Crowdfunding for SME

I performed a presentation about « Crowdfunding for SME » (Small and Medium Enterprise) at the EFMA Retail Credit Conference, 20-21 june 2013 in Amsterdam.

I have shared it on slideshare (see below)

 

My main conclusions :

  • Crowdfunding is a very attractive service with a high level of involvement, interaction and virality from client and very differenciated from traditional financial products
  • Non financial involvements are also important and interesting than funding (you can build crowdfunding service without funding or with a traditional funding separated from crowdfunding)
  • There are multiple models of crowdfunding mainly determined by the project amount requested and the average funder amount (« ticket ») defining 2 kinds of community (Ad hoc community (Social Media) vs  recurrent structured funding community)
  • Regulation is an issue but not a problem (except if you are a bank with a one to one relationship with the regulator)
  • Crowdfunding is much more complementary than competition for traditional bank
    • bank underserved segments
    • can be « packaged » to be retailed by traditional banks
  • Best way for a bank to enter into crowdfunding is partnership with startups or domain specialists « because it’s complicated » and to speed learning curve.
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