Brussels, 19 April 2014 www.crowdfundingnetwork.eu P a g e | 1 Support services to foster the crowdfunding environment in Europe focused on web entrepreneurs Startup Europe Crowdfunding Network Final Report Brussels, 19 April 2014 Deliverable 4: Final report for the Service Contract with the European Commission, contract number: 30-CE-0557296/00-95 Prior deliverables: Deliverable 1: Detailed Road Map Deliverable 2: Interim report Deliverable 3: Web Portal and Online Consultation The Startup Europe Crowdfunding Network for Webentreprneurs has been managed on behalf of the European Commission by WEBclusive BV, the Netherlands, and Fanshaw & Fothergill SCS, Belgium, with support of the European Crowdfunding Network AISBL, Belgium. The project website is located at www.crowdfundingnetwork.eu The contracting parties WEBclusive BV and Fanshaw & Fothergill SCS will be handing over all work done for future development to the European Crowdfunding Network ASBL as outlined in the European Commission service contract number: 30-CE-0557296/00-95 with the end of the contract. European Crowdfunding Network AISBL Registered offices: Av d’Hinnisdael 6 bt 4, B-1150 Woluwé St Pierre, Belgium
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B r u s s e l s , 1 9 A p r i l 2 0 1 4 www.crowdfundingnetwork.eu P a g e | 1
Support services to foster the crowdfunding environment in Europe focused on web entrepreneurs
Startup Europe Crowdfunding Network
Final Report
Brussels, 19 April 2014
Deliverable 4: Final report for the Service Contract with the European
Commission, contract number: 30-CE-0557296/00-95
Prior deliverables:
Deliverable 1: Detailed Road Map
Deliverable 2: Interim report
Deliverable 3: Web Portal and Online Consultation
The Startup Europe Crowdfunding Network for Webentreprneurs has been managed on behalf of the
European Commission by WEBclusive BV, the Netherlands, and Fanshaw & Fothergill SCS, Belgium,
with support of the European Crowdfunding Network AISBL, Belgium.
The project website is located at www.crowdfundingnetwork.eu
The contracting parties WEBclusive BV and Fanshaw & Fothergill SCS will be handing over all work
done for future development to the European Crowdfunding Network ASBL as outlined in the
European Commission service contract number: 30-CE-0557296/00-95 with the end of the contract.
European Crowdfunding Network AISBL
Registered offices: Av d’Hinnisdael 6 bt 4, B-1150 Woluwé St Pierre, Belgium
3. Research analysis and online consultation ..................................................................................................... 7 3.1. Conclusions ............................................................................................................................................ 7
3.1.1. Web entrepreneurs ...................................................................................................................... 7 3.1.2. Crowdfunding platforms ............................................................................................................... 8 3.1.3. European Commission .................................................................................................................. 8
3.2. Desk research ........................................................................................................................................ 9 3.2.1. Crowdfunding Platforms Focussing on Web and Internet Businesses ......................................... 9 3.2.2. Crowdfunding Model of Web Focused Platforms ....................................................................... 10 3.2.3. Country Focus ............................................................................................................................. 10 3.2.4. Platform Language ...................................................................................................................... 11 3.2.5. Average Amount Raised by Web Entrepreneurs ........................................................................ 11 3.2.6. Geographical Distribution of ‘Successful Crowdfunding Campaigns .......................................... 12 3.2.7. Type of Crowdfunding Used ....................................................................................................... 12 3.2.8. Average Number of Backers/Investors ....................................................................................... 13 3.2.9. Projects Exceeding the Campaign’s Goal .................................................................................... 14
3.3. Online consultation ............................................................................................................................. 15 3.3.1. Reasons to use crowdfunding ..................................................................................................... 15 3.3.2. Platform Choice .......................................................................................................................... 16 3.3.3. Planned Target Budget ............................................................................................................... 17 3.3.4. Successful campaigns .................................................................................................................. 17 3.3.5. Willingness to re-use crowdfunding ........................................................................................... 18 3.3.6. Reasons for not having used crowdfunding yet.......................................................................... 19 3.3.7. How to stimulate crowdfunding in Europe ................................................................................. 19 3.3.8. Quality label for crowdfunding platforms: entrepreneurs ......................................................... 20 3.3.9. Quality label for crowdfunding platforms : platforms ................................................................ 21 3.3.10. Quality label for crowdfunding platforms: content .................................................................... 21 3.3.11. European Commission’s role in promoting crowdfunding ......................................................... 22
