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Issue 4 December 2015 CASI: Project description PROJECT TITLE: Public Participation in Developing a Common Framework for Assessment and Management of Sustainable Innovation (CASI) COORDINATOR: ARC Fund, Bulgaria: Zoya Damianova. CONSORTIUM: The CASI consortium consists of 19 partners representing 12 European countries. Country correspondents extend the reach to all EU-28 countries. FUNDING SCHEME: Coordination and support action, funded under the 7th Framework Programme of the European Community, SCIENCE-IN-SOCIETY-2013.1.2 Crowdfunding in Sustainable Innovation Insights from and for Austria INNOVATION TAKE UP AND FINANCING The take up of innovative services and products has contributed to creative thinking also in new sources of financing. Innovation processes are characterised by constant development, and it is beneficial if models of financing can be aligned to that. Crowdfunding, i.e. collecting finance from publics, has emerged as a new alternative also in the field of sustainable innovation. Crowdfunding is particularly interesting for Small and Medium size companies (SME’s) looking for financing when their product or service is not considered quite ready for investments. CROWDFUNDING FOR SME’S Crowdfunding may respond to SME’s needs in the absence of bank finance, venture capital or initial public offerings (IPO). Crowdfunding could contribute to bridging the finance gap for small firms and innovative projects, provide better access to finance for small businesses and promote entrepreneurship towards growth and job creation. GROWING POTENTIAL AND NUMEROUS PLATFORMS Crowdfunding is a large and rapidly growing business, with a volume of 16.2b$ in 2014 which is estimated to double to 34.4b$ in 2015 (Massolution 2015). Investments in Europe are estimated at 945 m€ across hundreds of platforms. Prevalent practices in crowdfunding and popular crowdfunding sites with programmes for sustainable innovation (cf. Crowdfunding.com 2015) provide alternatives to Commission funding schemes such as COSME (planned budget of 2.3b€ for 2014-2020) and Horizon 2020’s SME instrument (about 3 b€ for 2014-2020). CROWDFUNDING AS A SERIOUS ALTERNATIVE This policy brief looks at how crowdfunding relates to sustainable innovation. It introduces crowdfunding as an activity, discusses it in relation to sustainable innovation and looks at the development of crowdfunding in Austria. This policy brief looks at crowdfunding from several levels: strategic, programmatic and operational case level. CROWDFUNDING IN AUSTRIA While the European crowdfunding volume is increasing and it is becoming an important source of capital for start-ups and SMEs, the Austrian market for alternative financing is rather small. Different platforms exist for crowd-donation, crowd-sponsoring as well as crowdinvesting but the total volume is still below the European average. In 2014 Austrian platforms helped to raise a total of 3.6 Mio. Euro which equals 0.4 Euro per capita. For comparison, the European average is about 2.1 Euro per capita. Even though the legal framework for crowdinvesting was changed in summer 2015, experts don’t think that the alternative financing market will grow substantially during the next years. The CASI project has received funding from the European Union’s Seventh Framework Programme for research, technological development and demonstration under grant agreement no 612113

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Page 1: Crowdfunding in Sustainable Innovation · practices in crowdfunding and popular crowdfunding sites with programmes for sustainable innovation (cf. Crowdfunding.com 2015) provide alternatives

Issue 4 December 2015

CASI: Projectdescription

PROJECT TITLE:Public Participation inDeveloping a CommonFramework for Assessmentand Management ofSustainableInnovation (CASI)

COORDINATOR:ARC Fund, Bulgaria: ZoyaDamianova.

CONSORTIUM:The CASI consortium consistsof 19 partners representing12 European countries.Country correspondentsextend the reach to all EU-28countries.

FUNDING SCHEME:Coordination and supportaction, funded under the 7thFramework Programme of theEuropeanCommunity,SCIENCE-IN-SOCIETY-2013.1.2

Crowdfunding in SustainableInnovation

Insights from and for Austria

INNOVATION TAKEUP AND FINANCING

The take up of innovative services and products has contributedto creative thinking also in new sources of financing. Innovationprocesses are characterised by constant development, and it isbeneficial if models of financing can be aligned to that.Crowdfunding, i.e. collecting finance from publics, has emergedas a new alternative also in the field of sustainable innovation.Crowdfunding is particularly interesting for Small and Mediumsize companies (SME’s) looking for financing when their productor service is not considered quite ready for investments.

CROWDFUNDINGFOR SME’S

Crowdfunding may respond to SME’s needs in the absence ofbank finance, venture capital or initial public offerings (IPO).Crowdfunding could contribute to bridging the finance gap forsmall firms and innovative projects, provide better access tofinance for small businesses and promote entrepreneurshiptowards growth and job creation.

GROWINGPOTENTIAL ANDNUMEROUSPLATFORMS

Crowdfunding is a large and rapidly growing business, with avolume of 16.2b$ in 2014 which is estimated to double to34.4b$ in 2015 (Massolution 2015). Investments in Europe areestimated at 945 m€ across hundreds of platforms. Prevalentpractices in crowdfunding and popular crowdfunding sites withprogrammes for sustainable innovation (cf. Crowdfunding.com2015) provide alternatives to Commission funding schemes suchas COSME (planned budget of 2.3b€ for 2014-2020) and Horizon2020’s SME instrument (about 3 b€ for 2014-2020).

CROWDFUNDING ASA SERIOUSALTERNATIVE

This policy brief looks at how crowdfunding relates tosustainable innovation. It introduces crowdfunding as an activity,discusses it in relation to sustainable innovation and looks at thedevelopment of crowdfunding in Austria. This policy brief looksat crowdfunding from several levels: strategic, programmaticand operational case level.

CROWDFUNDING INAUSTRIA

While the European crowdfunding volume is increasing and it isbecoming an important source of capital for start-ups and SMEs,the Austrian market for alternative financing is rather small.Different platforms exist for crowd-donation, crowd-sponsoringas well as crowdinvesting but the total volume is still below theEuropean average. In 2014 Austrian platforms helped to raise atotal of 3.6 Mio. Euro which equals 0.4 Euro per capita. Forcomparison, the European average is about 2.1 Euro per capita.Even though the legal framework for crowdinvesting waschanged in summer 2015, experts don’t think that thealternative financing market will grow substantially during thenext years.

The CASI project has received funding from the European Union’s Seventh FrameworkProgramme for research, technological development and demonstration under grant agreement

no 612113

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CASI POLICY BRIEF Issue 4

The CASI project has received funding from the European Union’s Seventh Framework Programme for research, technological developmentand demonstration under grant agreement no 612113

Introduction

NEW SOURCES OF FINANCING ONTHE RISE

The processes of innovative service and product development are characterised byconstant evolution, and it would be beneficial if models of financing can be alignedto that. Crowdfunding, i.e. collecting finance from the public, has emerged as a newalternative also in the field of sustainable innovation. Crowdfunding is particularlyinteresting for Small and Medium size companies (SME’s) looking for financing whentheir product or service is not considered quite ready for investments, which showsthe limits of private equity (PE) and venture capital (VC) schemes.

ALTERNATIVE TYPES OFFINANCING ARE ENDORSED BYTHE EUROPEAN COMMISSION

The European Commission has during the last 30 years built paths towards researchexcellence through different Framework Programmes that further strengthencrossborder cooperation. These synergies have led to the convergence of theobjectives of the two, with the solutions of Europe’s societal challenges deliveredthrough the current Horizon 2020 Programme. Bank loans, hybrid and mezzanine,grants, PE and VC – and crowdfunding – complement financing innovation in Europe.Indeed, the European Commission supports and endorses alternative types offinancing and is making an effort towards establishing the environment, conditionsand the policy framework, in which the envisioned measures would succeed inimproving the access to finance for R&I projects and further strengthening ofinnovation-driven SME ecosystem and the value chain.

CROWDFUNDING FOR SME’S

In the context of SME’s finance value chain, crowdfunding may respond to theirneeds in the absence of bank finance, venture capital or initial public offerings (IPO).Crowdfunding could contribute to bridging the finance gap for small firms andinnovative projects, provide better access to finance for small businesses andpromote entrepreneurship towards growth and job creation.

CROWDFUNDING MODELS

Typically, a crowdfunding project is initiated on an internet platform, which supportsthe main mechanism of crowdfunding: collecting funds from a large number ofcontributors, online investors, sponsors or donors to fund for-profit or non-profitinitiatives or enterprises. Crowdfunding raises capital for new projects andbusinesses by soliciting contributions from a large number of stakeholders followingthree main types of crowdfunding models: (1) donations, philanthropy andsponsorship, where there is no expected financial return, (2) lending and (3)investment in exchange for equity, profit or revenue sharing.

