Meet crowd investor Magnus Collin

Here at FundedByMe we have a number of serial crowd investors who love what we do almost as passionately as we do. Magnus Collin is one of them. We asked him to share his crowd investor secrets and his tips for upcoming campaigns he has his crowd investor eye on.

Crowd investor Magnus Collins

1. Introduce yourself – what is your background, passions and day job?

I am a 40 year old IT and process improvement professional currently working for a software company focusing on secure product data collaboration solutions. I am a husband and a father of two wonderful children who make sure I am fully occupied most of the time. I have a thing for alternative investments and I am also a serial crowd investor.

2. How did you first get familiar with crowdfunding and why does being a crowd investor appeal to you?

For me it really started two years ago, when I somehow ran into a very compelling campaign for Jascha on FundedByMe. I had earlier bought into some tech gadget Kickstarter rewards-based campaigns. I find it appealing to, by investing, actually supporting someone else’s dream and passion coming true and also the fact that it feels more personal to invest in smaller companies, with the possibility of creating a mutual “relationship”. Joining in early also gives the opportunity to take part of the potential growth generated by good ideas, concepts and products – something earlier in most cases only possible for larger investors, business angels and family members or friends of the entrepreneurs.

3. Which campaigns on FundedByMe have you invested in? What made you want to get involved?

I have made 21 investments so far on FundedByMe – they are Jascha, InstrumentChamp, FundedByMe, Goodio Cools, MowJow, Mobitrotter, Lovetagged, Åre Natural Mineral Water, Virtuous Vodka, Isbjörn of Sweden, Give, Commons, NOA Potions, Mormor Magdas Glass, Eggs Inc, Zeifie, Fikabox, Marita Huurinainen, Fast Track, Someone.io and BrewDog.

Must admit that some of my investments have been made based on an interest in supporting the founder or an idea rather than believing fully it will become the next big thing, but the major part of the campaigns I have entered I think had great potential. Some of the ventures have not followed through as expected, ran into technical or product positioning issues and more or less paused their activities – so you have to consider the risk. The companies I did invest more in was Jascha, InstrumentChamp, Isbjörn of Sweden, NOA Potions and Mormor Magdas Glass. What differed was that I had a stronger believe in the product and the team behind, but it was also dependent on current availability of capital to invest.

4. What do you expect to get out of these investments on the long run?

Dreaming of one or two of the investments turning out to be the next unicorn, but to be more realistic about it – hoping to be able to spread risk and still overall exceed at least the Nordic stock exchange indexes.

5. What is the most important tip you’d give other investors considering crowdfunding?

All early stage ventures are high-risk and often very dependent on the founders’ combined drive and endurance. Also be aware that pre-valuation of some of the companies can be “questionable” short-term and are often based on a prognosis with rather aggressive expansion plans. Examine the figures, ask questions and add also your believe in the product, concept and most important the people involved to the equation, even more important of course if investing more.

6. Are there any new investment rounds on FundedByMe that you have your eyes on at the moment?

Currently looking into Galagowear and Sofie Bly – both already established brands and ready for expansion. Also interested in FrontOffice Nordic, I believe the concept has great potential.

7. Finally, what is your favourite feature about FundedByMe as a platform?

FundedByMe makes it easy becoming an early-stage investor and has also been able to attract very interesting new companies seeking capital.

Follow crowd investor Magnus on his (new) blog here and find him on Twitter here.

Interview with Spanish Investor, Jose Luis Minguez

Interview with Spanish Investor, Jose Luis Minguez

Introduce yourself – what is your background, passions and ‘day job’?

My name is Jose Luis Minguez and I was born in Bilbao, a middle-size warm and cozy city in the northern coast of Spain. Married to Maria, no kids. Ten years ago we moved to Barcelona for professional reasons.

My academic background is a degree in Chemical Engineering. I have been working for the same employer since 22 years ago, a multinational company in the chemical manufacturing industry. My job covers the field of environmental management. Working in an international atmosphere has allowed me develop an open-minded spirit and improve my language skills.