3.4. Additional online consultation: Common Issues for Crowdfunding Platforms ................................... 23 4. A proposal for taxonomy and for data collection......................................................................................... 25
4.1. Taxonomy ............................................................................................................................................ 25 4.2. Framework for Data collection ............................................................................................................ 25
5. APPENDIX ..................................................................................................................................................... 28 5.1. Research analysis and online consultation Desk Research .................................................................. 28 5.2. The potential impact from the main dissemination activities and exploitation of results .................. 28
5.2.1. High-level Workshop on Crowdfunding and Web-entrepreneurship ......................................... 29 5.2.2. Web-portal .................................................................................................................................. 31 5.2.3. Other aspects explored regarding the portal ............................................................................. 37
5.3. Data Collection .................................................................................................................................... 38 5.3.1. An Economic model for Data collection and publication ............................................................ 38 5.3.2. Open Call for Technology Providers ............................................................................................ 49
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2.2. Project Objectives The European Commission’s "Web Entrepreneurship Action Plan" is targeted at strengthening the
environment for entrepreneurs who are starting and developing web businesses. The DAE is also
providing support for WE. One of the priorities of the action plan is to facilitate access to funding
opportunities for web startups. Within this priority, crowdfunding is a focal point. The objectives of
this project within the Startup Europe initiative and the "Web Entrepreneurship Action Plan" with
regard to web entrepreneurs were:
Acquiring additional data and knowledge about the current status of the web related crowdfunding sector in Europe (number and geographical distribution of crowdfunding platforms related to web businesses, number of web startups using crowd funding and related financial figures, possible issues and barriers affecting the growth of the sector, at national and EU level).
Based on the above, drawing some conclusions on the possible measures which would further strengthen the crowd funding environment and facilitate the pan-European growth of the sector.
Supporting higher visibility and accessibility of existing crowd funding opportunities for webentrepreneurs Europe wide.
Contributing to strengthening the links and networking between existing European crowdfunding platforms, as well as to foster the creation of new, web focused platforms.
Raising the level of education of funders and web entrepreneurs as regards investment opportunities and access to finance through crowdfunding.
The project aimed at helping reach the above objectives by engaging with relevant stakeholders
across Europe. Initially, a public workshop aimed at developing dedicated outputs for continuous
work within the project was held with around 70 participants in June 2013. Following the workshop a
dedicated web portal was built as an education and dissemination tool for issues around
crowdfunding for web entrepreneurs and other stakeholders, in particular:
General introduction to crowdfunding and the benefits and opportunities of crowdfunding
Links to crowdfunding platforms (for web entrepreneurs)
Rules governing the platforms
Educational information how to run a successful crowdfunding campaign
How to run a successful crowdfunding campaign
Which type of crowdfunding is best for specific businesses/projects
Information for funders how to choose a campaign
On top of the workshop and the web portal the project aimed at executing dedicated desk research
and an online consultation with the aim to A) raise awareness of web entrepreneurs and
stakeholders of crowdfunding and the work of the Startup Europe initiative around crowdfunding as
well as to gather information relevant for understanding the market expectations. These results are
outlined in this report. Further, the project aimed at developing a framework for a taxonomy for
crowdfunding web startups and a framework for data collection and near-real-time data publication.
The findings of this work are also presented in this report.
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5. APPENDIX The Appendix contains background information and additional details relevant for the work
provided, but not necessary for the presentation of the results in the main section of this report.
5.1. Research analysis and online consultation Desk Research As part of the project we conducted extensive research on web entrepreneurs and crowdfunding in
Europe. In particular the research aimed at understanding how web entrepreneurs use crowdfunding
to finance their projects and if crowdfunding platforms - as they operate now - fit their needs.
Research included an online questionnaire, telephone conversations and extensive desk research.
The first stage, desk research, was directed at tracing a comprehensive directory of existing and
operating equity and reward based crowdfunding platforms around Europe. Our research has
identified some 230 platforms, but we are aware that we will have missed some platforms and that
in the time since our efforts there might have been new platforms been created or some
disappeared. For each platform was indicated: i) the crowdfunding model used; ii) the country of
incorporation; iii) the countries in which the service is offered; iv) the languages available; v) the
sector focus.
