In 2015, Crowdfunding in Sweden after leaving its niche from being somewhere in the corner of entrepreneurial finance, where it started in 2011, went mainstream. Crowdfunding has still no legal definition in the Swedish regulations. Its regulation is allocated in different sections of the legislation, which has been created a long time before the FinTech age. In the recent publication on Crowdfunding by the Swedish Financial Authorities (Finansinspektionen) it has been pointed out, that under particular circumstances it is even unclear which public authorities should execute supervision on crowdfunding. This presentation shows a bottom-up approach based of an imaginary entrepreneur case.

1. 31.03.2016
SVEN SVENSON'S
CROWDFUNDING
EXPERIENCE IN SE
A SHORT STORY OF
#MICHAL GROMEK

2. 31.03.2016
RESEARCHER ON FINTECH
AND CROWDFUNDING AT SSE
SE.LINKEDIN.COM/IN/MGROMEK
#MICHAL GROMEK
HEAD OF INT. FINANCIAL
SERVICES AT FUNDEDBYME

3. HE PRODUCES
WIFI-PIES
IN STOCKHOLM
THIS IS SVEN SVENSSON:

4. SWEDISH PRIVATE
LIMITED LIABILITY
COMPANY
(PRIVAT AKTIEBOLAG)
TECHNICALLY HE IS AN OWNER OF

5. HE DECIDES TO GO FOR
EQUITY CROWDFUNDING
The business started well,
now Sven needs more
customers, ambassadors
and investors to help him
to grow his franchise.

6. SVEN DOES WHAT EVERYBODY WOULD DO:

7. SWEDISH FINANCIAL SUPERVISION REPORT
ON CROWDFUNING, DECEMBER 2015
"In particular circumstances it is unclear
which government agency is responsible
for the supervision of crowdfunding in
Sweden"
"Crowdfunding still has no legal
definition in the Swedish regulations"

8. SWEDISH FINANCIAL SUPERVISION REPORT
ON CROWDFUNING, DECEMBER 2015
A private company can't advertise their
share issue process to the public.
A company like Sven's can't intake more
than 200 investors at a time.

9. CAN'T
ADVERTISE
.
REGULATION:
CAN INFORM

10. NOT MORE
THAN 200
INVESTORS
AT ONCE
REGULATION:
MULTIPLE SHARE ISSUE

11. CONSUMER
PROTECTION
IS THE MOST
IMPORTANT
REGULATION:
THE PLATFORM CAN'T PERFORM
ANY DD ON THE COMPANIES,
IT ACTS LIKE A DATING AGENCY

12. NO
INFORMATION
TO THE PUBLIC
PLATFORM:
INVESTOR SIGNS UP WITH
SOCIAL MEDIA AND BECOMES
AN EXCLUSIVE MEMBER ;-)

13. IN 2014, HE WOULD HAD PROBLEMS TO CLOSE
A FUNDING ROUND OF 100.000 EURO
In 2016, Sven was able to collect around
one M-EURO from 198 investors with an
average amount of investment
of 5050 Euro

14. HAS CHANGED
SINCE THE
LAST 10 YEARS
NOT ONLY THE SIZE OF FUNDING ROUNDS

17. THE CF
REGULATION
IN SWEDEN
ONE THING DIDN'T CHANGE SINCE
LAST 10 YEARS

18. 7 OUT OF 9
COULDN'T COVER
THE FUNDING GAP
ACCORDING TO THE SWEDISH FEDERATION
OF BUSINESS OWNERS

19. 4 OUT 5 NEW
WORKPLACES
SMES IN SWEDEN CREATE

20. IS THE REALITY
FOR 99.000 SWEDISH
SME COMPANIES.
EVERY DAY.
SVEN'S WIFI-PIE BUSINESS

21. MICHAL GROMEK,
STOCKHOLM SCHOOL OF ECONOMICS
& FUNDEDBYME
“It is high time for public authorities in
Sweden to define Crowdfunding by law,
create a national discussion forum and lead
us out of this medieval dungeon of shady
legislation.”

22. 31.03.2016
SVEN SVENSON'S
CROWDFUNDING
EXPERIENCE IN SE
A SHORT STORY OF
#MICHAL GROMEK