My passions are finance, both in the field of analysis and as an active trader of equities and derivatives; science & technology; the on-line world, especially new business models and tools.
I am fascinated by innovation and trends, trying to spot “the next big thing” (imagine investing in Google or Amazon at their inception?)
And, as “less serious” hobbies, I love good meal and wines, being with friends and sport cars extreme driving experiences.

How did you first get familiar with crowdfunding and why does it appeal to you?

Crowdfunding literally “showed up” on my screen while my usual web diving through financial and business websites.
Of course, my first contact was with classical reward-based crowdfunding.
But finding equity crowdfunding was kind of discovering a hidden treasure. The dream of every “wanna-be-entrepreneur-but-never-dared-to”! Suddenly, I was able to participate in the initial development of a start-up as a micro-investor. And I had plenty of opportunities to do so! So I digged and invested in different platforms, and finally I came across FundedbyMe.

Which project(s) on FundedByMe did you invest in? What made you want to get involved?

I have requested shares for the following projects on FundeByMe. For the time being, all of them are either in open round phase or pending for funds transfer.

Brokerstars: In my opinion, the mix of social on-line gaming plus financial world may be explosive.

Samastah: The world is moving towards a downsizing trend, in which wellbeing is not measured just by wealth. The variety of concepts and products developed around this view make this project very appealing.

I like locals: An innovative app for active travelers who are seeking for original ways of discovering the cities they visit, far from the typical tourist.

Yescredit: Credit crunch during the financial crisis has proved that innovative solutions in the microfinance industry are needed. Moreover, Estonia is the best example in its transition to a free market economy and I expect great things happening in this country in the following decades.

And, finally, FundedByMe: What else to add? My talk with Miguel Angel Trujillo, Spain country manager, convinced me (if I was not already!) that FBM is one of the best positioned European platforms for the equity crowdfunding exponential growth in the following years. Figures are proving we are right.

I also signed up for Frily and Kippy, which unfortunately did not get their funding target and did not get through. I wish their entrepreneur teams find the necessary capital to make these promising startups a profitable reality.

What do you expect to get out of these investments on the long run?

Of course, what we all expect is the highest return on our investment, either by dividend or through acquisition by another big player in its industry.
But there is always more than just creating wealth. I think that, in the deepest of my entrepreneurial mindset, I feel excited by the possibility of closely following the full development of a company in its way from a start-up to an established successful company, and what I can learn from it for potential personal ventures.

What is the most important tip you’d give other investors considering crowdfunding?

First of all, do your homework: do your own research.
This is all about kind of becoming micro venture capitalists, so we must behave almost like professional VCs.

This is not an easy-money new thing. Be psychologically and financially prepared to lose all your investment. Make small investments only with money you can afford to lose.
But, at the same time, dream of a 50x or 100x investment. These things happen from time to time in the VC world so, why not to us?

Are there any new investment rounds on FundedByMe that you have your eyes on at the moment?

1st Move and Rentecarlo sound very appealing to me. Both clean technologies and the so-called “collaborative economy” are great drivers in emerging trends. Let´s hope regulators do not interfere too much!

 

 

Mikko Silventola – Chairman and founder from Frontier

Mikko profiilikuva

Introduce yourself – what is your background, passions, ‘day job’ and why did you move to Singapore?
My name is Mikko Silventola, and I am the Chairman of Frontier and Founder of Calcus Publishing Group. I invest my own and Frontier’s funds to interesting tech start-ups with global potential. My passion is in start-ups and helping to take them international. I lived in the Middle East for a year and while I was there, decided that Singapore will be the next destination. Singapore is a really great and an easy place to do business. In addition, the start-up scene is developing and there’s no such “bubble” mentality compared to Silicon Valley. Singapore is also a great hub for expanding businesses to other Southeast Asian countries. I haven’t told it to my wife yet, but we must stay here longer than expected – Singapore rocks!