A first analysis was conducted on these data, focussing specifically on those platforms which have a
sectoral focus on Web and Internet businesses. The results are reported in the following section.
In the second stage, analysis of the desk research, a sample was derived from the data collected
during Stage 1. This sample included the biggest equity crowdfunding platform (where available) and
the biggest reward crowdfunding platform identified in each country. The platform’s dimension was
evaluated by looking at the number of financed projects and of social media followers. For each
platform in the sample were identified, among the successful crowdfunded projects, those initiated
by web entrepreneurs. Data on these were then collected from the sample. In particular, we looked
at: i) the amount raised by the project; ii) the targeted amount; iii) the crowdfunding type used - i.e.
equity or reward crowdfunding ; iv) the country where the fundraising took place; v) the numbers of
backers/investors.
The online consultation was structured based on the initial input from the “High-Level Workshop on
Crowdfunding and Web Entrepreneurs” and was disseminated to all participants of this workshop
and other interested stakeholders. It was also made public on the project website and the website of
the European Crowdfunding Network AISBL. Social media was used to further dissiminate it and the
the European Crowdfunding Network AISBL informed its network of at the time around 1200
contacts via email of the survey. The survey remained open for just under three months.
5.2. The potential impact from the main dissemination activities and
exploitation of results In the following we will discuss the potential impact from our dissemination activities. We are aware
that that much of our dissemination activities cannot be monitored adequately and those indicators
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The results were compiled by the workshop moderators with the input of the workshop participants
following the workshop itself, this ensured ongoing review and development of the ideas and
commitment from the participants. The Results, after editing, were presented to the European
Commission and published as Proceedings of the High-level Workshop on Crowdfunding and Web-
entrepreneurship in August 2013 on the project website (both as a single document for download
under Resources and as individual stories under News) as well as on the European Crowdfunding
Network AISBL website. The proceedings were also sent by email to the full contact database of the
European Crowdfunding Network AISBL of around 1200 individuals at the time, including press and
bloggers. The results of the workshop, in general focusing on issues around data transparency and
collection were used as the basis for all following work on draft taxonomies for crowdfunding web
startups and a framework for data collection and near-real-time data publication of crowdfunding
offerings and covering market developments.
5.2.2. Web-portal
The web-portal of the Startup Europe Crowdfunding Network for webentrepreneurs has been a
dedicated delivery for engagement as well as a key dissemination platform. The portal has been
developed with the aim of providing:
General introduction to crowdfunding and the benefits and opportunities of crowdfunding
Links to crowdfunding platforms (for web entrepreneurs)
Rules governing the platforms
Educational information how to run a successful crowdfunding campaign
How to run a successful crowdfunding campaign
Which type of crowdfunding is best for specific businesses/projects
Information for funders how to choose a campaign
Access to crowdfunding opportunities in the EU
Opportunity for networking and collaborative problem solving among web entrepreneurs
The development of the portal followed the work on the related issues and has progressed adequately. The portal follows a simple structure and is easy to use. All areas, pages or posts are reachable with two mouse clicks.
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5.2.2.1. Content of the web portal
The current web portal features a number of specific areas in which information for different purposes can be obtained. Some the information is a dedicated result of the project, others present data that has been developed by the European Crowdfunding Network AISBL outside of this project but are a vital contribution to the overall project scope.
The portal of the Startup Europe Crowdfunding Network for web entrepreneurs features a general About page in which information on the project and Startup Europe are given, the parties behind the project and the steering council, including relevant web links.
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Under the News tab news worthy items from the project or related issues have been published, including posts written for the international crowdfunding blog www.crowdfundinsider.com that have been reposted here. In this section we also republished the parts of the High-level Workshop on Crowdfunding and Web-entrepreneurship Proceedings in order to increase access opportunities. The online consultation of the Startup Europe Crowdfunding Network featured visibly on all pages. However, it remains difficult to identify content specific to web entrepreneurs – as much of news relevant content is either general, focused on services or technology (often hardware or gadgets within crowdfunding) – or is inadequate promotional material from individual companies (often not balanced in their presentation of facts or developments and therefore in our view not relevant for a portal such as this). We believe that rather than pushing crowdfunding specifically for web entrepreneurs, it will be advantageous to push crowdfunding into the existing technology and web community (and others) by increasing awareness of success stories, impact and reach of web related crowdfunding activities.
