#slow equity

I read an article yesterday in the leading Swedish business paper.  The key in this article was that Investors (mainly large investment companies and Institutional investors) should look upon the value of the investment not purely from a financial point of view. The investment should also create value for the society. The question is whether this in a short-term perspective will help the world economy to recover and get energized. I like the trend and I think it´s here to stay.

I hope that this “value perspective” will be part of the strategy of many Investors. I am sure that it will give the society a stronger financial system and a more sustainable business environment. Those Investors adapting this strategy will most likely, in the longer perspective, be able to attract more capital and be more profitable.

To optimize the benefit for the society in connection with investments I think that Crowd Funding is a fantastic opportunity that we cannot afford to ignore. With Crowd Funding it is possible to create a close and active link between consumers and companies/entrepreneurs. This link will create financially stronger companies and more vibrant communities as the consumers will be more interested in supporting these companies/entrepreneurs. The other thing that will be difficult for the Institutional investors to pick up is the concept of Slow Equity.

Whatever is on the macro level I think that the foundation of a new financial environment has to start with Crowd Funding. Changing the mind of the mass will most likely change the way the institutions invest in the future. Connecting the money, the benefit and the crowd is the core heart of energizing our economy and make people aware and responsible. It is now time for the government to take a more active role in the development of Crowd Funding and give Crowd Funding a chance to exist along with other initiatives that are sponsored by our government. 

I read an article today in the leading Swedish business paper.  The key in this article was that Investors (mainly large investment institutions and pension funds) should look upon the value of the investment not purely from a financial point of view. The investment should also create value for the society. The question is whether this in a short-term perspective will help the world economy to recover and get energized. I like the trend and I think it´s here to stay.

I hope that this “value perspective” will be part of the strategy of many Investors as I am sure that it will give the society a stronger financial system and a more sustainable society. Those Investors adapting this strategy will most likely be able to attract more capital and be more profitable.

To optimize the benefit for the society in connection with investments I think that Crowd Funding is the best solution at the moment. With Crowd Funding it is possible to create a close and active link between consumers and companies. This link will create financially stronger companies and more vibrant communities. The other thing that the macro perspective hasn´t picked up is the concept of Slow Equity. Without Slow Equity I think that large investment institutions and pension funds in a few years ahead will be back in the fast track of more conventional investments strategies.

Whatever is on the macro level I think that the foundation of a new financial environment has to start with Crowd Funding. Changing the mind of the mass will change the way the institutions invest in the future. If we start demanding that our pension funds should be invested in something that will benefit the (local or national perspective) society it will create a stronger society. This will not necessarily mean that the investment is less profitable. Connecting the money, the benefit and the crowd is the core heart of energizing our economy. The government has to take a more active role in the development of Crowd Funding and give Crowd Funding a chance to exist along with all the other initiatives that are sponsored by the government.  

We have now received state funding from several state agencies giving us the necessary resources to speed up education of people in Crowd Funding and to market the great potential and benefits using Crowd Equity as a basis to capitalize smaller companies. The word has spread and the politicians have now shown an interest in our platform. It would of course be a fantastic combination if state funding of small companies could be combined with equity from the crowd. Another alternative route that would give crowd equity a boost as well is a tax deduction for investment in companies being financed with Crowd Equity. We hope that the politicians will see the benefit with crowd equity and begin to transform the opportunities into real value for the society. From a macro perspective the crowd equity platform will give the state a better and more precise instrument for funding companies. The financial risk for the state will decrease as a result of the loyalty the crowd will build around these companies as new customers of the services and/or goods provided.

In turbulent times as this it is vital to find and try new solutions in order to kick-start the gloomy economy. We hope that the government in Sweden will be leading the progress towards more vital economies. We will meet with the Minister of Rural Affairs this week and will be on the same panel as the Minister of Enterprise in the beginning of February. We hope will get their attention and that we with a joint effort can take Crowd Equity one-step further. 2012 will be an interesting year for Crowd Equity and we hope to introduce our platform in Portugal, Greece and France.

