Trade associations around the globe form federation to support crowdfunding
WASHINGTON and TORONTO, Oct. 4, 2012 /PRNewswire-USNewswire/ -- Today crowdfunding associations in the United States, Canada, Nigeria, Australia, Israel, India and Brazil announced the formation of the World Crowdfund Federation (WCF). "We are very excited about this new development," said David Marlett, Founder and Executive Director of the United States' National Crowdfunding Association (NLCFA), adding, "We see many other countries soon to join, including the Scandinavian countries and Germany and the UK."
The NLCFA and a group of supporting crowdfunding associations around the world originated the concept of the WCF. "Once David lit the fuse, it just took off," said Craig Asano, Executive Director of the National Crowdfunding Association of Canada (NCFA Canada). "We are all not-for-profit organizations that promote crowdfunding in our respective countries. Through the WCF we will share resources and information, and provide mutual support to each other around the globe."
Though donation and reward-based crowdfunding is what has proliferated the globe in the past couple of years, it is the prospect of investment or equity crowdfunding that is all the buzz. Investment crowdfunding is already legal in Australia, Sweden, the UK, and other countries, and with the United States' JOBS Act it will be legal in the US in mid-2013. "Crowdfunding initiatives and industries are popping up around the world at remarkable speeds," said Baruch Levanon, Executive Director of the Israel Crowdfund Association. "We find increasing awareness to the potential of the crowdfunding mechanism among the financing and business community in Israel as well."
"Crowdfunding transcends all geographic and political boundaries."
From South America to Europe, government authorities, securities regulators, entrepreneurs and investors alike are 'moving mountains' to legally permit equity-based crowdfunding to support innovation, improve productivity, create new jobs and provide business communities with access to new channels of capital that previously have not existed. "Artists, filmmakers and now entrepreneurs of all kinds have really taken to the new idea of crowd-funding," said Abhishek Maitra, Executive Director of the National Crowdfunding Association of India (NCAI). "India has a huge pool of creative people but they lack a support system. This new approach may still be in a nascent stage in India, but its popularity is picking up."
"Crowdfunding transcends all geographic and political boundaries," added Asano of NCFA Canada. "There is a strong need for an international organization such as the WCF to facilitate a shared-resources network and forum where crowdfunding leaders from around the world can 'think globally' and then turn around, apply best practices, and 'act locally'."
A key mandate of the WCF is to host in rotating countries an annual gathering of all crowdfunding leaders in the world to put forward best-practices, standards, education and content, seek common legal structures, promote cross-border crowdfunding, and to serve and support one another in crowdfunding. Marlett, Founder of the WCF, stated, "The annual WCF event will be a tremendous opportunity for any for-profit crowdfunding entity to sponsor and expand its reach globally." He added, "The NLCFA is pleased to host the first such world conference next spring, in either New York or Washington DC."
The WCF represents all forms of crowdfunding including donation, reward, pre-purchase, peer-to-peer lending and investment-based. It will remain neutral and serve to promote collaboration, networking, sharing and support through its affiliated members. Funding will be derived from affiliation dues and for-profit sponsorships. The leadership structure of the WCF is comprised of a rotating governing board comprised of association leaders in affiliated countries. Leadership seats rotate every two years. The founding Board of Governors can be seen on the WCF website.
About the World Crowdfund Federation
The purpose of the World Crowdfund Federation (WCF) is to promote crowdfunding worldwide by sharing resources and information and providing mutual support among national and regional crowdfunding associations across the globe. The WCF is neutral and will not serve to promote a particular brand or any one individual's private enterprise, other than to state the funding sponsors of the WCF. Affiliate groups must be not-for-profit- trade associations (or the like) serving the interests of all crowdfunding stakeholders in their geographic or political areas. For more information please visit www.WorldCrowdfund.org.
About the National Crowdfunding Association - United States
The National Crowdfunding Association (NLCFA) was formed in March 2012, just prior to the passage of the JOBS Act of 2012 authorizing investment crowdfunding in America. The NLCFA provides its members with opportunities to shape the industry, learn the details of the marketplace, become certified and stay informed and ahead in this dynamic industry. The mission of the NLCFA is to support, educate, and protect the American crowdfunding market. The NLCFA currently has over 600 members and represents all sides of the crowdfunding transaction, including the investors, entrepreneurs, and those who serve the industry, whether donation-based or equity-based. For more information please visit www.nlcfa.org.
About the National Crowdfunding Association of Canada
The National Crowdfunding Association of Canada (NCFA Canada) was formed in September 2012, to fill a need to unify a national crowdfunding voice for all industries, stakeholders, and associations in Canada. The NCFA Canada offers its members advocacy, education, support and the ability to network and connect with leaders in the crowdfunding space enabling them to plug into a 'National Crowd' and remain informed in an exciting and rapidly evolving industry. The NCFA Canada holds an independent position with membership open to the general public including interested parties such as entrepreneurs, investors, lawyers, technologists, financial advisors, regulators, educators, students and media professionals. For more information please visit www.ncfacanada.org.
SOURCE National Crowdfunding Association