Under the Resources tab industry papers and other relevant studies have been posted, such as the full version of the High-level Workshop on Crowdfunding and Web-entrepreneurship Proceedings but
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also the Call for Submission for Technology Providers used to identify openly relevant data technology providers that would be able to assist in establishing a data collection tool and platform to publish crowdfunding opportunities across the EU.
As a result of our work around taxonomies and data collection, we believe that nearly all general resources to be developed today with regard to crowdfunding (best practices, transparency, data, taxonomies, rankings etc) will not be adding specific value with a focus on web entrepreneurship, rather we believe that a certain part of the web entrepreneurs is more aware of and more affine to crowdfunding than non-technical counterparts in other areas of the services industry. Any actions in promoting crowdfunding to web entrepreneurs should therefore be designed for all other entrepreneurs (and specifically service entrepreneurs) with the understanding that it will be web entrepreneurs that are likely to pick up on crowdfunding prior to other businesses because of the close relationship (and often dependence) on the internet and internet-based communities.
Under the Crowdfunding 101 tab we created an easy access guide to crowdfunding for interested web entrepreneurs and others, giving help in understanding crowdfunding in general and with specific approaches in mind. The 18 different pages answer a cross section of potential questions and help guide interested parties in building and executing a crowdfunding campaign, they are of course not to be understood as a complete list that will answer any potential issues for any particular campaign or idea. Topics covered are:
What is Crowdfunding?
The added value of crowdfunding
Types of Crowdfunding Platforms
How to set up a crowdfunding campaign
How to Set a Crowdfunding Campaign's Goal
How To Create Compelling Rewards
Crowdfunding online solutions, plugins and software
Why People Invest Through Crowdfunding
Understanding What Type of Crowdfunding is Best for Your Startup
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Using Social Medias to Engage with Campaign Supporters
How To Protect Your Idea
How To Get Your Project On Platform's Homepage
Tips To Launch a Crowdfunding Platform
How Peer-to-Peer Lending Works
This part of the online portal serves as a general introduction to crowdfunding and clarifies the benefits and opportunities of crowdfunding, while also offering educational information how to run a successful crowdfunding campaign, a successful crowdfunding campaign and which type of crowdfunding might best for specific businesses/projects plus providing information for funders how to choose a campaign. However, none of these aspects can be sufficiently answered in general and will always need relevant research by the funds seeking entrepreneur or, if needed, the advice of a third party.
We note that the lack of public knowledge is indeed inspiring a new breed of consultants to take up the challenge of bringing relevant knowledge to the market. Crowdfunding consultants, despite the fact that they have no benchmark of their own expertise are appearing across Europe, in Germany they have even encouraged a collaboration with the Chambers of Commerce in offering crowdfunding consultant accreditation. While from the basis of this project we cannot comment in detail on any such actions, we definitely witness a growing interest on both buy and sell side which might develop into specialised agencies similar to other services build around the web, such as search engine optimization, social media or online marketing consulting agencies.
Under the Directory tab we have researched and listed a non-comprehensive list of crowdfunding platforms open to web entrepreneurs from all major crowdfunding funding models (donation, reward, debt and equity). Platfroms are listed by country with indication of their offered funding model and web-link. While these list not all platforms available, they comprise more established or more focused platforms and are likely more suitable for a first time crowdfunder. However, we refrained from introducing any data that could be used to provide a ranking on this page in order to remain fully independent and unbiased. This page offers specific links to crowdfunding platforms for web entrepreneurs that may help to get a better overview on the market.
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We believe that a directory such as this will always be limited by a number of external factors that the EC might be inclined to help address. Crowdfunding platforms as such are not defined businesses and the inclusion of one crowdfunding platform over another cannot be objective at this point in time. Similarly, web entrepreneurship does not adhere to one definition and many crowdfunding platforms use different terminology that are likely to include web entrepreneurs, but might also include others. A standard taxonomy also with this respect will help to gather relevant data, but moreover, lack of recognition of crowdfunding platform as a business or sector means there are no public registries, such as with Chambers of Commerce, that would allow drawing on a relevant overview of crowdfunding platforms. Increased regulation for equity and debt crowdfunding platforms such as in Italy, France or the UK will be helpful to some extent, but as donations and reward based crowdfunding is not adequately captured by these regulation, relevant platforms will continue to operate as advisors and will not be covered specifically by official company registries as crowdfunding businesses. In this respect, web entrepreneurship related crowdfunding platforms are even less visible.
