The Finnish Ministry of Finance has published a report addressing the emerging crowdfunding industry and it’s impact on Finland. The document was authored by Aki Kallio and Vatteri Vento at the Ministry. The report includes a small, high level survey from respondents involved in the industry. Finland is a relatively small economy and correspondingly crowdfunding is generating a small amount of revenue estimated at EUR 2 Million for 2013. Finland is part of the increasing number of countries (45) where crowdfunding services have emerged. The authors clearly understand the potential of the diverse crowdfunding sectors including; Donations / Rewards, Peer to Peer (P2P) and equity based crowdfunding.
In brief the Kallio and Vento conclude:
- Regulation of the sector should be kept light
- The sector must develop self-regulation and good practices
- The new industry needs guidelines including eduction
- The public needs to become better informed
- Authorities should consider registration for operators
- Regulatory authority must seek clarity
- A functional secondary market will support development – specifically for equity crowdfunding
- Crowdfunding should be more effectively accounted for in the Money Collection Act
For industry participants in the US and elsewhere this is a very well thought out, concise report that merits reading. The authors have gone out of their way to look beyond their borders in seeking an efficient and beneficial approach to encourage this innovative industry.
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