SUSTAINABILITY Bart Walterus Partner, Advisory T : +32 (0)2 708 38 80 E : bwalterus1@kpmg.com
Crowdfunding is this the year for Belgium? Compared to other countries, Belgium is a slow starter. But the Belgian market is in a good position for this innovative approach to take off.
I
n 2013, KPMG Advisory conducted a study on behalf of the Flemish government looking at the global trends of crowdfunding and finding various policy options governments implement to stimulate this innovative way to finance start-up businesses. Crowdfunding provides a platform for start-ups or other types of organizations to look for financial support from ‘the crowd’ to fund a project. There are different forms of crowdfunding: sponsorships, reward-based, loan, equity. In some cases people donate money and receive a small reward like a cd, a concert ticket or a painting. Sometimes it operates more as a loan or a real investment with a market-based reward. The study showed that crowdfunding is also an efficient way to measure the marketability of a new project: if a lot of people are willing to invest in a project, it will be easier to convince professional investors and the market of the feasibility of the project.
Until now, crowdfunding has grown internationally by more than 60% ($2.8 billion in 2012). In Belgium it has been used to sponsor social or artistic projects, as well as to finance commercial projects. According to Bart Walterus, Head of Management Consulting at KPMG Advisory, “Crowdfunding is getting more popular in Belgium, but we are still behind other countries.”
euros through crowdfunding, the Netherlands 14 million. And Belgium? Less than 1 million. But going forward, Bart says that there is no reason for this innovative funding not to take off. In fact, the Belgian market is well placed for this opportunity. Crowdfunding, if well organized and promoted, can offer complementary funding.
The study showed that last year The Netherlands had 22 crowdfunding platforms and the UK 44. Belgium only had a few.
He adds: “Entrepreneurs have difficulties financing their business, especially when they are starting. On the other hand, Belgians have a lot Until now, of savings for which they hardly get any return crowdfunding on these days. Crowdfunding can help in bridghas grown internationally by ing the gap between those two economic realities: ‘the crowd’ can help to stimulate entrepremore than neurship and to create jobs.”
Other statistics provide clear indications of this lag. In 2012 the UK raised a value of 94 million
So perhaps now is the time for crowdfunding to grow in Belgium.
26 | The KPMG Difference | March 2014
60%