Under the Cases tab we listed eight case studies that will help interested web entrepreneurs to better understand what types of projects have been successful on what type of crowdfunding platforms. We believe that success stories do not need to be large in funding but inspiring in promoting the idea of crowdfunding. The selected cases cover a mix of country and funding approaches and should therefore be able to be convey the opportunities that crowdfunding can have for a variety of businesses.
While it is possible to generate success cases (and failure cases) of web entpreneurs’ crowdfunding compaigns by monitoring the market, the physical work to do this will not make such an endeavour sustainable. Also, while some data is publicly available, to contact individual platforms and project owners is prohibitive time consuming for a wider roll out. Again, the establishment of a data collection framework and its pan-European implementation would be most favourable in detecting success and failure stories – and thus also allow drawing lessons on best practices.
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5.2.3. Other aspects explored regarding the portal
We also explored the feasibility of implementing the following services on the web portal:
(1) Access to crowdfunding opportunities in the EU (2) Opportunity for networking and collaborative problem solving among web entrepreneurs
1. For the first aspect, offering crowdfunding opportunities in the EU, there have been two main hurdles to overcome from developing the relevant services.
First, in order to obtain relevant data from crowdfunding platforms that allow to show actual crowdfunding opportunities one needs to either have access to the application programming interface (API) of the crowdfunding platform (only large platforms have these today) or develop a separate API that crowdfunding platforms than have to implement into their system (which is a time and cost hurdle for platforms). The development of relevant APIs is quite costly (development cost for a single API can well reach €10,000), which means that the operator would have to cover relevant cost (though usually less the previous this figure) for every crowdfunding platform that offers access to their data via API. On top, crowdfunding platforms that do not yet have their own APIs would need an incentive to integrate a third party API (developed by the data aggregator). An alternative is to win crowdfunding platforms to submit regularly relevant data in CSV format that then can be uploaded into the portal. In this scenario the problem remains to motivate crowdfunding platforms to engage in this activity on an ongoing basis. In both cases, a clear value added for the crowdfunding platform remains unspecific. Our discussions with crowdfunding platforms have therefore not generated a relevant interest for larger support. However, as discussed in part 5, we have formed collaboration with CrowdScanner Ltd. In the UK, a commercial entity that has developed a relevant search or aggregation engine and is rolling this out as of late Spring 2014 through a business model that promises crowdfunding platforms increased incoming investors through a network of sophisticated investors. There are other similar undertakings, but none we have seen offering the same possible reach and scope at this point in time. The success of this and other such operators will be providing further insights into this issue.
Second, in order to legally be able to republish crowdfunding offers with regard to equity and debt, some legal compliance is required. In some proposed and existing legislations this is or will be forbidden (Spain, for example). Legal compliance would depend on the business model pursued, however, and a free listing would have the least (and in many cases no) compliancy issues. In combination with the first aspect, the implied cost for developing and rolling out such a system will require a significant amount of funding and, with regard to sustainability, a clear business offering to crowdfunding platforms that would incentivise an adequate fee structure to be operated.
We spent significant efforts on exploring potential solutions around taxonomy and data collection in collaboration through an open public call (see below). Here, our aim was not to support a commercial business or to engage in any business activities with any such entity, but to use existing technology free of charge in order to test at relatively low cost the implementation of a standard taxonomy for data reporting within the European crowdfunding sector.
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2. For the second aspect, opportunity for networking and collaborative problem solving among web entrepreneurs
Throughout our work, including workshops and surveys, we did not identify any issues related to crowdfunding that would have had a specific interest to web entrepreneurs. Indeed, the issues around crowdfunding that might be of interest or hindrance to web entrepreneurs today have turned out to be issues surrounding services industry entrepreneurs rather than specifically web entrepreneurs, such as difficulties in designing relevant reward structures. Nevertheless, the web affinity of web entrepreneurs makes them more likely to understand crowdfunding and its issues compared to other non-web related services entrepreneurs. There is increasing interest in relevant media regarding crowdfunding and it has been positive for our project to get coverage in blogs such as TechCrunch.eu or Crowdfundinsider.com. Web entrepreneurs, we believe, are therefore likely to be early adopters able to exploit crowdfunding via their existing social and business networks. As such they require special support and focus, and their approach to problem solving within crowdfunding might be useful for other entrepreneurs later on.