CROWDFUNDING AS A SERIOUSALTERNATIVE

This policy brief looks at how crowdfunding relates to sustainable innovation fundingactivities. It introduces crowdfunding as an activity, discusses it in relation tosustainable innovation and looks at the development of crowdfunding. This policybrief looks at crowdfunding from several levels: strategic, programmatic andoperational case level.

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CASI POLICY BRIEF December 2015

The CASI project has received funding from the European Union’s Seventh Framework Programme for research, technological developmentand demonstration under grant agreement no 612113

OVERALL PICTURE

Crowdinvesting in Austria

During the last years, crowdinvesting has been subject of broad public discussion inAustria. Starting point was the case of a SME whose founder got prosecuted andfined by the Austrian Financial Market Authority (FMA) after raising money toincrease his production capacity. This debate ultimately led to passing of a specificcrowdinvesting act (Alternative financing act - Alternativ-finanzierungsgesetz AltFG)and to an alteration of the existing capital market act (Kapitalmarktgesetzes KMG) insummer 2015. The Alternative financing act specifically addresses crowdinvesting.

PROTECTING INVESTORS

The aims of these two legislations are twofold. On one hand it strives to increase theinnovative potential of crowdinvesting for start-ups and on the other hand it intendsto protect the investors. In order to achieve this protection, the act secures aminimum of transparency and investor protection through defining information andpublication requirements for issuers as well as for operators of crowdfundingplatforms. Both issuers and platform operators have to prevent and are liable formisuse of crowdfunding for criminal or terroristic purposes and money laundering.Additionally, the act intends to protect private investors of financial problems as aconsequence of a possible loss, by limiting the potential investment to 5,000 Europer year and company.

INCREASING THE LEVERAGE

The legal framework for raising funds as defined in the capital market act has beenaltered to reduce costs and liability risks. The aim of that change is to increase thefinancial potential and the economic impact of crowdinvesting on innovativestart-ups. The existing prospectus requirement threshold of the capital market actwas raised from 250,000 Euro to 1.5 Mio. Euro for crowdfunding activities only.Through the implementation of graduated information system and a reducedprospect requirement for crowdinvestments between 1.5 and 5 Mio. Euro, biggerfund raising campaigns are possibly without the strict capital market prospectus.

MISSION

A platform for sustainable innovationsThe Green Rocket

Several different platforms are active on Austria’s crowdfunding market. However,there is just one platform that is specialised on sustainable crowdinvesting – thehttps://www.greenrocket.com. Green Rocket itself states that it is the only Europeancrowdfunding platform specialised on crowinvesting campaigns for businesses ideasfor sustainable projects in the future topics energy, environment, mobility andhealth. Green Rocket is hosting crowdinvesting campaigns for start-ups, first-stagebusiness and for established firms. Their mission is to discover and push the beststart-ups and business in the field of sustainable innovation.

An investor taking part in a Green Rocket campaign gets participation rights whichcan be sold at the end of every year. If the company is sold the investors areparticipating. Nevertheless, a total loss is always possible if a company is failing. Inorder to prevent such an event, the Green Rocket team is examining the projectsbefore they launch a funding campaign.

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CASI POLICY BRIEF Issue 4

The CASI project has received funding from the European Union’s Seventh Framework Programme for research, technological developmentand demonstration under grant agreement no 612113

PROJECT EXAMINATION

The Green rocket team, consisting of three full-time and three part-time employees,is carrying out an examination procedure for the business plans before a fundingcampaign starts. For this purpose they are cooperating with industry experts andother companies active in the corresponding field. During this procedure theyanalyse the business plan, interview the founders or managers, examine, if theyexist, the balance sheets of the last two to three years, and discuss the ordersituation, sales, cooperation partners, patents, follow-up financing as well asimportant milestones for further market development. Because of this strictexamination procedure the platform was the first European crowdinvesting platformawarded with the e-commerce quality mark Euro-Label.

MONEY RAISED

The platform was founded in 2013 and is itself still in a start-up phase. In 2013 oneproject, the sunnybag was funded via a Green Rocket campaign with a totalinvestment of nearly 160.000 Euro. In 2014 seven projects were funded with aninvestment sum of 1.12 Mio. Euro. The project Quantum Voltaics was the firstcrowdinvesting project reaching the old legal funding limit of 250,000 Euro and insummer 2015 the second Omi’s Apfelstrudel campaign is the first one to exceed thissum under the new legal framework.

FUNDED PROJECTS

Among the funded projects are the sunnybag, a bag with an integrated solar panelwhich can be used for charging mobile phones. Quantum Voltaics is trying toincrease the efficiency of solar panels through a special nanocoating. TyrolerGlückspilze is producing organic mushrooms in Austria, where 95% of themushrooms are imported from China. Hydroconnect developed a fish-lift that isproducing electricity. Omi’s Apfelstrudel is a juice that tastes like apple-strudel andjust uses organic, Styrian apples. ab&cd innovations developed a technology for theconversion of glycerol, a by-product of biodiesel production, into lactic acid andthrough a Green Rocket campaign they were collecting funds for their pilot plant.

THE INNOVATION

Raising funds for a sustainable innovationThe case of ab&cd innovations

As mentioned above, one of the businesses that were raising funds on the GreenRocket platform is ab&cd innovations. The start-up, located in Vienna, developed atechnology for the conversion of glycerol, a by-product of biodiesel production, intolactic acid. The process is especially developed for application in biodieselproduction plants. It can even be integrated into existing production facilities andenables biodiesel producing companies the exploration of a new sector: the risingmarket of lactic acid. Due to the use of crude glycerol for the chemical fabrication ofDL-lactic acid, the use of starch containing food crops can be avoided.

NEXT STEPS

The procedure is well-developed on a laboratory scale. ab&cd innovations received apatent for the so called Glycerlax method and applied for another. At the momentthe focus of work is to optimise the process in terms of economic feasibility andscale-up. Based on these results a pilot plant will be built to test the procedure on anindustrial scale. After the end of the pilot phase, which is scheduled for 2016, theimplementation on industrial level is planned. The pilot plant is partly financed bythe crowedinvesting campaign the company ran in summer 2015.

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CASI POLICY BRIEF December 2015

The CASI project has received funding from the European Union’s Seventh Framework Programme for research, technological developmentand demonstration under grant agreement no 612113

THE PILOT PLANT

The total costs for the pilot phase amount for nearly one million Euro and includematerial costs for the pilot plant, operating costs, staff costs and costs for patentingand legal advice. The calculated costs will be covered by seed finance capital fromAWS, the Austrian federal development and financing bank, and by a crowdinvestingcampaign launched on Green Rocket in summer 2015. In this campaign ab&cdinnovations was able to raise 117,250 Euros from 140 different investors. After a fewweeks the start-up was exceeding the funding threshold of 70.000 Euros but was notable to reach the old funding limit of 250.000 Euro. Nevertheless, the funds receivedfrom the seed finance capital and the crowedinvesting campaign is enough to testthe Glycerlax method in the planed and now financed pilot plant.

POLICY LAGS BEHIND BUSINESS

European policy perspectives on crowdfunding

Crowdfunding is prevalent in Europe at strategic, programmatic and operationalpolicy levels. Strategic policy lags behind business operations. Crowdfunding inEurope is next discussed based on relevant and representative policies and casescollected by CASI partners and country correspondents.

RISING ON THE POLICY AGENDA

Crowdfunding has attracted strategic policy attention in a number of Europeancountries. Attention has been paid to which acts cover the topic of crowdfunding,but crowdfunding, nevertheless, does not have a key position on all national policyagendas. Finland is expected to adopt the first crowdfunding act in Europe in 2016.Other focused strategic activities relating to crowdfunding include promoting acts onalternative financing (Austria), decree with associated labelling (France), classifyingcrowdfunding as collaborative funding (Portugal), and public consultation onforthcoming regulation (UK).

PLATFORMS FOR SUSTAINABLEINNOVATION

There are crowdfunding platforms widely across Europe. This indicates that there isgrowth potential for crowdfunding on European, national and local markets. Theplatforms described in Appendix 1 have established connections to sustainableinnovation. The reviewed cases include platforms specialised in sustainability (suchas Green rocket in Austria, Green Hero in Bulgaria, Wiseed and MiiMOSA in France,ECOCROWD in Germany, Abundance Generation in UK), while most platforms are ofgeneral nature that are being used also for sustainable innovation projects.

