Global fintech and funding innovation ecosystem

UK Government Ups Crowdfunding without Prospectus to €8 Million – Matching Germany

Crowdfund Insider | | Jul 2, 2018

UK - UK Government Ups Crowdfunding without Prospectus to €8 Million – Matching GermanyIn a significant policy move by the UK government, the threshold for investment crowdfunding has been upped to €8 million thus matching the recent change by Germany which announced the same funding limit. This increase is due to a change in the Prospectus Directive.

In the UK, there is no limit on how much a crowdfunding platform may raise online. But a rule requiring a full blown prospectus at €5 million has, in effect, created a significant speed bump for investment crowdfunding platforms – one that has rarely been breached due to the cost of creating and complying with a prospectus requirement.

The change announced today, should have an important impact on UK crowdfunding platforms as it will help make the online capital formation industry far more viable as issuers seek larger funding amounts raised via the issuance of securities online. In the early days of UK crowdfunding most issuers raised smaller seed round amounts. Today, issuers span a far wider range of funding requirements from seed stage to scale up. Frequently, these offerings are done in partnership with professional investors such as VCs or experienced angels.

See: 

The industry leadership organization, the UK Crowdfunding Association (UKCFA), welcomed the UK government’s decision to change the rule – a change that becomes actionable almost immediately – on July 21st.

Investment crowdfunding platforms, both debt and equity, have been increasing the scale and scope of investment offers with many platforms already consistently raising the maximum €5 million for SME’s and infrastructure projects in the UK. The extension is said to enable a new age of crowdfunding for larger businesses and tackle more significant infrastructure projects in a diverse sector of industry.

A spokesperson for the UKCFA shared a statement with CI:

“Our members are already working now on investment offers which could take advantage of this opportunity for larger, more efficient capital raising through investment based crowdfunding without compromising on levels of due diligence. The economics of the previous threshold no longer added up, creating a distortion in the market which has now been addressed. This means that a new sector of ‘scale up’ businesses will be able to benefit from the option of choosing crowdfunding as a route to funding their growth and success.  It also helps maintain the UK’s competitive position as a great place to start and scale a business.”

Continue to the full article --> here


Click for News:

latest news - UK Government Ups Crowdfunding without Prospectus to €8 Million – Matching Germany

 

