A new survey shows that crowdfunding regulations are being rejected by the majority of users. 186 users of crowdinvesting platforms, such as startnext, were interviewed.
New rules for crowd investing
The Federal Cabinet has recently adopted a new retail investor protection law, so that the financing of start–ups and projects via the Internet is supposedly more transparent. Thus, individual investors may only invest up to 1000 euros without further notice. For a higher sum, proof of income must be presented and an information sheet filled out that must be sent to the crowdinvesting platform. In turn, the project developers are only allowed to call and advertise their investment for a limited amount of money for their start–ups. These are rules that meet with the user’s displeasure.
The results of the survey
The flash poll is clear. 90% of respondents think the projects on the crowd investing platforms are very transparent and say that it is more than clear what money is spent on. 62% even think that they are better informed than with traditional investments. Only 8% demand more transparency and information. Nevertheless, all respondents are aware of the risk of loss of investment, there is no complete assurance that a project will bear fruit.
As regards the new rules, 74% have refused to disclose their investments. Every second person (48%) thinks this is too time–consuming. 12% would be willing to invest more than 1000 euros, but do not want to drown in bureaucracy.
Will Crowdinvesting Now Step Backward?
The results of the survey suggest that crowdfunding will become unattractive if the retail investor protection law does not make any exceptions to such platforms. It would be increasingly difficult to find investors because no one wants to deal with these rules. Crowdinvesting would become a slow, bureaucratic process that would deny the phenomenon of new media the nature of digital change. Because it is exactly this simplicity, with just a few clicks to financially support great projects, that makes polarizing and crowdinvesting interesting and exciting. Therefore, Bundestag and Bundesrat are now called to stop these superfluous regulations.
Further contributions to the topic
> Tech companies versus banks
> Study: The Future of Banks 2020
> Online banking: EU countries in comparison
> Ten theses on the digitization of finance
Tags: crowdinvesting, reputation, trust
About Claudia Hilker
Claudia Hilker Claudia Hilker is a management consultant for digital marketing communication and advises companies on strategy development with full–service. Qualified employees ensure the professional implementation of the measures. Claudia Hilker gives management workshops, trains leaders in digital leadership and is a speaker. She writes marketing books and blogs about marketing communication, social media marketing, financial marketing and digital leadership. She has teaching assignments and writes a dissertation on social media. Follow me on Twitter and Google+, become a Facebook fan. Connect with me on Xing and LinkedIn and subscribe to the newsletter.