On September 28, 2017 the Dutch Caribbean Securities Exchange (DCSX) presented at the Access to Finance Conference hosted by Connecting the Dots. Our presentation consisted of the interesting topic of Crowdfunding and the financing possibilities at the DCSX.
Crowdfunding is the practice of funding a project or venture by raising many small amounts of money from a large number of individuals. Crowdfunding makes use of the easy accessibility of vast networks of people through Social Media & Crowdfunding websites to bring investors & entrepreneurs together. It has the potential to increase entrepreneurship by expanding the pool of investors beyond the traditional circle of owners, relatives and Venture Capitalists. Furthermore, it has created the opportunity for entrepreneurs to raise hundreds of thousands or millions of dollars from anyone who has money to invest.
Finally, Crowdfunding provides a forum to anyone with an idea to pitch it in front of waiting investors. Investors can select from a hundreds of projects and invest as little as $10. Crowd funding sites generate revenue from a percentage of the funds raised.
What are the benefits if we would have a well organized crowdfunding platform with different types of crowdfunding projects? In this respect think about the following:
- Entrepreneurs can get funds for their business idea(s)
- Not only entrepreneurs can benefit from this, artists, event managers, the government etc. Basically anyone can use it, as long as they have a great idea. For instance, the Curacao North Sea Jazz Festival would have definitely received support if there was a Crowdfunding platform on the island or if a foreign platform was used.
- Foundations on the island will have an innovative tool, Donation-based crowdfunding, to get funds in order to fulfill their responsibilities.
- Reward-based crowdfunding can be used a great marketing tool for business.
- Debt-based crowdfunding (or Lending-based crowdfunding) can be an alternative when people get rejected for a loan application at the bank.
The world of Crowdfunding and the DCSX. Can they work together?
The answer is yes, projects of the crowdfunding at a later stage can be listed on the DCSX giving the donors the opportunity to sell their investment or in other words providing them liquidity.
After the presentation DCSX participated in a very dynamic panel discussion. The DCSX is happy to contribute with initiatives such as Connecting the Dots that help local businesses grow.