Policy | Feb 28, 2024 FCA Consultation on Strategic Shift in Enforcement Case Transparency The FCA plans to be more open about its enforcement investigations. This includes publishing updates on ongoing investigations and disclosing when cases are closed without enforcement action.  The decision to announce an investigation will be made on a case-by-case basis, considering factors such as the potential impact on the UK financial system's integrity, public reassurance, and the assistance in any investigations.  Previously, such announcements were made under very limited circumstances.  Read the consultation paper. Increased transparency is expected to enhance public confidence and demonstrate the FCA's proactive enforcement stance. It also aims to deter potential misconduct by making firms aware of the serious failings that could lead to an investigation, encouraging quicker behavioral adjustments.  This new approach is anticipated to drive greater accountability for the FCA as an enforcement agency and enable the use of intervention powers to prevent harm in real-time. See:  FCA Highlights Common Issues in Crypto Marketing Therese Chambers, Joint ED Enforcement at the FCA (related announcement): "By being more transparent when we open and close cases we can enhance public confidence by showing that we are on the case.  At the same ...
Freepik rawpixel.com policy - UK Government Ups Crowdfunding without Prospectus to €8 Million – Matching Germany
Philanthropy | Feb 28, 2024 Drive Change: Support Tech4SickKids Now We're helping rally innovators, influencers, and drivers of change—to join Tech4SickKids in a monumental challenge: raising $25 million to revolutionize SickKids with big-data solutions and a state-of-the-art hospital. This initiative isn't just about building walls; it's about breaking down barriers to the limitless possibilities of AI and modern medicine. See:  Bill Gates Announces $20 Billion Donation and Obligation to Return His Resources to Society By aligning with Tech4SickKids, you join a community of forward-thinking entrepreneurs who understand that true success comes from making a positive impact on the world. This is your chance to leave a philanthropic legacy that transcends your business achievements, demonstrating the powerful role that entrepreneurs can play in solving real-world problems. How You Can Join the Movement Donate: Every gift, whether one-time or monthly, fuels the fight. Your donation today is an investment in the future of pediatric care. Pledge Your Support: Through the Upside Foundation, tech founders can make a lasting impact by donating 1% of their company's equity at the time of sale or IPO. It's a simple way to give back that grows with your success. See:  Giving block reports, Crypto philanthropy jumped ...
Tech4SickKids You can change the world - UK Government Ups Crowdfunding without Prospectus to €8 Million – Matching Germany
Feb 28, 2024 Navigating International Travel Insurance: Key Considerations for Global Entrepreneurs As the world gradually recovers from the pandemic, travel insurance has evolved into a fundamental necessity for Canadians looking forward to their next trip. As a matter of fact, a recent study by Allianz Global Assistance highlights this shift in perspective, with 89% of Canadians indicating they plan to purchase travel insurance for future travels. Furthermore, 74% believe that having travel insurance is as important, if not more so, after the pandemic, with 32% considering it more vital than before. For businesses engaging in international activities, this increased attention to travel insurance is particularly relevant. As global travel picks up, ensuring the safety and security of individuals representing their organizations during travel is paramount. This is where international travel insurance comes into play, offering customized protection against the unique challenges faced by global entrepreneurs. In this beginner's guide, we aim to simplify the complexities surrounding international travel insurance for entrepreneurs so that you can confidently navigate the intricacies of international travel, knowing you have taken the necessary steps to protect your ventures abroad. Understanding Essential Coverage Options Before diving into the details, it's important to grasp the essential ...
Freepik tonodiaz Businessman walking with luggage - UK Government Ups Crowdfunding without Prospectus to €8 Million – Matching Germany
Cybersecurity | Feb 28, 2024 Comparing U.S. SEC and Canadian Cybersecurity Regulations for Businesses The introduction of new SEC cybersecurity rules in 2023 has further highlightetd the importance of board involvement in cybersecurity oversight. Skadden, Arps, Slate, Meagher & Flom LLP wrote an informative article on emerging expectations for public companies in the U.S. Below we compare at a high level the new SEC rules with the Canadian regulatory landscape including implications for startups and scaleups. United States The SEC mandates that public companies report material cybersecurity incidents within four business days of determining their materiality.  Prompt disclosure fullstop. See:  OSFI’s New Security and Integrity Guideline 2024 Companies are required to disclose their processes for identifying, assessing, and managing cybersecurity risks in their annual reports, including the board's oversight role. There's a strong emphasis on the board's active engagement in cybersecurity oversight, with specific requirements for documenting the board's oversight of cybersecurity risks. Canada The Canadian Securities Administrators (CSA) issued guidelines in December 2023 rather than strict rules for cybersecurity disclosures. These guidelines encourage companies to disclose material cybersecurity risks and incidents but do not specify a strict timeline for disclosure like the SEC's four-business-day requirement. Canadian regulations tend to ...
Freepik DC Studio Cybersecurity - UK Government Ups Crowdfunding without Prospectus to €8 Million – Matching Germany
Feb 28, 2024 Casinos have long held a mystique, conjuring images of opulence, risk, and the tantalizing possibility of outsmarting the system. This article explores the fascinating realm of casino culture to answer the question that has intrigued countless gamblers and enthusiasts alike: Can You Cheat In Casinos? Before we start, it's essential to acknowledge the allure and fascination that casinos hold for people around the world. From the iconic scenes of James Bond gracefully maneuvering through high-stakes games to the suspense-filled moments in classic heist films like Ocean's Eleven, the portrayal of casinos in popular culture has undeniably contributed to the mystique that surrounds them. These depictions often blur the lines between reality and fiction, and it's time to separate fact from fantasy. In this vein of exploration, games like the Valley Of The Gods Demo offer a glimpse into the modern casino experience, blending the thrill of gaming with the enchantment of mythology themes, demonstrating how far casino technology has come. Our mission is clear: to shed light on the myths and realities of cheating in casinos. What methods are believed to be employed by cunning gamblers to outwit the house? How do casinos safeguard their interests? What ...
Pixabay diegobarruffa Dice - UK Government Ups Crowdfunding without Prospectus to €8 Million – Matching Germany
