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View Full Version : Legalities of CrowdFunding in Various Countries - US, Canada, Hong Kong etc



admin
12-06-2012, 10:03 AM
There is still much confusion online and off surrounding the various laws of different companies when it comes to the legality of crowdfunding. Thanks to http://www.projects2crowdfund.com/?p=1704 for providing this comprehensive list of laws throughout the world.

U.S
The law in the U.S provides that buying and selling of stocks by non-accredited parties is not legal. It does not allow non-accredited small scale investors to venture in equity crowdfunding.

UK
The region allows buy and sell of stocks through crowdfunding. Its law provides that if duly recognized platforms can vouch for the credibility of the project, then such project is allowed to conduct the said venture of raising seed capital. In fact, the Hongkong based site growVC which has an office in said place offers buy and sell of stocks by way of public fundraising. With growVC, crowdfunding in different countries is possible as it has offices in different countries.

Canada
Like the U.S, equity crowdfunding is not legal in the country. However, it is said that most of its citizens are still not aware of this fact.

Hongkong
For Hongkong, this new means of raising seed capital is legal. In fact, the equity based platform Grow VC is based in said place although it has offices in other parts of the world. So, crowdfunding in different countries is very possible in this part of the world.

Netherlands
The country is open to the idea. In fact, the first website “symbid” which offers equity based crowdfunding services is from the said region. One success story is Enviu which was said able to reach €100,000 in such venture. In short, crowdfunding in different countries is possible on the said platform as it only require users to have an email or social accounts in FB, LinkedIn, Twitter or Hyves.

France
The country allows equity based crowdfunding. The startup of ANTABIO which is a biotechnology had been made possible through the website WISEED. It accepts entrepreneurs from different European communities. So, crowdfunding in different countries is possible in France.

Sweden
It allows stake of ownership in business through public fundraising. In fact, the site FundedByMe which is based in said place offers such service. Crowdfunding in different countries is possible in the said site as it allows users from outside the region. However, it is said to focus more on inspiring Scandinavians and Norwegians.

smartinvestor
12-07-2012, 04:27 AM
U.S
The law in the U.S provides that buying and selling of stocks by non-accredited parties is not legal. It does not allow non-accredited small scale investors to venture in equity crowdfunding.

So, this is the one due to change sometime soon.

admin
12-13-2012, 09:22 PM
Yeah and in my opinion, will open up the market even more for those other nations.