How did you first get familiar with crowdfunding and why does it appeal to you?
I think it was from Kickstarter back in the days when they were pretty much in the media. I also liked the idea that individuals could easily back campaigns and get involved in the interesting start-up scene.

Which campaigns(s) on FundedByMe did you invest in? What made you want to get involved?
I invested into danish WriteReader which improves Children´s literacy skills. I think their team was good and their product was interesting. Also, a good meeting with FundedByMe Singapore team got me convinced and I wanted to learn how the crowdfunding process really works.

What do you expect to get out of these investments in the long run?
Hopefully some returns, and I would like to get to know the team and their plans behind WriteReader in the future.

What is the most important tip you’d give other investors considering crowdfunding?
Have a careful look at the teams behind the investment opportunities. All (operating) founders must be 110% involved into the business.

Are there any new investment rounds on FundedByMe that you have your eyes on at the moment?
Actually I am waiting for the first cases from Singapore to be launched on the platform!

Meet crowd investor Patrick Stahl

Meet crowd investor Patrick Stahl

Crowd Investor Patrick Stahl

Introduce yourself – what is your background, passions and ‘day job’?
I am a Senior Partner at MiL Institute and work with leadership development and facilitate change processes in organizations. Troubled management/project teams and talented people is my passion!

How did you first get familiar with crowdfunding and why does it appeal to you?
Being an ex-entrepreneur myself, being a crowd investor is a perfect way for me to support other entrepreneurs with ideas. I love getting in early and watching business models grow and develop over those crucial early years.

Which project(s) on FundedByMe did you invest in? What made you want to get involved?
Virtuous Spirits, Nerdy by Nerds, Eggs Inc, Beibamboo, Elinnovation…. I think those are all, but may have missed one.
I wanted to get involved in these companies because I believed in the people behind the business ideas. Good people beat good ideas. Always!

What do you expect to get out of these investments on the long run?
Passion and energy, and in the odd case also a return on my investment.

What is the most important tip you’d give other investors considering crowdfunding?
Ignore the product/service when you invest. It’s all about the people and the team. Really. And listen to both your heart and your braincells.

Are there any new investment rounds on FundedByMe that you have your eyes on at the moment?
Oh….absolutely! High Heaven is my new pet peeve! Just look at their team – living the brand 100%!

Vote for the 2013 FundedByMe Investor of the Year!

Vote for the 2013 FundedByMe Investor of the Year!

2013 FundedByMe Investor of the YearThe shortlist is in and it is now time for you to vote for the 2013 FundedByMe Investor of the Year! The internal team have all nominated their finalists and now we need your help to pick the winner. We are looking to select someone who has invested in at least one campaign on FundedByMe, became involved in ways that helped the entrepreneurs beyond a simple investment, helped to spread the word about crowdfunding – and FundedByMe – and has inspired others to get crowdfunding through their actions.

Below are the list of our five finalists. Now it’s up to you!

FundedByMe Investor of the Year 2013

Alf Rehn - 2013 FundedByMe Investor of the Year finalist Alf Rehn (Finland)
Alf has invested in Beibamboo.
Javier Latorre - 2013 FundedByMe Investor of the Year finalist Javier Latorre (Spain)
Javier has invested in Eggs IncSamastahNaturix & Kippy.
Jarrko Huttu - 2013 FundedByMe Investor of the Year finalist Jarkko Huttu (Finland)
Jarkko has invested in ElinnovationPostifyOn The FleaSellanAppNerdy By Nerds Jeans, Eggs Inc, BeibambooGlobal Talent, Lastu and Zee.do.
Anette Nordvall - 2013 FundedByMe Investor of the Year finalist Anette Nordvall (Sweden)
Anette has invested in FundedByMe (of course), ElinnovationNerdy by Nerds JeansPostifyEggs Inc and Beibamboo.
Matti Vanhanen - 2013 FundedByMe Investor of the Year finalist Matti Vanhanen (Finland)
This former Prime Minister of Finland has invested in Beibamboo.