5.3. Data Collection With regard to the data collection, we have identified a number of hurdles for implementing a data
collection & data distribution system. System implementation and maintenance requires significant
efforts and resources (infrastructure, developers, project management …). Interfacing with the data
collection system and providing the data also comes at a significant financial and opportunity cost for
most of the contributors (crowdfunding platforms). And, as data collection and data distribution
system providers engage with crowdfunding platforms they are creating competing redundant data
requests and risk of undue double-usage. A single data model and taxonomy does not exist and still
needs to be defined (see our work on the Taxonomy in this report). In the short term, manual
collection of heterogeneous data generates a very cumbersome data alignment, retreatment and
data verification burden. Moreover it creates incomparable datasets.
We see the only solution for enabling exhaustive, comparable and accurate data collection is to
define common data standards and models as well as to provide an eco-system that is incentivizing
the data remittance in a correct format and in timely manner. Our work has helped clarify a number
of actions in need to be carried out prior to implementation. There is a need to provide incentives,
financial resources, and guidelines for the data remittances from contributors (crowdfunding
platforms), provide incentives and specific mechanisms that will ensure exhaustive data gathering,
define the data model to be used in such a system (both for data collection and for data distribution),
carry out the implementation of the system and the data collection interfacing as a stand-alone
global project (with appropriate resources and objectives), provide a model that fosters all players
and enables private companies to be part of the economic model for data collection and data
distribution and define guidelines and standards for data usage.
5.3.1. An Economic model for Data collection and publication
We see a "Two-Tier" model for data collection and publication where crowdfunding platforms (or the
companies that do operate crowdfunding platforms) are required to contribute certain data to the
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XBRL (eXtensible Business Reporting Language) is a freely available and global standard for exchanging business information. XBRL allows the expression of semantic meaning commonly required in business reporting. The language is XML-based and uses the XML syntax and related XML technologies such as XML Schema, XLink, XPath, and Namespaces. One use of XBRL is to define and exchange financial information, such as a financial statement. The XBRL Specification is developed and published by XBRL International, Inc..
XBRL is a standards-based way to communicate and exchange business information between business systems. These communications are defined by metadata set out in taxonomies, which capture the definition of individual reporting concepts as well as the relationships between concepts and other semantic meaning. Information being communicated or exchanged is provided within an XBRL instance.
Early users of XBRL included regulators such as the U.S. Federal Deposit Insurance Corporation and the Committee of European Banking Supervisors (CEBS). Common functions in many countries that make use of XBRL include regulators of stock exchanges and securities, banking regulators, business registrars, revenue reporting and tax-filing agencies, and national statistical agencies.
A wiki repository of XBRL projects is available to be freely explored and updated.In 2010, the Securities and Exchange Commission(SEC) in the US, the United Kingdom's HM Revenue & Customs (HMRC), and Companies House in Singapore had begun to require companies to use it, and other regulators were following suit. The SEC's deployment was launched in 2010 in phases, with the largest filers going first: by 2013, the large foreign companies which use International Financial Reporting Standards (IFRS) were expected to submit their financial returns to the SEC using XBRL. In the UK in 2013, both HMRC and Companies House accepted XBRL in the iXBRL format. XBRL was also adopted by the Ministry of Corporate Affairs (MCA) of India for filing financial and costing information with the Central Government.
5.3.2. Open Call for Technology Providers
For the purpose of defining suitable tools and interested parties for a full-scale pilot, an Open Call for
Technology Partners was launched in January 2014. The aim of this call was to assess the technical
ability and willingness from market participants to implement a (near) real-time data collection and
publication system. This specific task was delegated and realised with the support the European
Crowdfunding Network AISBL. The ECN has published this Open Call and has asked its Directors to
disseminate the requirement in the market and, was also widely promoted on the Associations’
social networks. The call was also published and promoted via the project website.
The Open Call for Technology partners displayed no specific technical budget for maintenance or
implementation and detailed the required input as follows:
Data Collection
Data collection can be made with different technologies and with different level of
contributors’ agreements. There are mainly two technology enabling for data collection:
- API: Automatic data load
- File data load: Data load through data file (e.g. .csv file)
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crowdfunding. As this is a rather new and un-documented type of funding resources for
entrepreneurs this taxonomy should help the different stakeholders of the web and ICT industry to
define, foster actions and measure on them.