News | Feb 27, 2024 Ottawa Cancels Digital Upgrade Program Prematurely, Leaving Billions Unspent The Canadian government has unexpectedly terminated the majority of the Canada Digital Adoption Program (CDAP), a $4 billion initiative aimed at assisting 160,000 small businesses in enhancing their digital capabilities. Despite being a central component of the government's post-COVID-19 recovery plan for businesses, the program saw a premature end due to a significant portion of the funds remaining unspent. This decision has sparked discussions among entrepreneurs, business groups, and industry experts about the program's accessibility, its impact on the digital consultancy sector, and the future of digital adoption in Canada. Problems?  Complicated Program, Capacity Issues, and Unmet Goals Why does the CDAP website say "Boost Your Business Technology grant is fully subscribed"(?) when the Globe and Mail reported that the program closed prematurely has billions in unspent funding for small businesses? Entrepreneurs and business groups labeled the program as confusing and complicated, leading to a far lower than expected participation rate. As of its early termination, over 20,000 microgrants and 21,000 business-plan grants were awarded, totaling $274 million in support, alongside nearly 5,000 businesses receiving $280 million in loans from the Business Development Bank of Canada ...
CDAP closed - UK Government Ups Crowdfunding without Prospectus to €8 Million – Matching Germany
Feb 27, 2024 Steady cash flow is essential for all businesses, established or startups. Without enough cash on hand, you may struggle to cover operating expenses, invest in growth, or take advantage of new opportunities. When in need of financing, many business owners turn to business loans to boost their working capital. These loans provide the finances they need to smooth out cash flow fluctuations, finance large purchases or projects, and consolidate high-interest debt. This article explores how you can strategically leverage business loans to improve your cash flow situation. Read on!  1.  Understand Your Cash Flow Needs As a business owner, you must understand your cash flow needs before considering any loans. Analyze your monthly cash flow statement to reveal when you have the most cash coming in versus when you have significant outgoing expenses. This cash flow cycle likely has highs and lows at different times of the month or quarter. Identify if there are periods where a quick influx of funds from a short-term loan could help ease the pressure of temporary low cash flow and propel you into a favorable position again. During these periods, consider exploring services from Credibly or other financial providers providing small ...
AdobeStock 189748797 Small Business Loan - UK Government Ups Crowdfunding without Prospectus to €8 Million – Matching Germany
Report | Feb 27, 2024 Impact of Investment Crowdfunding: Insights from the 2024 Trends Report Crowdfund Capital Advisors just opened up complimentary access to the "Investment Crowdfunding Trends 2024" report, a comprehensive analysis leveraging data up to December 31, 2023, offering invaluable insights into RegCF markets in the U.S., trends, and impact on the economy, business, and investors.  The article below is a snapshot of living markets.  Download the data-driven report to stay informed and learn the financing and investment opportunities in regulation crowdfunding markets to see if it's right for your portfolio or business. Overview of Investment Crowdfunding (up to Dec 2023) Investment crowdfunding has emerged as a transformative force, redefining access to capital and igniting economic growth. See:  Neiss Advocates for Economic Growth via H.R. 2799 Issuers/Deals: Over 6,800 issuers with more than 8,000 deals Cities across the United States: Participation from over 1,800 cities Funded Capital: $2.2 billion Investors: More than 1.9 million Jobs Created: Approximately 310,000 Economic Stimulus: $6.8 billion annually Enterprise Value: $75.6 billion Compound Annual Growth Rate (CAGR): 59% Platform-Specific Insights Investor Count by Platform: The top 3 platforms receive most of the industry’s checks written Average Check Size by Platform: Fundify has the ...
CCA Regulated Investment Crowdfunding Trends Report 2024 - UK Government Ups Crowdfunding without Prospectus to €8 Million – Matching Germany
Funding | Feb 27, 2024 Helcim secures $27 million CAD in Series B to expand payment processing for underserved SMBs Calgary-based FinTech startup Helcim has recently closed $27 million CAD ($20 million USD) in Series B financing to address the complex and often expensive landscape of payment processing for SMBs.  The Series B financing was led by Headline, with participation from new investors Clocktower Ventures, Vesey Ventures, and SilverCircle, alongside returning investors Information Venture Partners and Aquiline Technology Growth. The Series B funding will be used to accelerate product development, focusing on enhancing omnichannel distribution channels and adding new payment, software, and financing capabilities.  The funding round was not just about securing capital but also about finding partners who believe in Helcim's vision, team, and the culture they are building. See:  BoC Consultation: Draft Supervisory Guidelines for PSPs Founded in 2008, Helcim provides a comprehensive suite of payment solutions targeting traditional SMBs, including retail merchants, auto-repair shops, and healthcare clinics.  The company aims to fill a crucial gap for Main Street businesses by offering digital-first tools, more affordable payments, and exceptional customer support. This investment follows a $16 million Series A funding round in March 2022, showcasing Helcim's continued growth ...
Image Helcim blog - UK Government Ups Crowdfunding without Prospectus to €8 Million – Matching Germany
News | Feb 27, 2024 Republican senators have once again introduced a bill aimed at prohibiting the Federal Reserve from issuing a Central Bank Digital Currency (CBDC) in the United States, citing privacy intrusions. Titled "The CBDC Anti-Surveillance State Act," the bill reflects deep concerns over privacy and the potential for government overreach into citizens' financial transactions. There is a growing political divide over digital currency policy and its implications for personal freedom and national sovereignty. See:  CBDCs in Canada and Impact Drivers on Banking Choices Spearheaded by Sen. Ted Cruz (R-Texas) and supported by Sens. Bill Hagerty (R-Tenn.), Rick Scott (R-Fla.), Ted Budd (R-N.C.), and Mike Braun (R-Ind.), the legislation marks another attempt by Republican lawmakers to halt the progress of a CBDC in the U.S., citing threats to privacy and freedom. The bill emerges against a backdrop of heightened political rhetoric, with the Biden administration accused of seeking to infringe on citizens' privacy through the surveillance of personal spending habits. The Federal Reserve, currently in the basic research phase regarding a CBDC, has stated it would not proceed without authorization from Congress and the White House. The debate over a CBDC has become a campaign talking point, with ...
CBDC debate at capital hill financial privacy - UK Government Ups Crowdfunding without Prospectus to €8 Million – Matching Germany

 


NCFA Jan 2018 resize - UK Government Ups Crowdfunding without Prospectus to €8 Million – Matching GermanyThe National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with cryptocurrency, blockchain, crowdfunding, alternative finance, fintech, P2P, ICO, STO, and online investing stakeholders globally. NCFA Canada provides education, research, industry stewardship, services, and networking opportunities to thousands of members and subscribers and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding and fintech industry. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: ncfacanada.org

Leave a Reply

Your email address will not be published. Required fields are marked *

5 × 5 =