Estonian Equity Crowdfunding

Crowdfunding (as in Kickstarter, Indiegogo etc) has become mainstream. But this sort of crowdfunding only allows a debt based investment. In other words, when you support a project, you are buying something they offer. You are not buying any shares in the venture.

Is this a problem? Not in itself. But there may be reasons to set up a parallel equity crowdfunding system. First, it may provide a better way for some projects to get started, for example, when they don’t have anything yet to offer. Second, ti might also provide for more efficient exits for early stage investors — if the equity can be traded.

But there are legal hurdles to overcome. After the great depression, it was thought that small investors who don’t have sufficient knowledge needed more protection. So there are lots of limits on how such a market might work.

These hurdles are man made and therefore man can undo them or modify them. And it may happen. Estonia’s e residency cards may be a tool that allows us to take one step in that direction.

London Fintech and Transferwise

Living here in Estonia, I get a kick out of watching Transferwise grow. They have raised a ton of cash so far . nr 3 on the list. BI reports

3. TransferWise — the international money transfer company raised £37.4 million in January.

3. TransferWise — the international money transfer company raised £37.4 million in January.

TransferWise

TransferWise founders Taavet Hinrikus, left, and Kristo Kaarmann.

Investment: £37.4 million ($58 million), January.

Who invested: Andreessen Horowitz, Valar Ventures, Index Ventures, Seedcamp.

Company value: £640 million ($1 billion).

What it does: An international money transfer platform that uses elements of peer-to-peer to match you with users sending money in the opposite direction. The platform is transferring £500 million ($775 million) a month and has transferred £3 billion ($4.6 billion) to date.

 

The World of Fintech

Financial institutions are ripe for disruption. Like the institutions that oversaw the music industry, they are too much acting like gatekeepers and not enough competing to offer new and better services using technology. Welcome to the world of fintech. That is their montra. Here is a peek into the thoughts of four fintech entrepreneurs.

Whether these guys make it or not, they represent a much larger group of folks who are likely to revolutionize finance.