WIDE RANGE OF INNOVATIONCASES

Collected sustainable innovation cases in Appendix 1 showcase that crowdfundinghas potential across a wide range of sustainable innovation. Examples of projectsusing crowdfunding range from renewable energy solutions such as solar energyand wind power technology to industrial services in terms of waste and mobility,consumer products as packaging and designer clothing, as well as sustainableaquaculture, botanical garden and window gardening.

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CASI POLICY BRIEF December 2015

The CASI project has received funding from the European Union’s Seventh Framework Programme for research, technological developmentand demonstration under grant agreement no 612113

A LEGAL FRAMEWORK

AUSTRIA IN EUROPEAN PERSPECTIVE

With the adoption of the alternative financing act the Austrian government definedthe framework for crowdfunding activities and set the foundation to better exploitthe potential this tool has for financing innovative ideas. The increased fundinglimits will help businesses to apply this financial instrument in an effective manner.As this legal framework is among the first ones adopted in Europe it could set anexample for other countries trying to define a structure for crowdfunding.Nevertheless, the total volume of money raised is rather low in Europeancomparison and it is definitely too early to say if the new framework will help tochange this situation. Especially, as experts are rather pessimistic in this regard.

A PLATFORM FOR SUSTAINABLEINNOVATIONS

In European comparison platforms specialised on sustainable innovation areexceptional. With the Green rocket an Austrian crowdinvesting platform specialisedon campaigns for sustainable innovations exists and is expanding quickly. Theplatform was only founded in 2013 and in this first one and half years in business ithas helped eight companies to raise money for sustainable innovations. The moreprojects get successfully funded and are able to expand their business like forexample Omi’s Apfelstrudel, the more inspiration is provided for other potentialentrepreneurs.

BUT NO INVESTORS

In summary, Austria in European comparison has new and clear framework forcrowdinvesting and a platform specialised in sustainable innovation which itself isstill in a start-up phase. So the overall conditions for crowdfunding of sustainableprojects are rather good. Nevertheless, the total amount of money invested incrowdfunding campaigns remains well below the European average.

EVALUATE THE IMPACT OF THENEW FRAMEWORK CONDITIONS

RECOMMENDATIONS FOR POLICYMAKERS INAUSTRIA

As the alternative financing act is only a few months old, it is too early to assess itsimpact on crowdfunding in general and on sustainable innovation in particular. Itmight be a powerful tool to foster economic growth in times of low interest rates andcredit crunch but Austrian investors are rather conservative and the question if thislegal framework will develop its full potential is unclear yet. We would recommendevaluating the impact of this new legal framework within a period of one to threeyears. Key questions for such an evaluation would be if the framework is designed ina way to enable start-ups and SMEs to fund their projects via the crowd in aneffective manner and if the total investment remains low, what the barriers forcrowdfunding are from the investor side.

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CASI POLICY BRIEF December 2015

The CASI project has received funding from the European Union’s Seventh Framework Programme for research, technological developmentand demonstration under grant agreement no 612113

Further Reading and References:

Tregner-Mlinaric, Anita, Petteri Repo and Kaisa Matschoss (2015), Crowdfunding in sustainable innovation. CASI Policy1.Briefs. CASI-PB-6.2015 EUROPE. www.casi2020.euBundeskanzleramt online (2015), Alternativfinanzierungsgesetz u.a. – beschlossene Neuerungen2.https://www.help.gv.at/Portal.Node/hlpd/public/module?gentics.am=Content&p.contentid=10007.163630Börse Express online (2015), Crowdinvesting-Plattform Green Rocket erhält Euro-Label3.http://www.boerse-express.com/pages/1462763Format online (2015), Die Wahrheit über Crowdfunding4.http://www.format.at/finanzen/wahrheit-crowdfunding-5528129Futurezone online (2015a), Österreich hinkt bei boomendem Crowdfunding hinterher5.http://futurezone.at/b2b/oesterreich-hinkt-bei-boomendem-crowdfunding-hinterher/116.243.994Futurezone online (2015b), Crowdfunding-Gesetz:6.http://futurezone.at/thema/start-ups/crowdfunding-gesetz-oesterreich-ist-vorreiter/127.919.588#section-127949499Geldmarie online (2015), Green Rocket Crowdinvesting7.http://www.geldmarie.at/aktien/crowdinvesting-bei-green-rocket.htmlGreen Rocket online (2015), ab&cd innovations - Shaping the sustainable future8.https://www.greenrocket.com/investmentchancen/abcd-innovationsHeinrich Staudinger GmbH online (2015), Press Releases http://w4tler.at/fma-vs-gea/pressemeldungen9.Parlament online (2015), Alternativfinanzierungsgesetz – AltFG10.http://www.parlament.gv.at/PAKT/VHG/XXV/ME/ME_00116/imfname_398663.pdfWirtschaftskammer Österreich (2015), Crowdfunding für österreichische Unternehmen11.https://www.wko.at/Content.Node/Service/Unternehmensfuehrung--Finanzierung-und-Foerderungen/Unternehmensrechnung/Finanzierung/Crowdfunding_fuer_oesterreichische_Unternehmen.html

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CASI POLICY BRIEF Issue 4

The CASI project has received funding from the European Union’s Seventh Framework Programme for research, technological developmentand demonstration under grant agreement no 612113

CASI Project Description

CASI: PROJECT DESCRIPTIONPROJECT TITLE: Public Participation in Developing a Common Framework for Assessment andManagement of Sustainable Innovation (CASI)COORDINATOR: ARC Fund, Bulgaria: Zoya Damianova.CONSORTIUM: The CASI consortium consists of 19 partners representing 12 European countries.Country correspondents extend the reach to 28 countries.FUNDING SCHEME: Coordination and support action, funded under the 7th FrameworkProgramme of the European Community, SCIENCE-IN-SOCIETY-2013.1.2-1.DURATION: 42 months, 1/2014-6/2017BUDGET: 4.5 M€, 428 person monthREFERENCE: Philipp, Stefan; Matschoss, Kaisa; Repo, Petteri; Tregner-Mlinaric, Anita (2015). CASI policy brief:Crowdfunding in sustainable innovation. Insights from and for Austria.WEBSITE: www.casi2020.euEDITORIAL BOARD 2015: Applied Research and Communications Fund: Ventseslav Kozarev; Poznan Science andTechnology Park of Adam Mickiewicz University Foundation: Malgorzata Piotrowicz, Kamila Dobek, Jakub Betkowski;Technical University of Dortmund: Jürgen Schultze; Coventry University Enterprises Limited: Soizic Tsin, AlbaAvarello, Lindsey Martin, Sarah Barsby.

Contacts

Name and Surname: Stefan PHILIPPOrganisation: Centre of Social Innovation (ZSI)E-mail: [email protected] of the organisation: Zentrum für soziale Innovation, Linke Wienzeile 246, 1150 Vienna, Austria

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Appendix 1 Crowdfunding in Sustainable Innovation in selected countries.

Policy name Description Sustainability Publicparticipation Observation

AUSTRIAAlternative financing act Alteration of legal frameworks for

crowdinvesting, that strives toincrease the economic potential ofcrowdinvesting and intends to protectthe investors

The increased sum for investment limits forcrowdfunding campaigns could have apositive impact on sustainable innovations

Austrian socialpartners wereinvolved in thedrafting of the newlegislation

The old funding limitgot exceeded onlyweeks after the newlegislation came intoeffect

Green Rocket A crowdfunding platform specializedon sustainable projects

Impact on sustainability through financialresources

Participation ofpublic throughfunding. Peopleselect projectsthey invest in

More than tensustainable projectsgot funded via theplatform

ab&cd innovation Producing raw materials fromindustrial waste

The business plan has a direct effect on theconsumption of resources

A total of 140different peopleinvested in thecompany

BELGIUMDigital Belgium Strategyembraces fiscalregulations forcrowdfunding

The strategy embraces fiscalregulations for crowdfunding

If the regulations are attractive and clear forentrepreneurs, the strategy could have apositive impact in terms of sustainability.

/ Regulations shouldenhance awarenessand attractiveness ofcrowdfunding.

Crowdfunding Gent A local crowdfunding platformsupported by the city administration ofGhent

Projects stimulate local entrepreneurship,are societal relevant, contribute to solutionsfor urban challenges, respect the principle ofequality, are innovative, are sustainable andare creative.

The platformtargets bothentrepreneurs andcitizens from thecity of Ghent andsurrounding areas.

