2nd Stakeholder meeting Utrecht, Netherlands

On February 13th 2024, RDA Utrecht Region, the Dutch partner of the CROWDFUNDMATCH project, hosted the 2nd regional stakeholder meeting online in Utrecht. De deelnemers zijn actief bij andere regionale ontwikkelingsmaatschappijen in Nederland. This stakeholder session was organized to discuss the trends, developments and experiences in the crowdfunding market, as well as the barriers and risks for combining crowdfunding with European funds. Trends and developments In the Netherlands, crowdfunding has emerged as a mature financing method, showcasing versatility in funding startups and scale-ups alike. The Dutch crowdfunding sector alone boasts an impressive annual turnover of approximately 1 billion euros, predominantly channeling support towards creative and social endeavors. There is strong growth in the equity crowdfunding sector in Europe, with significant investments observed, particularly in countries like France and the United Kingdom, showing the opportunities of combining the investments. Challenges in implementation One of the biggest challenges in implementing crowdfunding for RDAs is the risk for the crowd, especially in early stages of projects with high bankruptcy risk. The meeting also highlighted the perspective that in these early stages, it is beneficial to know the co-investors, which is not possible with crowdfunding. Another barrier that was discussed was how RDAs can deal with downrounds and other complex situations that may arise in crowdfunding. Discussions surrounding potential pilot project outcomes revealed a spectrum of viewpoints. While concerns regarding bankruptcy risks and investment complexities were voiced, participants also highlighted the potential benefits, including market validation and public due diligence facilitated through crowdfunding. Potential applications Beyond financial backing, the session explored diverse applications of crowdfunding, ranging from market validation to fostering community engagement in sustainability initiatives and beyond, because of growing interest observed in areas like circularity and food transition, offering substantial traction in the consumer market. Suggestions were made regarding the establishment of investor qualification and accreditation processes to mitigate risk and foster joint investments. As the RDAs will continue to navigate the evolving landscape of crowdfunding, strategic collaborations and prudent risk management remain pivotal in unlocking its full potential for regional development.