedrs said in a joint statement on Monday they had agreed the terms of a merger. The combined company will be worth £140m ($181.2m).
Crowdcube will acquire Seedrs under the terms, with Crowdcube’s shareholders owning 60% of the combined business. Seedrs investors will receive 40%, reflecting the differing valuations of the two companies. Crowdcube was last valued at £84m and Seedrs is worth £56m. The exact financial terms weren’t disclosed.
“Today’s agreement is an incredibly exciting milestone that will benefit high growth businesses, their investors who believe in their vision and the wider entrepreneurial ecosystem that supports them,” said Darren Westlake, Crowdcube’s founder and chief executive. “Together with Seedrs, we can accelerate plans to further expand in the UK and overseas, launch innovative new products and improve our customers’ experience.”
See:
Getting In Early: SEC Sees Growth In Equity Crowdfunding
What are the major sources of scale-up equity finance in the UK?
Crowdcube Founder Claims An Industry Tipping Point
NCFA Response to CSA on NI 45-110 Harmonized Securities Crowdfunding Rules
Ontario introduces interim registration and prospectus exemptions to facilitate start-up securities crowdfunding
Westlake will serve as executive chairman of the combined business. Seedrs chief executive Jeff Kelisky will serve as CEO.
“We believe that you need to be a player of greater scale to serve companies and the investors who support them,” Kelisky said in a statement. “Now is the right time to bring our strengths together, in order to meet our common mission to deliver a step change in the accessibility and efficiency within private company investing.”
The merger is subject to approval by shareholders in both companies, the UK’s Competition and Markets Authority, and the Financial Conduct Authority. The deal is expected to close either at the end of this year or early in 2021.
Continue to the full article --> here
Seedrs Chairman Update | Jeff Lynn | Oct 5, 2020
Why merge?
By joining forces, we’ll be able to harness the best of both companies as we accelerate our shared mission to create the world’s largest private equity marketplace. Together, we will help fund thousands of ambitious, fast-growth businesses and deliver exceptional returns to the investors who support them.
In turn, the merger will allow us to create a more robust company, and we will be able to achieve our shared mission faster and more effectively when we are united.
How will the merger be structured?
The merger will be structured as an acquisition by Crowdcube Limited of all of the outstanding share capital of Seedrs Limited via scheme of arrangement. Existing Crowdcube shareholders and option holders will own 60% of the combined company, and existing Seedrs shareholders and option holders will own 40% of the combined company. This merger ratio reflects the approximate valuations of the two companies based on each of their most recent fundraising rounds.
See:
Seedrs Founder Jeff Lynn: We are experiencing meaningfully higher levels of fundraising and investment activity than the same time last year
Setting up small and medium-size enterprises for restart and recovery
How the UK economy can survive the coronavirus
The transaction is subject to approval by, among others, the UK Competition and Markets Authority (CMA), the Financial Conduct Authority (FCA) and shareholders of the two companies, as well as the sanction of the Court. The transaction is expected to be completed in late 2020 or early 2021.
What will the company look like after the merger?
Following completion of the merger, Jeff Kelisky will serve as CEO of the combined company, Darren Westlake, Crowdcube’s CEO and co-founder, will serve as Executive Chairman, and the management team will include key leaders from both businesses. The companies will then work together to define how the two businesses will combine their teams, customers, brands, services and technologies.
Going forward, the combined company will aim to deliver new innovations and products that will make it significantly easier, more affordable and valuable for ambitious businesses to raise growth finance, and for investors to have an even greater selection of investment opportunities with richer investment tools.
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
| | |
|---|---|---|
| | |