The platform‘crowdfunding Ghent’allowed therealization of already16 projects that intotal reached 659citizens and raised€40.519

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Policy name Description Sustainability Publicparticipation Observation

Content Content is a waste-free grocery storein Leuven

Less packaging means a lower cost, lesswaste of energy and resources and lesspollution. By selling local products, Contentsaves transport costs. Further, Content is acozy place where you can meet neighbors.

Content usesequity-basedcrowdfunding.Funders become astakeholder of thecooperative.

During the initialcrowdfundingcampaign, 120people invested inContent whichresulted in a totalamount of €4.866.

BULGARIAGreen Hero A crowdfunding platform operating

with projects and partners from allover the globe. It allows users to postprojects with carbon mitigation impacton certain communities or areas,whereas these can be funded byraising funds from other users. Theplatform provides a calculator to helpusers find out how much CO2 theyhave offset.

The initiatives financed through the platformaim to reduce negative environmentalimpacts in local communities and oftensupport local communities. In order to besustainable in the long-run, however, theteam working on the platform needs toconstantly promote it and raise awarenesson the benefits of financing the respectiveinitiatives.

The platform isstronglydependent onengaging thepublic - both inorder to raisefunds for theinitiatives itsupports, as wellas in order topromote theplatform throughsocial networks orother online tools.

N/A

TrashBack The crowdfunded initiative aims toimprove waste management andcollection in impoverishedcommunities. Citizens can bringrecyclable materials to a central depot,where they earn ’tBucks’ (coupons)per weight of recyclables. The ’tBucks’can be used for buying certain food orclothing.

The initiative promotes environmental andsocial sustainability through its activities. Onthe one hand, it aims to reduceenvironmental impacts from waste collectionand increasing recycling in the local areas;on the other hand it supports local producersthrough stimulating those who earned’tBucks’ to buy local products.

The initiativeengages citizensfrom the localcommunities incollectingrecycable waste,which can increasetheir awareness onthe environmentalimpacts of waste,and thus empowerthem to act locallyto addressenvironmentalissues.

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Policy name Description Sustainability Publicparticipation Observation

CROATIAEnergy independentschool in Kastel Luksic

With the assistance of local partnersand UNDP, Primary school Ostrogco-founded an energy cooperative andlaunched a crowdfunding campaign onthe Indiegogo platform. They raisedUSD 10000 in 2014 and built a solarphotovoltaic power system on the roofof the school. The electricity generatedby the system will make the schoolenergy independent and also generaterevenues that can be used to installenergy-efficiency lighting and fundeducational projects.

There is a small direct impact onsustainability through energy independenceand a potentially larger impact throughchanging attitudes and behavior of pupils,local community and other stakeholders.

The project wasbased on publicparticipation andmobilization, andincluded setting upthe Kastela EnergyCooperative. Thecampaign to makethe school energyindependententailed a changein behavior andrelationships ofschoolstakeholders, aswell as anextension of thestakeholdernetwork.

The success of thiscrowdfundingcampaign helped inspreading knowledgeabout crowdfundingand facilitated futureinitiatives.

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Policy name Description Sustainability Publicparticipation Observation

Ebanka Ebanka (ethical bank) is a sociallyinnovative project in the field offinance, which aims to focussimultaneously on economic, socialand environmental criteria. Ebanka isexpected to start operations in 2016.The owner of Ebanka is theCooperative for Ethical Finance, whichcomprises companies, publicadministration bodies, foundations,NGOs and citizens, all of whom haveprovided capital and will use theservices of Ebanka. Members of thecooperative have been recruitedthrough a specific form of equitycrowdfunding - instead of using aninternet platform, the Ebanka teamhas been presenting and promotingthe project all over Croatia to differentstakeholders, many of whom havedecided to join the project. Moreover,Ebanka plans to use crowdfunding as asource of finance for some of theprojects it will finance (in addition toequity, debt, EU grants and financialinstruments etc.).

Ebanka has been developing new financingand business models, with a focus on organicagriculture, sustainable manufacturing,renewables, IT services, new technologiesand innovations, environmental protectionand social entrepreneurship. The bank willfocus on financing of projects that contributeto environmental and social sustainability.

The project hasbeen developedthrough acooperativeprocess based onparticipation of awide network ofstakeholders frompublic, private andcivil sectors.

CYPRUSSo far no national-levelpolicy measures havebeen implemented toregulate crowdfundinginitiatives

No Policy measures have beenintroduced.

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Policy name Description Sustainability Publicparticipation Observation

Innovation FundingWebsite

The website aims to aggregate andoffer easy access to availableinformation about funding schemes,policies and events, as well as anyrelevant documents, people to contactwith and other websites that are usefulfor applicants.

The website attempt to facilitate the firststeps of crowdfunding and crowdsourcing inCyprus by enabling interested people topresent their innovative ideas to get funded,or fund ideas of others that find interestingand innovative (crowdfunding), and also byenabling the process of obtaining neededservices from an online community, ratherthan from traditional employees or suppliersin Cyprus (crowdsourcing).

Until now publicparticipation islimited

Although the site iseasily accessible andusable, a furtherpublic awarenessshould be done,about the advantagesand the risks of thecrowdfunding.It isnecessary to provideinformation to allstakeholders, andcreate of a widernetwork both locallyand internationally.

We Hug A cause We Hug A Cause is a Crowdfundingplatform in Cyprus serving anyone inthe world with a cause. Its supportindividuals with innovative ideas,start-ups, artists, entrepreneurs,organizations, bi-communal projectsand people who have a cause in life tohelp others or Charities and NGO’sthat want to fund their cause.

Its support individuals with innovative ideas,start-ups, artists, entrepreneurs,organizations, bi-communal projects andpeople who have a cause in life to helpothers or Charities and NGO’s that want tofund their cause.

Until today thewebsite hostedtwo campaigns.The firstchampagne wasfor CyprusAnti-CancerSociety and thetotal crowdfundingwas €1,107.00while the aim wasto reach €2,500.00.The second onewas about a newproduct in foodindustry. The totalcrowdfunding was€800.00 while theaim was to reach€5,000.00.

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Policy name Description Sustainability Publicparticipation Observation

Lemba Art StudiosRestoration

The Cyprus College of art is one of theoldest cultural institutions in Cyprusand was founded in Famagusta in1969 by well known artist StassParaskos with support from ArchbishopMakarios.The Cyprus College of Artstudios in Lemba have been home tothousands of artists and art studentsfrom around the world. Art is not likeany other art college in the world.

Althought Lemba Art Studios Restoration theCollege does teach courses, it has alwaysbeen a place where artists and art studentsfrom around the world can come together,exchange ideas, make work and enjoy eachother’s company without the trivial concernsof accreditation and validation that bogstandard art schools seem to worry about. Inshort it is a place made by artists, for artists.

The fund raisingfor stage oneneeds to hit atarget of £10,000.The totalcrowdfunding was£2,325

Unfortunately thisproject did not reachits target.

CZECH REPUBLICStrategic level Crowdfunding in the Czech Republic is

not covered by any specific legal act.Each model (Rewards, Lending, Equity)and its aspects are governedseparately by relevant existing Acts.Any legal entity registered in theCzech Republic can establish aplatform, which would be regulated onthe basis of services provided by aplatform.

Lack of stringent administrativerequirements benefits the overall economicsustainability of the crowdfunding market.

N/A Rewards Model is themost popularcrowdfunding modelin the Czech Republicdue to the fact thatthe regulations ofcapital markets orcollective investmentand public collectionsdo not apply. Theleast preferred, mostexpensive andadministrativelyregulated model isthe Equity Model.

Hithit.cz crowdfundingplatform

Hithit.cz is the leading Czechcrowdfunidng platform according tomoney raised. Even though it operateson an ’all or nothing’ basis it managedto collect 16.000.000 Kc between 2012and 2014.

In order to protect the interest of allparticipants, if a project does not hit itstarget in 45 days it would receive no moneyat all. This way applicants are forced todefine realistic targets, mobilization activitiesare speed up and the backers are not havingto wait forever for theproject/product/service they have supported.

’People + Internet.Done.’ (taken fromhithit website)

Hithit is an exampleof a Rewards Modelcrowdfundingplatform wherebackers choose areward for theircontributions.

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Policy name Description Sustainability Publicparticipation Observation

Rekola - community bikesharing

The crowdfunded Rekola is acommunity bike sharing projectoperating in Prague, Brno, Olomouc,Hradec Králové, Pardubice and ČeskéBudějovice. Anyone can locate thenearest bike/scooter using a handyapp, unlock the bike with a providedcode and leave it at a most convenientlocation once done.

