SparkUp launches equity crowdfunding in Norway
A new era is arriving to Oslo. Equity crowdfunding has been booming, with an explosion of new platforms and regulations. In 2016, crowdfunding is expected to surpass VC investment.
With new legislation such as the passage of the JOBS act in the USA, the funding scene is undergoing a sea-change. While equity crowdfunding is an exciting new funding solution, regulatory issues around the world mean that it is implemented in different countries at different speeds.
Enter Camilla H. Andressen, who is bringing equity crowdfunding to Norway for the first time, with the launch of SparkUp-Norge. A seasoned Swedish entrepreneur and investor, she has spent over 20 years running an investment company and has been an active investor in Norway.
Untapped wealth
Norway is a market full of untapped wealth. The key to activating this wealth in the startup scene is to prove the numbers, and show how investing in startups, smartly, pays for itself.
Furthermore, crowdfunding is very much based on personal connections and trust. Norwegians who have money to invest would much rather invest in a person, rather than a good idea.
This is the basis of SparkUp’s crowdfunding model.
Funding through social capital
Rather than simply posting a call for investment, rounds are promoted only through the SparkUp network and the network of the company raising the round. Outsiders are not involved, meaning that both SparkUp and the company have a clear view of any investors and their current portfolios. The founders refer to the tool as “online social funding.”
SparkUp notes that 3 times more money is invested by family and friends then business angels and VCs, and 15% of crowdfunding comes from the personal networks of the companies. They call this “lovemoney”.
SparkUp also provides business tools for companies, including access to legal partners and social marketing.
Read more about SparkUp here.
