Should Crowdfunding be Regulated in Sweden?

Should Crowdfunding be Regulated in Sweden?

Crowdfunding seems to be on everyone’s lips. Surprised? During 2014, the global crowdfunding market impressively injected 16 billion USD into different projects – making it hard for governments to turn a blind eye on the phenomena. FundedByMe grew more than 640% in Q1 and Q2 2015 vs. Q1 and Q2 2014 and the client base has increased to more than 55,000 active members.

For 2015, the global crowdfunding market is projected to double and FundedByMe especially sees a big growth in Asia. Don’t believe the myth that there’s tons of funding out there, especially to those who would like to become business angels with small sums (although the average investment on FundedByMe is €5,800 thus not so small amounts are invested).

The Swedish market is maturing and the governmental ruled Swedish Financial Supervisory Authority has started to implement information about crowdfunding as a natural part of their reports (page 15). Also, they have now scheduled a meeting to analyse the benefits and risks of crowdfunding on the Swedish market, read about it in SvD here . The Minister of Financial Markets, Per Bolund (MP), expressed his interest and belief in the market by saying that regulations need to be implemented, helping the market to grow even further. In addition, he recognises the need and therefore the huge demand for these types of financial services, enabling funding in a way that the traditional funding market can’t today. Also, Robin Teigland, researcher in crowdfunding at Stockholm School of Economics, claims that the distrust towards the traditional bank sector is growing – acknowledging the benefits of Crowdfunding to an even larger extent.

Today, the regulations for Equity and Loan based crowdfunding are severe due to distribution regulations and the Limited Companies Act (Aktiebolagslagen) and thus Sweden is very monitored. FundedByMe has been complying to the Companies Act since it’s inception and us also already registered by Finansinspektionen for it’s crowd-lending branch. However, FundedByMe couldn’t be happier about the news, since it proves the seriosity of the market which the company has strived for since the start in 2011. Bringing the topic to a political level recognises FundedByMe and other players on the market as well as it helps people to use the service more effectively. Even though nothing is legislated yet, it’s being talked about which FundedByMe thinks is a step towards a market expansion and development!

What do you think? Should crowdfunding in Sweden be regulated and should equity crowdfunding and crowd lending, already regulated by the Companies Act (Aktiebolagslagen) be regulated?

Win an Apple Watch with FundedByMe

Win an Apple Watch with FundedByMe

Early adopters, win yourself an Apple Watch

Tech industry readers, of course it’s no surprise to you that the hottest device these days is the Apple Watch. Because FundedByMe is the hottest FinTech company, we see these two as a beautiful match. Therefore we prepared a special incentive for you:

  1. Simply lend to a company of your choice who are running a loan-based crowdfunding campaign on FundedByMe,
  2. Share your experience by posting on FundedByMe’s Facebook, twitting on your Twitter with #FBMAppleWatch or mailing us your image, clip, podcast or text (at least 120 characters) to,
  3. Our jury will then pick the most interesting and exciting submission and reward it with an Apple Watch with stainless steel case!

Easy right? Of course! Remember, the closing date for entry is 30th of March 2015, so there is not much time left. Find more details at

Right now you may choose between:

myClosetRoom – an app that builds and connects a fashionistas community where they can get feedback on their personal style,

KaffeLuckan – a new mobile espresso bar in Stockholm and Gothenburg,

Konst-ig – a number 1 art & design bookstore in Northern Europe for the last 20 years.


Be a part of next new big thing!


First ever loan-based crowdfunding successfully closed

First ever loan-based crowdfunding successfully closed

Our first loan-based crowdfunding campaign has closed! Several days ago Sushirullen, an ecological sushi shop, were funded 10 000 euro in the first ever loan-based crowdfunding campaign on FundedByMe. And they did it in only 56 hours!

29 lenders from 23 countries decided to lend to Sushirullen their money for 6 months. Why? Two main reasons:

  • They believe in the business model presented by Johan Falk, Sushirullen’s CEO and founder. A long roll of sushi that you can eat like a sandwich is a good idea, isn’t it?
  • The yearly interest rate of their investment is 14,33%. Negative interest rates in some other countries, makes this deal even better.


What’s more, the whole procedure is very user friendly – 100% online. It is also secure for lenders – they can see the risk indicator by Bisnode scoring agency and the risk indicator by FundedByMe which is calculated based on Bisnode and UC financial information. So the lenders are aware of the investment risk, but on the other hand know exactly when and how much they could earn.




Why do we need to verify the crowdlenders’ identities?


FundedByMe has just launched its new product, loan-based crowdfunding, which is also known as crowdlending. This service enables savers and private investors from nearly all over the world to become lenders and benefit from the growth of Swedish small and medium businesses.

How to do it? It’s easy! Creating an account takes only a few minutes. However, after the registration is complete, FundedByMe has to verify the identity of each lender. This is done in order to provide both entrepreneurs and lenders with a transparent and secure environment. It also complies with international regulations.

Documents need to be veryfied by peer-to-peer lenders

In order to verify the lenders’ identity, FundedByMe asks the users to upload their IDs or passports on their accounts. FundedByMe later passes on the data to an external payment provider, MangoPay, which then verifies the lender’s identity. However, the personal data provided by the lenders to FundedByMe and MangoPay will only be used in order to verify the lender, as well as in the rare case of default. The lenders’ personal information will not be passed on to any other external actors.

After your identity has been verified, you can start lending straight away!

FundedByMe launches loan-based crowdfunding (P2P lending)

Once again, FundedByMe is changing the financial landscape in Sweden, by introducing a new financial instrument for investors: loan-based crowdfunding (also known as: crowdlending, peer-to-peer lending or social loans). On February 17th FundedByMe, being the fastest growing crowdfunding platform in Europe, introduced peer-to-peer lending available to Swedish small and medium enterprises.

The newly launched peer-to-peer lending by FundedByMe enables investors from all over the world to lend money to Swedish businesses. Swedish entrepreneurs are now able to receive alternative financing and use it to develop their companies. The whole process is online based and the registration takes only a few minutes.

Investors are welcome to browse the loan-based crowdfunding campaigns on the platform and choose those they are willing to lend their money to. The risk rate makes it easy for the investors to choose the suitable company and possible incomes. Then they need to only log in or create an account giving few data and then upload their ID, which is verified. It may take up to 2 business days.

Starting raising funds in crowdlending model is also very simple for an entrepreneur. After creating an account, entrepreneurs directly receive a feedback from FundedByMe, which calculates the risk grade based on the enterprise’s financial history. Depending on it, the exact interest rate of the potential loan is set down. However, they are relatively cheap and because the whole procedure si 100% online, an entrepreneur may apply for a social loan whenever she or he wants.

Here you may find more information about loan-based crowdfunding for lenders and entrepreneurs.

The new peer-to-peer lending (crowdlending) offered by FundedByMe provides investors with high revenues and entrepreneurs with competitive interest rates, which are on average lower than in banks. The whole process is transparent and secure, thanks to the latest financial information provided by the two credit bureaus FundedByMe has a collaboration with. 

FundedByMe is now keeping its fingers crossed for the first crowdlending campaigns on the platform. You can also be a part of this history-changing moment: peer-to-peer lending.