Promotes bicycle as green mode oftransportation.

The success of theproject dependsheavily on publicinterest andinvolvement.

N/A

DENMARKIdentification of relevantlegislation

The revenue service of the Danishgovernment published a report in 2015identifying four different varieties ofcrowdfunding and how the Danishlegislation applies to these. The fourvarieties are: Donation based, rewardbased, credit based and stock basedcrowdfunding.

Before the report there has been confusionregarding how the Danish legislation appliesto crowdfunding. Now that this has becomeclearer the legislation pertaining tocrowdfunding of sustainability projects mustalso have become clearer.

It is unclear if theDanish RevenueService consultedthe public beforepublishing theirreport presentingthe legislativeperspectives ofcrowdfunding inDenmark. Theprofessionalnetworkorganization DanskCrowdfundingForening didhowever ask for aclearer frameworkon the legislation,as it was seen ascentral for thesuccess of theconcept inDenmark.

While only limitednew legislation hasbeen presentedregardingcrowdfunding, it is apolitical focal point.

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Policy name Description Sustainability Publicparticipation Observation

Danish crowdfundingplatforms

There exists no crowdfundingplatforms focusing only onsustainability, but some platforms canbe identified where sustainableprojects are presented in specificsub-homepages. This is also the casefor the largest Danish crowdfundingplatform Booomerang.dk.

Through Booomerang.dk more than 30sustainability projects have tried to raisefunding for their activities.

The public seemsto be interested inthe projects; thesustainable projectthat received themost funding onBooomerang.dkreceived morethan € 6,700.

Maritime Allotments A project seeking to establishaquaculture in the harbour ofCopenhagen, so far a number ofexperiments with e.g. oysters, musselsand seaweed have been carried out.The project received € 5,360 throughcrowdfunding using Booomerang.dk.

By utilizing the harbour of Copenhagen toAquaculture the project seeks to create asustainable production - compared to normalproduction an important part is here theshorter transport distance of the products.

The project is veryopen and has afocal point oncommunicationand disseminationof their work -furthermore theyhope that it will bepossible in thefuture to sell plotto people outsidethe project and letthem become’sea-farmers’themselves.

FINLANDCrowdfunding Act Crowdfunding Act in a draft stage Potential impact on sustainability if the

legislation offers clearer rules for fundingParticipation ofstakeholders inform of feedbackconsultation

The CrowdfundingAct is the first of thekind in Europe

Crowdfunding programfor science andacademic research 2015

A novel way to find funding forresearch from the civil society

Potential impact on sustainability throughthe topics of the research projects thatreceived funding

Participation ofpublic throughfunding of science.’Science movescloser to thepeople’

This action deals withscience

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Policy name Description Sustainability Publicparticipation Observation

Creation of a marketplace for lendingdesigner clothingthrough crowdfunding

A possibility to borrow designerclothing and accessories for a monthlyfee

Contributes to circular economy and to moresustainable use of resources

Without theparticipation of thepublic to the fundraising, thebusiness would nothave been possible

Enables consumptionof luxury and itsrecycling by largerpublic

FRANCEDecree n° 2014-559 ofMay 30th 2014, rulingorder n° 2014-1053 ofSeptember 16th 2014and associated Label

The law prescribes registration atregulatory authorities of moral persons(e.g. crowdfunding platforms) under 3legal statuses – these are applicable toinvestment, lending and donor basedcowdfunding models. Registration isnot compuslory in the case of donorbased models.

The label gives visibility to crowdfundingplatforms and increases stakeholders’confidence in the robustness of the proposedfinancing system.

NA There is nospecification as far ascontrol procedures byauthorities to avoidabusive use of thelabel.

Not specified Local collectivities and entities canleverage funds for local developmentprojects

Sustainability may be achieved by publicfunding of projects related to sustainability(e.g. renewable energies, upgrading ofbuildings’ energy efficiency, energy recoveryprojects)

People from aterritory aresolicited tocontribute to acause thatconcerns themdirectly

Initiatives are ratherlocal and generallyrequire a compulsoryminimumcontribution amountby contributors

Several crowdfundingplatforms of whichWiseed and MiiMOSAhave a sustainableinnovation focus

Wiseed uses the investmentcrowdfunding model to supportstartups primarily in the fields ofenvironment, health, industry and IT.MiiMOSA uses the donation (withreward) model for local sustainableagriculture and livelihood projects

Sustainability is achieved through funding ofSMEs and local initiatives dealing withenvironmental and social innovation

Crowdfunding atWiseed andMiiMOSA involvesinvestors andpeople interestedin supportingsustainableinnovationstartups or localinitiatives relatedto agriculture,respectively

NA

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Policy name Description Sustainability Publicparticipation Observation

MiiMOSA – creation of abotanical garden opento the community

Growing of traditional produce andmedicinal plants creates a setting forsustainable agricultural practices,education, art and leisure

Agricultural practices based on permacultureand agroforestry for local production andconsumption allows for sustainable use ofnatural resources and biological conservation

The project wascrowdfunded andinvolves differentstakeholders in thecommunity as thegarden becomes aspace for farming,education, localcuisine, well-being,art and otheractivities

NA

GERMANYRISK MANAGEMENTTHROUGH THE RETAILINVESTOR PROTECTIONACT

This regulation creates a legalframework touching the crowdinvesting that should avoid risks forinvestors

The main growth rates are projects forsustainable innovations. The riskmanagement aims at a positive impact.

Different interestgroups like crowdinvestors,crowdfundingplattforms andconsumerorganisations havebeen involved inthe legislativeprocess

The law seems to betoo strict eliciting tohigh transactionscosts and limiting theinvestment at 10.000Euro.

ECOCROWD PLATFORM A crowdfunding platform parallel tohalf a dozen platforms specialised insustainable projects

Impact on sustainability through financialresources

Key players aresupporting theplattform

A platform to supportsustainable projectsfinancially but also tocreate space forexchange

’Original Unverpackt’ A business model with a franchiseapproach

To avoid waste and encourage a sustainablenutrition

A huge resonancewith 545% of thethreshold

A pattern to imitatefor other projects

GREECE

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Policy name Description Sustainability Publicparticipation Observation

No legal framework forcrowdfunding in Greece.

By relevant legislation, equity basedcrowdfunding projects over €100.000must publish a prospectus; thusprojects with lower budgets aretheoretically exempted from thisobligation. A common, EU-levellegislative framework for crowdfunding,is anticipated to be established in2019.

Greek universities may create onlinedonation and equity crowdfunding platformsfor the purpose of financing research,innovation and entrepreneurship.

The Greekcrowdfundinglandscape consistsmostly ofdonation/rewardbased platformswith a shortoperation lifetimeand a relativelylow number ofprojects.

N/A

The Groopio platform The first and most widely usedcrowdfunding platform in Greece witha variety of hosted projects.

Groopio focuses on creative and sociallyoriented projects without excludingentrepreneurial efforts.

Until 2014,Groopio hadmanaged to gatheraround 100.000€for the financing ofnew projects.

The amount gatheredis impressive,considering the lowlevel of publicawareness toalternative financingin Greece.

The Zylo Eyewearcompany

Zylo is a successful sustainableinnovation company, establishedthrough a crowdfunding campaign. Itdesigns and produces handcraftedsunglasses made out of wood.

Zylo’s sunglasses are made out of 100%wood using non-chemical ingredients in thefinal stage of the production process.

Zylo’s teammanaged toexceed the initialfinancing goal by60% gatheringalmost 25.000€ inone month by 216people.

N/A

HUNGARY

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Policy name Description Sustainability Publicparticipation Observation

No specificcrowdfunding act

There is no specific regulation relatedto crowdfunding activity in Hungary.General regulation on taxation is given,however, interpretation related tosome crowdfunding activity is an issue.Equity-based crowdfunding seems torequire further regulations, especiallyfor investor protection. A dedicatedcrowdfunding law could regulateinvestor protection as well ascontrolling of the institutional systemof crowdfunding at the same time.

Non-profit sustainable initiatives seem tofunction well, however, support sustainabilityrelated to business ideas seem to struggle.

There is a quitehigh level of publicparticipationrelated tonon-profitinitiatives both onidea owner anddonator side. Onthe other hand itseems to be arelatively limitedinterest innon-charitycrowdfunding onbacker side andbig ideas seem toappear rather oninternationalcrowdfundingplatforms.

