Hello again, dear readers,
Thank you for reading this post, don't forget to subscribe!As I pen down these words, I find myself a tad nostalgic and immensely proud. Come Tuesday, I’ll be accompanying my daughter to university in the UK. I’m originally from London, a diverse and vibrant city based on tradition whilst being at the bleeding edge of change. My recent experience at the London Tech Week, as part of the Alberta delegation, reinforced this feeling. The British approach to business, coupled with their open embrace of crowdfunding, left me marvelling at the international contours of the crowdfunding landscape. Let me explain.
Crowdfunding Across Borders: Why Geography Matters
Crowdfunding, in many ways, is a global dance. Just as my personal and business worlds straddle continents, from the UK to North America, so does the expansive realm of crowdfunding. But let’s get one thing straight – not all crowdfunding platforms or campaigns are created equal, especially when we draw geographic lines.
Donations and Rewards Campaigns: Casting a Wider Net
Platforms like Kickstarter, Crowdfundr, and Indiegogo allow creators from numerous countries (Kickstarter from 22 countries, Crowdfundr with its growing global presence, and Indiegogo from over 200) to run campaigns. What’s more? These platforms accept funds from virtually anywhere in the world. It’s a digital melting pot of ideas and backers.
Equity Crowdfunding: Navigating Regulations
Now, equity crowdfunding is a different beast altogether. In North America, it’s firmly tethered to the regulatory landscapes of individual countries. The U.S. and Canada, though neighbours, have their distinct sets of rules.
Europe has its own story. Platforms like Crowdcube are a testament to the continent’s intricate dance between maintaining high regulation standards and fostering cross-border investments. For instance, Crowdcube allows investors from a whopping 94 countries. Remember the HerRoomies campaign run by our sister company, Bennett Milner Williams Consulting? The diversity of backers was staggering. It seemed the campaign’s message and purpose had a universal resonance, effortlessly blurring borders.
Asset-based Dilemma: Where Should You Anchor Your Campaign?
Your campaign’s location is typically tethered to where the company’s value resides. Here’s a food-for-thought: Creating a U.S. subsidiary to raise funds in the UK doesn’t quite hit the mark if the assets aren’t grounded in the U.S. Why, you ask? Platforms are keen on ensuring that investors enjoy the fruits of the company’s growth and ownership of assets. A mere change in geographical tag won’t pass the meticulous eyes of due diligence.
Choosing Your Campaign’s Home: Three Tips to Guide You
- Identify Your Core Audience: Where does your primary audience reside? Pinpointing this can guide you toward the right geography for your campaign.
- Understand the Regulatory Landscape: Get familiar with crowdfunding regulations in your target geography. It saves you from future headaches.
- Asset Clarity: Make sure the value and assets of your company align with the geography you choose. Remember, authenticity and transparency are paramount.
I cherish my British sojourns and proudly wear my North American business hat, I’ve come to appreciate the intricate tapestry of crowdfunding. It’s not just about funds; it’s about finding the right stage for your grand show in the right geography.
Until next time,
Victoria