FundedByMe Investor of the Year 2013

Javier Latorre – Spanish Crowdfunding Investor

Javier Latorre – Spanish Crowdfunding Investor

Spanish crowdfunding investor Javier Latorre

Introduce yourself – what is your background, passions and ‘day job’?

My name is Javier Latorre, I am a 36 years old MSc in Telecommunications Engineering and hold an MBA and Masters in Structured Finance and Private Equity. In addition to that, I am the father to two amazing babies – 27 months and 8 months old – which drives me crazy on a daily basis. I am also the founder/CEO of two companies relating to professional corporate events and entertainment engineering, and a mentor at the IE Venture Lab in Madrid. I love to play blues rock guitar with my bandmates, although I had to postpone my many other hobbies due to my limited brain capacities – you try having two babies under two! My day job keeps me quite busy, as I have to manage two different companies in different physical locations, which forces me to be very sharp and disciplined. However, I’m lucky that I have an amazing team and a wonderful wife that make my life much easier. Additionally, I am a Spanish crowdfunding investor via FundedByMe.

 

How did you first get familiar with crowdfunding and why does it appeal to you?

At IE’s Venture day in 2012 I first met FundedByMe. I had only heard about crowdfunding before as an emerging trend, but didn’t know about Spanish crowdfunding options – or much else about what crowdfunding was all about. At that event I spoke with some of the other IE mentors and some investors, and I noticed that crowdfunding was a reality. I was fascinated by the concept and decided to do some research, which involved making my first crowdfunding investment. I fully support this way of financing startups, and I think that FundedByMe is absolutely needed in the actual situation, where the number of entrepreneurs and investors is rapidly growing. With crowdfunding and FundedByMe anyone can be an investor, which “socializes” a process that used to be quite complex in the past.

 

Which project(s) on FundedByMe did you invest in? What made you want to get involved?

I invested into Eggs Inc, a Swedish healthy and low fat/low carb fast food company offering meals made of eggs – perfect for the LCHF and Paleo tendencies that are everywhere in Europe! Due to my “offline” entrepreneur and investor profile, I don’t feel too comfortable investing in those businesses that have volume (viral) as a value driver. I prefer to invest in businesses where I fully understand the concept, where the value driver is clear and is not based on a soft potentials. That’s the first point. The second one, and specifically for projects where I don’t know the team behind it personally (which, by the way, is crucial for me for doing bigger investments), is that it should do something good for society. In this case, I would definitely become a customer of Eggs Inc, as my dynamic lifestyle is usually based on no-meals or fast food, which is currently a nightmare.

 

What do you expect to get out of these investments on the long run?

This first investment in FBM is mainly to learn and feel the “user experience” of the platform, which has been very successful thus far. For this kind of company, I am a long-term Spanish crowdfunding investor, not a share speculator, so my idea is to build a solid portfolio of investments for the future. What I really enjoy about the investments offered on FundedByMe is that I, a Spanish crowdfunding investor, have access to opportunities to invest in interesting campaigns from all over Europe.

 

What is the most important tip you’d give other investors considering crowdfunding?

You have to be patient and research, ask the entrepreneurs for information and small details, do a small amount investments to test and feel the user experience, and only invest in businesses that you understand and believe in. For larger investments, it’s absolutely critical to personally meet the management team – FundedByMe often hosts investor events where you can meet the entrepreneurs. I would recommend going to these events and shaking hands with the entrepreneurs – take the online world offline.

 

Are there any new investment rounds on FundedByMe that you have your eyes on at the moment?