N/A

Adjukössze Adjukössze is a crowdfundingplatforms in Hungary that explicitlytargets the enhancement of socialbenefit through enabling crowdfundingactivity of civil organizations,communities and individuals. Though itdoes not target sustainability only,among its eight project categoriesthere is one dedicated to environment,one to society and also others cancontribute to sustainability (e.g.Education).

It can support sustainability by ensuringfinancial and/or material donations,volunteers for different kinds of projectsrelated to sustainability.

There are manysuccessful projectsthat clearlyindicates publicinterest. Also theidea owners areeither civilorganizations ormembers of thecivil sphere. Thereare also celebritiesinvolved in somecampaigns.

It seems that supportof non-profits andnon-profit ideas ismoreaccepted/widespreadthan crowdfunding offor-profit initiatives.

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Policy name Description Sustainability Publicparticipation Observation

Olcsón, öko-tudatosan!(Cheaply,eco-conscious!)

An initiative that includes workshopsfor spreading eco-consciousnessamong poor households by introducingsustainability practices that are notonly healthy and environmentallyfriendly, but are cheap to implement.

Environmental awareness-raising and spreadof sustainable practices directly enhancessustainability in poor neighbourhoods.

Successfulcrowdfundingcampaign onAdjukösszeindicates publicinterest. Alsoparticipation andinteractivity of thetarget group wasfavourable.

IRELAND

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Policy name Description Sustainability Publicparticipation Observation

There is no currentstartegic policy orprogramme forCrowdfunding in Ireland.Sustainable Case -CloughjourdanEcoVillage

Cloughjordan Ecovillage is Ireland’sfirst ecovillage with over 100 residentsliving in high-performance greenhomes, among 20,000 newly plantedtrees and Ireland’s largest renewableenergy district heating system. Thevillage is a registered educationalcharity and an internationallyrecognised destination for learningabout sustainable living.

The villahe project set out with the objectiveof ‘Building Sustainable Community’ and isnow putting in many systems to buildresilience. As well as the high performancehomes, renewable energy for heating, landfor growing food and trees, an enterprisecentre and community buildings, the projectis championing community supportedagriculture, exploring community currencies,introducing local democracy and governancesystems and playing a part in thestrengthening of the local and regionaleconomy.

There are severalways to become asupporter ofCloughjordanEcovillage, a notfor profit companyand a registerededucational charity.The public whosupport themission of thevillage/communitycan make adonation to thetrust fund orbecome a friend ofparton of thevillage.Alternatively youcan become amember of thevillage by buying asite and buidling ahome and joingthe community.The communityalso acceptsupport donationsto nurture thewoodland of thevillage.

The ideals andmission of the villageis commendable andthe project has beenrecognised by the UNfor LiveableCommunities.However thedevelopment of thevillage slowed duringthe financial crisisdemonstrating it is assusceptible to marketshocks as othercommunities. Theextending of fundingfrom third parties(donators) isunknown although itis assumed to be at arelatively low level.The lack ofawareness of thevillage and interestinfunding suchcommunities may bea cause.

ITALY

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Policy name Description Sustainability Publicparticipation Observation

Equity crowdfunding forenvironment

Ecomill is the Italian equitycrowdfunding platform authorized byCONSOB that is offering shares forfinancing projects and new venturestargeting the sectors in energy,sustainability, regeneration and localeconomic development. Apart from theabove noted sectors, Ecomill is alsopromoting investments in renewablesand distributed generation, energyefficiency, smart grids and districtheating, sustainable mobility,biotecnology and environmentalservices. In addition to management ofthe platform, Ecomill is providing anadvisory support to entrepreneurs andinvestors in the provision of analysisand project development prior tolaunch of the crowdfunding campaign.

Due to the extended set of services offeringin addition to the management of theplatform the extended advisory servicesfocusing at the project development prior tothe launch of campaign via the crowdfundingplatform, Ecomill is contributing to theincrease of the quality of the project that willbe at the latter stage introduced to themarket. Quality services leads to the qualityproduct towards sustainability of theplatform and the market supply.

Ecomill proclaimsits support tosustainability,innovation andparticipation.

Ecomill crowdfundingplatform proclaims ina simple and clearmanner itsenvironmentorientation andmodus operandisupported with userfriendly web platform.However, it was notpossible to gatherdata with regards tothe endorsed projectsfor funding and theirplacement on themarket.

Fundera The aim of Fundera is to facilitatecleantech and sustainability startupsand renewable energy generationprojects, with a focus on the Italianmarket. Fundera’s founders areprofessionals with a significantexperience in the sector and an haveaccess to an extended network ofentrepreneurs, investors,manufacturers, innovators in thecleantech sector. As Fundera’s founderFulvio Mariani stated: ’The cleantechrevolution has just started and needsnew fundraising tools to boost itsgrowth. Crowdfunding is just a perfectfit as it brings an immense audience toinnovative and sustainable projectswhich is what people are looking for.’

Fundera is oriented towards sustainability ofstart-ups and projects focusing at cleantechand renewable energy.

The crowdfundingper se is based onpublic participationprinciple.

There is a raisingtrend ofcrowdfundingplatforms focusing atsustainable projects,oriented towardsenvironment, energyand social innovation.

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Policy name Description Sustainability Publicparticipation Observation

LATVIAProject Bank Project Bank is the only crowdfunding

platform in Latvia.Considering this is a new approach offunding in Latvia, the projects mainly can beclassified as small scale projects of anynature. Currently most of the projects arerelated to innovative art and awarenessraising ideas.

The platformincludesinformation aboutthe finished,ongoing andplanned projects.Until now sevenprojects have beensuccessfullycompleted andfinanced. In totalmore than 21000EUR have beencollected from 674investors.

This initiative is at itsinitial phase. Theplatform is not widelyused yet, however ithas already attainedsome of its objectives.Currently newentrepreneurs tendto apply to foreigncrowdfundingplatforms.

Initiative of mutuallending platform Mintos

Currently no regulation oncrowdfunding exists in Latvia. In thebeginning of 2015, mutual lendingplatform Mintos invited Ministry ofFinance and other high level officials tocreate a working group to developnormative framework for Latvia.Financial and Capital MarketCommission positively evaluated thisinitiative, though no further action hasbeen taken.

Normative framework most probably canpositively influence and foster developmentof crowdfunding in Latvia.

This initiative fordevelopment of anormativeframework forcrowdfunding hasbeen proposed byprivatestakeholders. Itshows that there issuch a need andfurther actionsshould be taken.

Currently no stepsfrom the legislatorhave been made.Furthermore, there isno publicly availableinformation if any ofthe state institutionsis working on thisissue.

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Policy name Description Sustainability Publicparticipation Observation

Innovative project ideassupported throughforeign platforms

The local platform in Latvia is in itsinitial phase, therefore individuals arenot yet presenting their innovativeideas on this platform. Meantime,young entrepreneurs present theirinnovative and cost demanding ideason foreign platforms, e.g., Kickstarterto build up their ideas.

Most of the presented project ideas fosterresource efficiency and sustainability. Thereare different ideas of Latvian entrepreneursattracting crowdfunding investments: •auto-follow drone AirDog (www.airdog.com/)• Rubicon 3D scanner (www.rubitech.org/) •WI-FI display that tracks what’s important toyou Displio (http://displ.io/) • Miito – devicetransferring heat to boil liquid in the vessel(www.miito.com/)

These products arecreated bydifferentindividuals. Inorder to developtheir innovation,they seek publicinvestments.

There are alreadyseveral successfulindividual projectspresented andfinanced. It seemsthat youngentrepreneursappreciate this wayof financing and seekfor moreopportunities.

LITHUANIAIdentification of relevantlegislation

Official working group was createdwith experts from Ministry of Finance,Ministry of Economy and Lithuanianbank. This group currently reviewslegal acts, best foreign practices andwill propose to the Government how toregulate this field.

Before that initiative, the problem thatLithuanian startups are not able to use orcreate national crowdfunding platforms wassimply ignored. The initiatives raisedawareness at the higher official level.

Public participationis low. There is noconnectionbetween policymakers andpromoters ofcrowdfunding atthe moment.

[Please includeobservation in 2-3sentences - anddelete this text]

P2P lending initiatives While regulatory environment is notfavourable for crowdfunding platformsin Lithuania, there are initiatives whichuse the word ’crowdfunding’ in theirmarketing campaigns, but in theessence are similar instruments, basedon P2P lending (peer to peer lending)schemes. Examples can be:https://savy.lt/,http://www.lenndy.com/

Potentially can be used for projectspromoting sustainability. But at the momentsustainability is not a specific priority.

