With the demand for capital for startups growing and traditional sources of funding, such as banks, venture funding and angels limited, Denmark is looking to boost crowdfunding as a more efficient source of funds for businesses. To help advocate on behalf of the growing crowdfunding industry, the Danish Crowdfunding Association has been launched by two entrepreneurs.
Michael Eis, founder of booomerang.dk and equity crowdfunding platform CrowdInvest.dk, along with Frederik Ploug Søgaard, founder of FinanceLab and MarketingLab, have created the association with the stated objectives: startup companies should be allowed to offer shares, advocacy of the creation of a tax incentives similar to the UK (SEIS, EIS), requirements for securities dealers should be made easier, and the rules for pension funds investing in startups should be altered.
The Danish Crowdfunding Association will actively engage entrepreneurs and investors who see crowdfunding as the evolution for capital formation for small companies. The association also sees themselves as a path for growing the industry and educating the masses about the benefits of crowdfunding.
Over 18000 new businesses started in Denmark in 2014 but the countries unemployment rate has barely budged over the last few years. The current government plan is to create 180,000 jobs through 2020. The founders of the Danish Crowdfunding Association believe crowdfunding can shift this paradigm.
The not for profit association just registered their group this past fall and are still working on setting up their web site. Already some politicians are taking notice in the nascent group. In a recent article it was stated that representatives were engaging with the founders in order to facilitate equity crowdfunding in Denmark. With the successes in surrounding countries such as the UK and other European countries the leaders in Denmark have plenty of examples of how to facilitate this new innovative form of financing small companies.