Eggs Inc is currently in Open Round on FundedByMe. Spanish crowdfunding guru Miguel Ángel (FundedByMe Spain Country Manager) and I had some beers the other day, and I’m currently looking at two companies that sounded super interesting – particularly an exciting Spanish one that is launching on the platform soon! For sure I will crowd-invest more…but right now I can’t yet give you names. We will see…

Crowdfunding Angel Investor – Q&A with Anette Nordvall

Crowdfunding Angel Investor – Q&A with Anette Nordvall

When I met Anette Nordvall the first thing I noticed about this crowdfunding angel investor was her long, long hair. Then the rest came through – bubbly giggles hiding a serious interest in the financial world – and in helping entrepreneurs grow and succeed. Anette is quite a traditional angel investor, but never think ‘old school’ and Anette in the same sentence! This crowdfunding angel investor has embraced crowdfunding – and FundedByMe – and is helping us spread the gospel. Here’s more from Anette Nordvall:

Crowdfunding angel investor Anette Nordvall

Introduce yourself – what is your background, passions and ‘day job’? 
I’m your #Crowdfunding #Superstar – I’m a Serial Entrepreneur, Investor that loves sales and making deals. Spending my days as CEO at Programmera Mgm, a Swedish company that focuses on helping improve people’s digital strategies with easy to understand back-end solutions. As a partner in Stockholms Affärsänglar we focus on early stage seed investing. FundedByMe is a great forum for what’s out there…for finding the ‘Next Big Thing’.

I love sales, closing deals, paying it forward, honest people, step-counting, good health, a positive can-do attitude, coffee, my bike and being back in Sweden after many years abroad.

How did you first get familiar with crowdfunding and why does it appeal to you? 

I’ve spent the last 17 years with my family living in the US. Our sons started crowd investing in games and such a long time ago. The beauty in paying $10 in pre-money…even in the days of only having access to reward-based crowdfunding, I was already convinced the idea worked. I met with Arno and Daniel (FundedByMe co-founders) a couple of years ago when they first introduced the idea of FundedByMe and was looking for funding. The power of a group effort is compelling. Smart money can come in both small and large doses. Depending on product, service, or offer it can make or break success. It has to become the new thing what people are talking about. The crowd automatically provides you with ambassadors to spread “your gospel”. Being part of change in a group is fantastic when you understand what it does.

Which project(s) on FundedByMe did you invest in? What made you want to get involved? 

FundedByMe (of course), Elinnovation, Nerdy by Nerds Jeans, Postify, Eggs Inc and Beibamboo, so far…

What do you expect to get out of these investments on the long run? 

A lot, of course! Both from the entrepreneur and campaign and also from what I can add to the investment. Although my main focus is to make sure that the entrepreneur, product and investment is sound, I do invest with my heart. You might call it social investing, spreading the good word or inspiring others to do the same. The receiver/entrepreneur however must agree, understand and appreciate group power, their network, investing interests and goals. Amount should not matter in a crowd, it’s the attitude.

What is the most important tip you’d give other investors considering crowdfunding? 

I have to emphasize that it’s not only money involved. That is just the basic. Whatever project you are involved in has to strike something within you to address and help solve and use your experiences. The need to engage yourself in the project is crucial since you also have the opportunity to make improvements, not only use your network to add new opportunities, but also truly add value as an ambassador and spokesperson for the product, service or idea.

Are there any new investment rounds on FundedByMe that you have your eyes on at the moment? 

I think I’ll pass on any investment advice! However, since I am a music and new product- lover, and have invested before in that nische, I’m curious about the community Follow-music and Frily.

Please feel free to connect with me via: @nordvalla

Crowdfunding angel investor Anette Nordvall on FundedByMe

Crowdfunding equity investor testimonial – Jarkko Huttu

Crowdfunding equity investor testimonial – Jarkko Huttu

Jarkko Huttu is a crowdfunding investor on FundedByMe Introduce yourself – what is your background, passions and ‘day job’?