It is difficult toevaluate the realinvolvement of thepublic, as there islack of reliabledata.

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Policy name Description Sustainability Publicparticipation Observation

Rubbee project onKikstarter

Uses innovative technological solution– mechanical friction drive module,assembled together with an electricbattery and an electronic batterymanagement system - provides amarket to bicycle users with acomplete product that allowsconverting any standard bicycle toelectric one.

Aims to convince car drivers to switch toelectric bicycles by allowing the conversionof regular bikes into electric ones.

A widely debatedcase, had asuccessfulKikstartercampaign.

MALTAZAAR.COM.MT Malta’s first crowdfunding platform for

creative projects, start-ups, andbusiness ideas was launched on 1stDecember 2015. The platform hasbeen established by the Foundation forthe Promotion of EntrepreneurialInitiatives, a joint venture between theMalta Business Bureau and theUniversity of Malta.

To date the platform has not featured asignificant number of sustainable innovationprojects or businesses ideas.

The ZAAR.COM.MTplatform is still atan early stage andso far creative andstart-up projects inMalta have notreceived donationsvia this platform.

ZAAR is alsosupported by theMinistry for theEconomy, Investmentand Small Businessand the Arts CouncilMalta. This type ofsupport for thecreative industries isa positivedevelopment whilehighlighting the needfor regulation to helpincrease activities inthis sector further.

POLANDBeesfund Equity crowdfunding - proof of concept Open access for equity crowdfunding. Public participation

in preIPO stage ofinnovative projectsthat otherwisewon’t be financed.

Platform becameproof of concept foritself running firstproject based ontheir own case.

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Policy name Description Sustainability Publicparticipation Observation

Zbigniew Bródkacrowdfunding initiative

Crowdfunding for sportsman Alternative sponsorship in sports not basedon commercial companies.

Opportunity tobecame sponsorfor your favoritesportsman or sportteam.

Zbigniew Bródkafound a way tosponsor his start inOlympics in type ofsport that is notmuch popular inPoland.

Secret Service A practice that shows how not to runcrowdfunding project

IPR is important for crowdfunding projects.Some of them lack the background check ofIPR issues which leads to their failure.

Crowdfunding isbased on ideas.The mainresponsibility fortheir feasibility hasthe creator ofcrowdfundingproject.

It shows thatcrowdfunding needexperts and shouldbe don’t by peoplewith no expertise butstill keep in mind itbottom-up approach.

PORTUGALCrowdfunding inPortugal

Portuguese government classifiescrowdfunding as a collaborativefunding. Crowdfunding is a fastemerging innovative practice that isexponentially supporting start-ups andenterprises engaged in thedevelopment of sustainable andinnovative products and services.

Online crowdfunding allows the removal ofmiddlemen, and helps in the establishmentof a direct financial relationship betweensocially and environmentally consciousinvestors and sustainable entrepreneurs.

Crowdfundingplatforms providethe means andtools for enhancingand facilitatingpublic participationin addition toengaging societyto support socialand sustainableprojects.

In this momentcrowdfunding inPortugal ismultidisciplinary withno particular focus onan specific domainsuch as sustainableor social innovation,to increase thenumber of projectsaddressingsustainableinnovation, it shouldbe promoted theorganisation ofawarenesscampaigns andpromotion of casestudies.

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Policy name Description Sustainability Publicparticipation Observation

Crowdfunding platformsin Portugal

- People with Portugal (PPL) Theorganization’s goal is to democratizeproject support. PPL believes inPortugal and the entrepreneurship andcreativity of its people. - Massivemovgives coverage to sustainableinnovation products or services in thesection of Product / Service Innovation.- The NOVO BANCO socialCrowdfunding, pioneer in Portugal,came to address the need to find newways of participation and socialparticipation, allowing anyone tocontribute to a particular case throughthe Internet and collectively helprealize a project.

Crowdfunding platforms available in Portugalprovide an excellent area for flourishingprojects and ideas addressing social andenvironmental challenges.

The platformscontributes tosocial participationallowing anyone tosupport projects,ideas orcampaigns.

Dedicated platformson sustainableinnovation will beonly created whenthere is sufficientcritical mass onprojects in thisdomain that justifiesthis kind ofspecialization.

STUFA - a garden onyour window sill

STUFA aimed at promoting gardeningat home, designing easy kitsexplaining the experience of growing,caring and using kitchen herbs athome. The first edition of the kitincluded: basil, parsley and coriander.

The project addresses the topic of urbanagriculture.

The STUFA projectraised 5.182€ from130 supporters.

These projects orcases addressingsustainable or socialaspects are notradical innovations oradvances but areimportant steps topromote this areaand to encourageothers to create newideas.

ROMANIA

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Policy name Description Sustainability Publicparticipation Observation

Strategic planning ofcrowdfunding

There is no national policy orregulation in place for crowdfundingactivities in Romania and there are noobvious strategic aims to address this.

There is no national policy or regulation inplace for crowdfunding activities in Romaniaand there are no obvious strategic aims toaddress sustainability.

There is nonational policy orregulation in placefor crowdfundingactivities inRomania and thereare no obviousstrategic aims toengage publicparticipation.

There is no nationalpolicy or regulation inplace forcrowdfundingactivities in Romaniaand there are noobvious strategicaims to address this.

Crestemidei.ro General platform, encouragesinnovative projects and new ideas,most of them related to social andcultural activities, but there are acouple of projects for new technologiesrelated to the environment as well .

At least two small projects wereimplemented which included sustainableinnovation objectives.

Weak participation,low levels ofawareness andpublicity ofcrowdfundingplatforms, riskadversity of thegeneral public,donors are thedominant type offinanciers.

The platforms havenot succeeded yet tobecome attractive forSME’s or equityoriented investors.Most projects whichwere launched on thecrowdfundingplatforms are relatedto social and culturalactivities. Those,which succeeded toobtain financing andwere implemented,have focused onthematic activities,like organisingfestivals of music andarts, sports, artcampaigns, books,entertainment andcommunity activities.

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Policy name Description Sustainability Publicparticipation Observation

The Solar House project The general objective of the projectwas to present a viable residentialsolution for the abandoned industrialsites around the city of Bucharest. Atthis stage, the crowdfunding wassupposed to support a specificobjective, the group’s participationwith the prototype at the SolarDecathlon Europe 2014, anaward-winning competition in designand build of solar houses.

A specific objective of the project was todesign, build and promote the prototype ofan energy efficient, self-sustainable andsmart building.

A number of 37donors supportedthe initiative,raising therequired amountof money ofaround EUR 2000to reach thespecific objective.

The Solar Houseproject is relevant forthe actual phase ofcrowdfundingmechanism inRomania. Thepromoter/innovator isnot an organizedlegal body, but agroup of wishful andcreative people. Theinnovation is notmeant forcommercialization atthis stage, it is in theinitial phases ofdesign anddemonstration. Thecrowdfunding is notdirected for the mainobjective, but rathera complementarysource of finance foradditional activities.The investors are notlooking for the equity,they are donors, whoenjoyed the idea andare looking forwardto seeing it realized.

SLOVAKIA

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Policy name Description Sustainability Publicparticipation Observation

Dobrá krajina (Goodcountry)

Platform initiated by the PontisFoundation, with strong background inthe corporate philanthropy, withsupport from several privatecompanies. This platform is raisingfunds for individual projects, orprojects initiated by thenon-governmental organizations andnon-for-profit initiatives.

The platform is not focused specifically onthe green / sustainable innovations, butsome of the listed projects are partiallyrelevant - for example local natureconservation initiatives.

Dobrá krajina isone of the mostpopularcrowdfundingplatforms, withwide base ofindividual donorsand portfolio ofsupported projects.It is functioning asan open platform,with projectsinitiated byindividuals ororganisations.

One of the strengthsof the platform is thatit builds on strongbackground of PontisFoundation incorporatephilanthropy. Theinitiative has startedand is functioningwithout any specificpublic support, ortargeted policy.

Crowdberry Crowdberry (www.crowdberry.sk) isequity based investing platformconnecting investors with the businessideas aiming to raise the capital fromseveral private investors in exchangeof equity. After an internal duediligence, Crowdberry provides accessto a wide network of private investors.Services such as legal consulting, orpersonal meeting with investors, putCrowdberry beyond the scope oftypical crowdfunding portal.