5.4.2.2. Who will be using the taxonomy?
Withstanding that it will be dependent on its actual refinement, integration and publication by the Directorate itself, different stakeholders will find the taxonomy useful:
The European Commission/Directorate General (DG)
Web entrepreneurs and ICT startups
Investors
Public bodies / Supervisors
5.4.2.3. How is the taxonomy going to be used?
We envision that the several different types of stakeholders will find the taxonomy useful in their activities. Different usages may be envisioned:
For the European Commission: Define and organize actions pertaining to crowdfunding in Europe according to the different users, market segments and sub-funding types defined. Carry further analysis to define the most likely path of action in order to foster favorable conditions for this new type of funding for web entrepreneurs.
For web entrepreneurs and ICT startups: Web entrepreneurs and ICT startups will find the taxonomy useful to define their own funding strategy. They can use the taxonomy as a way the refine action plans and define the most suitable market segment and funding source for their project. Once more data is available to them; web entrepreneurs may also define the specific investor’s requirements and market dynamics applying to their specific product and market segment. Another aspect of the taxonomy refers to the market opportunities in developing ICT activities when a particular data model and taxonomy is shared amongst a potentially large finance market such as crowdfunding.
For investors : Investors rely on both analysis and benchmarking when making an investment decision. Understanding the funding strategy of a particular project enables to define its inherent risks and potential returns. Combined with analytic capabilities and data, it can become a key tool for the financial investors.
For other public bodies / Supervisors / NGOs : Public Bodies need to base their analysis and actions on actual definitions applicable to the specific sector concerned. Crowdfunding has an impact on different types of activities including supervision, user’s interests, incumbent players associations … The taxonomy should enable them to define and monitor specific developments relevant to their agenda. For instance, a supervisor could seek to assess the usage (and compliance) of a particular type of funding in a specific market and draw actions depending on their findings.
5.4.2.4. What are the input sources for the taxonomy design?
The taxonomy design has relied mainly on (1) a high-level expert workshop and (2) expert input
gathered for the specific purpose of the taxonomy design. The iterative process of the taxonomy
building enabled both workshop participants and the advising board to provide input where
required. Please see section (2) for more details about the existing artifacts analysis for inputs.
Code Variable Label Level Unit Description / Meaning Recommended
restricted access
1CPTP Campaign type 1 Type of investment : List of
possible values Donations; Reward-Based; Equity; Debt; Other Financial ; Other
Non-financial No
1CPPP Campaign Period (planned) 1 Days Length in days during which the Crowdfunding campaign is
supposed to last (at the date of the launch) No
1CPPA Campaign Period (actual) 1 Days Length in days during which the Crowdfunding campaign has
actually lasted in reality. No
1CPTA Campaign Target 1 Euros Amount in Euros that is displayed as a target amount to raise on
the project. No
1CPTR Campaign Trigger 1 Euros Certain amount that will trigger the Fund transfer (See Variable "Amounts Transferred"). Per default is equal to the Campaign
Target, but can be different No
1CPAR Amounts raised 1 Euros Actual or pledged amounts from the contributor. The Variable "Amounts Transferred" defines whether the campaign is been
liquidated in to the benefit of the Entrepreneur / Company No
1CPAT Amounts transferred 1 Yes / No This is a proxy in order to define whether the campaign was
successful. No
1CPNI Number of investors / contributors 1 Number Number of contributors until campaign is closed (regardless of its
Detail : The type of support provided by a contributors into a specific project or product / services development initiative. It is defined regardless of the type of project holder it can be a
financial or non-financial support.
Value Code Label Description
P Donation Philanthropy based funding. The contributor does not expect a financial or tangible return on his financial support
R Reward-Based Funding based on the acquisition of a benefit that may be tangible of intangible. The reward has to be delivered by the project holder
(immediately or in the future).
E Equity Funding is provided against straight equity shares in a company, or a management entity.
D Debt Funding is provided against a debt claim on the company. The debt may carry interest or not.
O Other Financial Other types of funding including participative debt, convertibles debt, revenue sharing agreements, …
S Other Non-Financial Other types of support (marketing, field activities, work contribution, …) that does not involve an immediate or differed financial
contributions into a crowdfunding campaign. Remark : Some variables such as Amount may not apply for this type