My name is Jarkko Huttu and I’m the Sales and Marketing Director and a stakeholder of LivLiv Solutions as well as a trainer at Eduhouse Oy. I travel around Finland coaching within IT, work search, sales, customer care and marketing and am fascinated by applications. I am also an unofficial serial crowdfunding equity investor on FundedByMe.

How did you first get familiar with crowdfunding and why does it appeal to you?

Originally I found out about the power of equity crowdfunding when my sister started to work within the industry, but I’ve always been interested in business and startups. I haven’t entered into entrepreneurship yet myself because of all the risks involved. But I am, however, interested in this kind of activity, where one can own a smaller share of something. Crowdfunding is a good way to get into business with a small amount of money and it’s also a good way to decentralise investments. For instance, if you want to buy a part of a company, 10k is not going to get you all that far, but with crowdfunding you can invest that amount in ten different companies and decentralise the investment quite well.

Which project(s) on FundedByMe did you invest in? What made you want to get involved?

First, I invested in a company called Elinnovation AB where I was the lead investor in the campaign. What appealed to me the most about this one was the fact that the entrepreneur, Elin, had a goal to become the business woman of the year in Sweden before her 30th birthday. When investing in a startup company, you invest most of all in the people behind it – and I do think that a person with goals can go really far. I have also invested in Postify, On The Flea, SellanApp, Nerdy By Nerds Jeans and Global Talent. All of these brands have great business ideas and I see a lot of potential in all of them.

What do you expect to get out of these investments on the long run?

Most of all I want experience from different lines of business and to observe the operations from a close distance. It becomes interesting in a different way when you have some of your own money in it. I don’t have any huge profit expectations, but the dream is that at least one of them would turn out to be a big success. However, it must be kept in mind that these are very high risk investments and that it is important to decentralise the investment.

What is the most important tip you’d give other crowdfunding equity investors?

The old rule of investing still applies: don’t put all your eggs in one basket! The main thing is to understand the company’s business idea 100%, believe in it and stand behind it – and only then to invest. I am the kind of person who, when I get excited, I go for 100%, but it is important to think and to observe things like the way the entrepreneurs respond to your questions, what information they offer and to really consider the investment. The entrepreneur and the team are of crucial importance – you invest in a person and not just in an idea.  

Are there any new investment rounds on FundedByMe that you have your eyes on at the moment?

Nina Ignatius BeibambooBeibamboo. There is a big chance that Beibamboo is going to be a very, very big thing. When this clothing brand for premature or sick babies becomes a huge success, I think many people will regret not investing in it now when they have the chance to do so for as little as €50… Beibamboo has received a lot of media attention and there are some prominent investors on board including Matti Vanhanen and Alf Rehn. Also, Nina Ignatius – the entrepreneur behind Beibamboo, is a very strong person and the kind of lead figure that can take the company anywhere. I do believe that crowdfunding is the next big thing in the future.

Alf Rehn – Interview with a crowdfunding investor

Alf Rehn photographed in Helsingfors.My name is Alf Rehn, and I’m a chair of management and organization at Åbo Akademi University. In addition to being an academic, I’m a strategic advisor, author, speaker and an utter popular culture nerd. 

How do you see the opportunities of crowdfunding?

I think crowdfunding has the potential to be truly revolutionary, and I think we’re just seeing the first steps of it. We’re in an experimental phase now, where a number of different ways of doing crowdfunding are all looking for that perfect balance. Once we’ve been able to figure out how to balance the needs of entrepreneurs, the needs of investors, the needs of fans and communities, and the needs of the “just curious”, then crowdfunding will be a very, very difficult model to beat. We’re all looking for ways to engage meaningfully, to help create things, and (why not?) maybe making a little profit while you’re at it. What’s not to love?!

Which project on FundedByMe have you invested in? What made you want to get involved? 

My currently biggest “play” has been to support Beibamboo, which is a hyper-cool project in functional clothes for babies. I’ve always thought that we need to pay more attention to innovation in fields outside of the obvious, and an innovative idea in the baby sphere excited me. I also loved that a project with such an amazing story could be made into a shared story, that we could buy into the change rather than just hope that it’d succeed.