The platform is not targeting specificallysustainable innovations, and only one of theprojects listed on the platform could beincluded into this category (Green WayOperator - however this project is listed onlyas a draft, it has not started the fundingdrive yet). In future, the type of servicesprovided by the platform and potentialaccess to larger investors might attractprojects / ideas with strong sustainabilityaspect.

All projectsfulfilling simple setof criteria couldapply for listing onthe platform, butthe managingteam undertakes asimple duedilligence in eachcase.

The platform hasstarted and isfunctioning withoutany specific publicsupport, or targetedpolicy initiatives.

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Policy name Description Sustainability Publicparticipation Observation

Case level: Green WayOperator

Green Way Operator - a privatebusiness initiative for shared use ofelectric cars - is currently listed at oneof the crowdfunding platforms(Crowdberry). However, this projecthas not started the funding drive onthe platform yet, and any funds raisedon the platform would be onlyadditional to other types of funding.

The project is described in more detail inCasipedia:http://www.casi2020.eu/casipedia/cases/863

No specific publicparticipation onthe project.

Any funds raised onthe platform wouldbe only additional to(and minor comparedto) other types offunding, used by thecompany - projects,including financed bythe EU (TEN-T),corporate investmentand own financing.

SLOVENIATRAVELSTARTER.COM Travelstarter.com crowdfunding

initiative was launched by twoSlovenian entrepreneurs. They supportindividuals and local businesses byhelping them raise funds for theirtourism and travel related projects(travelstarter.com).

Travelstarter supports different kinds ofinnovative tourism projects and ideas, whileone of their special orientation is to supportSustainable tourism development ’forbuilding a better world and preventenvironmental degradation, destruction offragile ecosystems, and social and culturalconflict’.

Public supports theinnovative andsustainableprojects bybacking them onthe plathform.

Plathform exclusivelyfocused on tourismprojects and ideas.

TOKTOKFURNITURE.COM TOKTOKFURNITURE.COM is a startupoffering beautifully designed andfunctional furniture artfully handmadein collaboration with local businessesand craftsmen using Slovenian woodand other locally sourced materials.

Wooden product and furnire that combinemoden technology (IT) and natural materialssourced locally.

The public isengaged byco-creating thedesign, givingfeedback, andcontributing ideasfor future products.

The startup in theiroperations supportscraftmanship, usesabundant rawmaterials available inSlovenia, which inline with trends anddesign.

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Policy name Description Sustainability Publicparticipation Observation

I FEEL SLOVENIA I feel Slovenia is the Slovenian nationalbrand which represents Slovenia athome and abroad with a view toincrease its recognition abroad andimprove its symbolic position andinfluence in the international sphere. Itis supporting different areas (tourism,business, sports, etc.) in the widestsense. More information about thebrand story available on:http://www.slovenia.si/ifs/brand-story/

One of the central elements in our brandidentity is being sustainability, nature and’green’ colour. An example of sustainabilityrelated to the brand in the tourismincorporated in its brand story is: ’Sloveniadecided that sustainable (green, ecological)tourism will be its main goal for thedevelopment of tourism in the future.Sustainable tourism means environmentallyfriendly travelling to destinations where flora,fauna and cultural heritage are the mainattractions and where the impact on theclimate is reduced to a minimum.’

Public, as well asother stakeholderswere engaged inpreparation of thecontry’s brandidentity withdifferent actititiesand setting thepriorities ofcountry’s futuredevelopement.

The brand is wellperceived withincontry’s populatonand foreigh visitors.

THE NETHERLANDSStrategic level National government is keen to

stimulate crowdfunding as anadditional source of financing for smalland medium-sized enterprises becausethe diminishing financing opportunitiesfor SMEs.

National governement sees the particulairimportance of crowdfunding for sustianableinitiatives and specifically projects onsustianable energy

A recentlyestablishedlearning networkrelevant forcrowdfunding iscoordinated by theNetherlandsEnterprise Agency.This is a networkof financers, suchas banks,insurancecompanies,business angelsand pension funds,includingcrowdfundingplatforms thataims to provideadvice and supportfor start-upcompanies onsustainable energy.

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Policy name Description Sustainability Publicparticipation Observation

Programmatic levelOrganising thecrowfunding sector

The Ministry of Economic Affair playeda key role in the establishment of theCrowdfunding Association of theNetherlands (BrancheverenigingNederland Crowdfunding) in February2014, started by the crowdfundingplatforms together with consultanciesin the market. Its aim is to ’strengthenand make the development ofcrowdfunding for business financing inthe Netherlands more sustainable’.This association represents more than95% of the market of crowdfundingplatforms for company financing.

Most of the crowdfuning platforms aregeneral, but can also be used for sustainableinnovation projects. Some of thecrowdfunding platforms focus only onsustainability projects like Windcentrale,Oneplanetcrowd, Greencrowd, and1miljoenwatt.

The crowdfundingplatformsfocussing only onsustainabilityprojects areestabhlised incooperationsbetweenorganisations. ForinstanceWindcentrale hasbeen financiallysupported by bothStichting Doen, amajor NGO in theNetherlands, aswell as Rabobank,one of the largestbanks in theNetherlands. Inaddition, it has hadsupport from theAssociation ofHouse Owners.AndOneplanetcrowdstarted in 2012, asa partnership ofseveralorganisations:investmentcompanies,investmentconsultancies, anda law firm, some ofwhich aretargetingspecificallysustainabilitycompanies.

Public participation isnot only part of thecrowdfunding butalso of the fouding ofthe crowdfuningplatforms.

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Policy name Description Sustainability Publicparticipation Observation

Operational level, casePowerplane

The PowerPlane technology convertswind power into electricity using anautonomously controlled glider planeflying repetitive cross-wind patterns,attached with a cable to aground-based generator. As acontribution to the design,construction and testing of prototypenext to other sources of investmentAmpyx Power raised €329,700 viaOneplanetcrowd

A new technology that converts wind powerinto electricity with less costs at lower costlevels than fossil-fuelled alternatives. Itminimises the use of materials required forelectricity generation and reduces the noise,the foundation requirements transportation,installation and decommissioning costs, aswell as lower operations and maintenancecosts than the larger conventional windturbines.

Crowdfundingmakes it possiblethat not onlystakeholders andprofessionalinvestors but alsosmaller investorscan participate.This creates abroad constituencyfor future financialand societalsupport. And forsmaller investorswith a sustainableinterestcrowdfundingoffers the uniqueability toparticipate in anearly stage of thedevelopment of apioneeringinnovativetechnology forrenewable energy.

A very noveltechnology attractsthe societal attentionthroughcrowdfunding

UNITED KINGDOMFinancial ConductAuthority (FCA)

The UK government has activelyencouraged the growth of thealternative finance sector by directcapital investment through thebusiness Finance partnership, and theFinancial Conduct Authority (FCA) iscurrently publicly consulting onforthcoming regulation in the area.

Increased investment could have a positiveimpact on sustainable innovations.

Participation ofstakeholders in aSocial Investmentand CrowdfundingWorking Group toaid the reviewprocess of theregulatory regimefor crowdfundingwithin the UK.

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Policy name Description Sustainability Publicparticipation Observation

Abundance Generation A crowdfunding platform thatspecialises in funding environmentalsustainable projects whilst making acontribution to cutting carbon.

Sustainability is achieved through workingwith renewable energy developers andinvesting in projects that supportsustainability.

AbundanceGenerationplatform involvesinvestors, over4500 membersand supports localcommunityprojects such ascommunity windturbines and solarpanels on publicbuildings.

BRIGHTER SCHOOLS UK This initiative uses the fundsgenerated from a crowdfundingplatform to fund the installation ofsolar PV systems in schools across theUK whilst also seeking to reduce theschools expenditure on energy, reducethe impact on the environment andprovide an opportunity to educatepupils on sustainable renewableenergy.

The UK Government would like every schoolto be a sustainable school by 2020. Thisspecific initiative is allowing schools to utiliseSolar Energy and to reduce the schoolsexpenditure on energy, whilst also reducingthe impact on the environment.

A sustainableschool takes anintegratedapproach to itsimprovement. Itexploressustainabledevelopmentthrough itsteaching provisionand learning(Curriculum); in it’svalues and ways ofworking and byengaging with theengagement oflocal people andpartners(Community) thathave invested inthe initiative.

Appendix 1 summarises relevant and representative policies and initiatives in selected countries participating in the CASI project. Each of these summaries is presented ingreater detail in respective national level policy briefs available on the CASI website at www.CASI2020.eu. A more in-depth European level policy brief is also available on the site.