After five fantastic days in San Francisco attending the Crowd Funding Conference my brain is going warm about the crowd sourcing method and thinking. The crowd participating in the conference were a mix of people in their early twenties and the late sixties. The concept is young and Internet based but is for sure in line with the mentality of many. Who wants to sign up for a multinational when you can work in a community anywhere in the world with qualified assignments and great challenges! The only thing you need is an Internet connection and a computer. I am sure that the crowd-sourcing concept will change the way people will work in the future and how we are going to speed up the working process by involving thousands. Even if there are a lot of questions and unsolved issues attached to crowd sourcing today it's a movement that is going to stay.

The one thing that made us really happy attending the conference was the insight that our Swedish Crowd Funding model with Slow Equity is one of the most advanced platforms in the world (if not the most advanced).

After five fantastic days in San Francisco attending the Crowd Funding Conference my brain is going warm about the crowd sourcing method and thinking. The crowd participating in the conference were a mix of people in their early twenties and the late sixties. The concept is young and Internet based but is for sure in line with the mentality of many. Who wants to sign up for a multinational when you can work in a community anywhere in the world with qualified assignments and great challenges! The only thing you need is an Internet connection and a computer. I am sure that the crowd-sourcing concept will change the way people will work in the future and how we are going to speed up the working process by involving thousands. Even if there are a lot of questions and unsolved issues attached to crowd sourcing today it's a movement that is going to stay.

The one thing that made us really happy attending the conference was the insight that our Swedish Crowd Funding model with Slow Equity is one of the most advanced platforms in the world (if not the most advanced).

A wave of generosity from the super rich has spread all over the world during this turmoil. This is a good sign and a generous gesture from a few but it will not lead to a major change in the way the financial system works (or rather the way it doesn’t work).  The answer to a working financial system as the base to a healthier economy involves every individual along with the government and the private sector.

This kind of answer has to be based on a transparent system with instant communication capabilities and the ability to promote individual choices.

An embryo of such a system is a model that goes under the name “Crowd Equity Funding”. This most interesting financial model provides a platform for injecting equity to start ups and small companies. Allowing these companies access to funding from a pool of many supporters, promotes active guidance into the needs of the market, energizes the business environment and creates new job opportunities.

In the process of developing a platform for Crowd Equity we realized that the society is in desperate need to come up with new venture capital models that can support our small and micro companies with equity. In the fast moving economy with high-yield financial instruments and short-term profit small and micro companies are not of major interest for traditional investors. We believe that our entrepreneurs need to work under fair and predictable financial conditions so that their brilliant minds can thrive and their businesses can turn into great companies. Time is key to success!

Our crowd equity model is an integrated part of a financial ecosystem designed for small and micro companies. We have created a viable, transparent and a “slow” financial platform with no short term profit requirements. To find investors that are willing to sacrifice short term profit for the benefit of hungry and risk averse entrepreneurs you need to come up with something else than high ROI – so we created a financial ecosystem which brought the crowd closer to the entrepreneurs and the entrepreneurs to the crowd. The ecosystem is based on strong interest links between the crowd, entrepreneurs and the society in general. The interest could be for local activities, for specific innovations, for minority groups etc. These links of interest encourage the crowd to consume the products or services of the entrepreneurs, the entrepreneurs to make profit and pay tax and it also builds a foundation for social responsibility. In this financial ecosystem the investors will not get their capital back unless the entrepreneur makes profit.

Slow Equity for us is a risk capital model for small and micro companies under which equity can be obtained from the crowd and paid back over time when the company is profitable.

Crowd Funding is in essence the matching of funds from the Crowd to entrepreneurs, artists and others. The latest trend within the Crowd Funding movement is the creation of venture capital models, “Crowd Equity Funding”, with a potential upside for the Crowd. Regardless the upside, the driving force behind Crowd Funding still remains the same, i.e. a small amount of money from many people could make the difference and it feels good to be part of a responsible and active community.

Taking the Crowd Equity Funding model to a local level (in contrast to national level) will promote the production of goods and services needed by the local community and to an extend will increase consumption, as the customer base will be more dedicated as a consequence of the investment structure. Crowd Funding is not only about commercial expectations but also about the need to invest in the local business environment that will increase the availability of goods and services needed in the area and potentially create growth.