What do you expect to get out of this investment on the long run?

My investment in Beibamboo was for me a very cheap way to get into social entrepreneurship. I don’t really care that much about whether I’ll make a profit, or even get my money back. I wanted to support something that deserved to be supported, and if my investment leads to even one premature baby getting better treatment, that’ll be enough for me. Don’t get me wrong, if my modest investment in Beibamboo in the end makes me a ton of money, I’ll be OK with that too… 😉

What is the most important tip you’d give other investors considering crowdfunding?

Look for people with dreams, the ones who are driven by a passion. Successful crowdfunding is, in the terms of Seth Godin, establishing a tribe, and a tribe needs a visualiser at its heart, somebody who wants to realize a big vision. Invest in people – and remember that crowdfunding allows for you to not only investing in an entrepreneur, but an entire community…one you’re part of creating. 

Are there any new investment rounds on FundedByMe that you have your eyes on at the moment?

I’m always looking, particularly for those things that are just a little weird, just a little madcap. Right now I’m going to have to go for a somewhat flirtatious answer: “I may have my eye on something, but it’s too early to say yet…”

Matti Vanhanen – Finland’s former PM – is a crowdfunding supporter

FundedByMe Finland recently received a huge nod of support from the former Finnish Prime Minister, Matti Vanhanen, when he made his first equity crowdfunding investment ever into Beibamboo, the hospital babywear collection currently featured on the FundedByMe platform. We asked Mr Vanhanen, currently the Chief Executive Officer of the Finnish Family Firms Association, to share his thoughts on crowdfunding with us – and he graciously participated!

Matti Vanhanen and Kristiina Pääkkönen from FundedByMe
Matti Vanhanen, former Prime Minister of Finland, with Kristiina Pääkkönen, Country Manager for FundedByMe Finland.

What is it about crowdfunding that most appeals to you?
Receiving borrowed capital is going to get more and more complicated for most companies, and more equity is required. There is virtually no marketplace for unlisted companies other than crowdfunding platforms such as FundedByMe, where one can reach for the greater audience. There companies can receive feedback from a very large audience, which already itself is very valuable.

In the future Europe must move into a similar kind of structure that is adopted in the United States, where the importance of equity is emphasized. The role of banks in funding companies is going to become somewhat smaller and companies will need more equity in various forms. This clearly leads to a situation where more instruments to raise equity capital are needed. For most companies there is no marketplace to look for external funding, and this is what makes crowdfunding platforms such as FundedByMe a good form of financing, since it is a new and interesting marketplace bringing companies and depositors together.

Today you are the CEO of the Finnish Family Firms Association. Do you think crowdfunding could be a relevant option for family businesses?
The financing of family businesses is going to get more complicated, especially when it comes to receiving funding from banks. The situation is often worse the smaller the size of the company. The terms of borrowed capital have been tightened, and stronger collaterals are required. The terms in general have become tighter, and another problem is that equity capital has been constricted with tax legislation, which in turn raises the costs of equity capital in companies.

I believe that there will be demand for this kind of activity (crowdfunding), where one makes an investment with long-term profit expectations. I think there might be many owners within the family businesses who are curious to observe whether there are sensible investment targets within unlisted companies.

I am sure that in the future there will be demand for this, to receive more than discount security profit by spreading small investments with low management expenses in interesting unlisted companies. Also, there is always the possibility that if one is excited about the company’s idea, it just might become the next success story.

Is there a trend for the younger generation to break off from the family business and start their own entrepreneurial ventures?
It is very typical for family businesses to have new companies formed within. In many cases the young generation starts their own companies before they start heading the actual parent company, and especially these young entrepreneurs might be very open to new ways of financing. The younger generations often have visions about how things will be done under their leadership and are eager to pursue considerable leaps forward, which often makes them more open to new development ideas.