The Prospects of Crowdfunding – The case of Go Incubation Board for Startup and Acceleration Firms (GISA)
Date Issued
2015
Date
2015
Author(s)
Huang, Yu-Chuan
Abstract
The tendency of Internet financing is apparent nowadays. In the era of rapid development of the Internet, people''s consumption patterns and habits change along with the Internet generation tremendously, not only for on-line shopping, but also for internet financing. For instance, PayPal Asset Management Inc set up a money market fund in 1999; the pioneered Peer-to-Peer Lending website (social lending ) originated in the United Kingdom Zopa began operating in 2005; the first US peer to peer lending company Prosper was founded in 2006; Chinese mainland Ali small loan company was established in 2010 to support small businesses and entrepreneurs to meet their expanding business financing needs. Crowdfunding, as part of internet financing, grows rapidly with four main business models, donation-based, rewards-based, debt or loans-based and equity-based Crowdfunding. US JOBS Act 2012 is the landmark of the whole development. Followed by US JOBS Act, UK FCA (Financial Conduct Authority) finalized the regulatory approach to crowdfunding over the internet in 2013, while Taiwan set Regulations Governing the Go Incubation Board for Startup and Acceleration (GISA) Firms for crowdfunding in the island in 2014. This article will introduce relevant crowdfunding laws in the above countries, contents of the main four business models, and future development within three players, the fundraisers, the sponsors, and the platforms. The main focus of the US JOBS Act, or laws set by Taiwan, UK, or EU is mainly to protect sponsors. The investment risk of Equity-typed crowdfunding, due to micro-industries as the main investment targets, is quite high, compared to other investment vehicles. Amount of fundraisers raised through crowdfunding platform has been restricted. Qualification and investment limitation of non-professional investors and professional investors to invest are also set in the regulations. Crowdfunding platforms, not just platforms, shall take responsibility in supervising the proposal contents by fundraisers and how they have been executed. The EU even includes detailed items of ""Know your Customer"" for platforms to review the fundraisers and sponsors. Similar to the other products or industries, the new business grows rapidly at this moment. The fund raised in 2014 achieves USD 10 billion. Kickstarters, Seeders and Crowdfunder, FlyingV and GISA in Taiwan are main platforms. These platforms bring successful campaigns such as US Pebble Watch, Taiwan Zeppelin''s ""see Taiwan"" premiere, and etc. With the finalization of national laws, developing countries have quietly emerged crowdfunding platform. Crowdfunding is very suitable for the development of national agriculture, forestry, fisheries, animal husbandry in developing countries. Africa appears to help a fertilizer company by a crowdfunding campaign. Crowdfunding is definitely a new main trend for society development. It is very exciting to see global crowdfunding and intrastate crowdfunding expanding at a fast and successful rate. It is also expected to introduce more flexible legislation to lead the growth.
Subjects
Crowdfunding
JOBS
EGC
FlyingV
Kickstarter
Crowdfunder
Type
thesis
File(s)![Thumbnail Image]()
Loading...
Name
ntu-104-P01745019-1.pdf
Size
23.32 KB
Format
Adobe PDF
Checksum
(MD5):83d73cba9016ca992d9f5552470a99ad