New Ways of Fundraising

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Slava Rubin (founder of indiegogo) starts the session with an introduction to indiegogo. Indiegogo is more than a money lending/donating platform but it's also about the idea behingdevery project, the ease of receiving feedback, testing, marketing and branding instead of focusing on the funding process alone. Campaigns are decentralized and can be carried out globally by global citizens, e.g in the case of Turkey. The idea that technology helps to democratize anything can now be applied to banking and money as well. After the introduction the panel discussion starts with Raffael Johnen (Auxmoney, a platform to provide consumer loans), Philipp Moehring (AngelList, a venture capitalist company), Slava Rubin (indiegogo, a crowdfunding platform) and Simon Levene (Enlightenment Capital), who moderates the panel. Simon asks the question what is different in how the Internet changes financing. For Raffael with technology there is a more efficient way to improve crowdlanding and allocate money to the people who need it with a better lending interest rate. On Auxmoney their average interest rate is 9% and the average return for investors has been 6%. For Slava it is also not about cannibalizing the existing market but growing the whole market. Anyone can decide now and the utlilization of banking has been going from centralized to every person being able to be a bank. Slava mentions that there are in general 4 reasons why people fund something: passion,perks, participate and/or profit. All three platforms allow different things to happen and target the specific interest of every individual funder. Simon continiues with the question: If you were not running your own business today and you have to choose another crowdfunding site to run, which one would you choose and why? Slava would go into the area of finance or education. Philipp would prefer education and the possibility of giving everyone the chance to get money, hence Auxmoney attracts him and Raffael would choose AngelList. The last question deals with whether government is a help or a hinderance and how the regulatory environment is? In Germany the government stays out of crowdfunding projects, which is a blessing and a curse as well, for Raffael. For large investments there are more regulations but in Europe there is more deregulation and new legal improvements in that area. Slava ends with the questions to the audience why should only the government adecide where the taxpayer's money goes, because its your taxpayer money. One should have a right to decide on how the taxes are allocated.

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