Speech Chris Buijink Crowdfunding Day 2015


Gepubliceerd op 12 mei 2015

Speech Chris Buijink uitgesproken tijdens Crowdfunding Day 2015; 12 mei, Amsterdam ArenA

Gesproken woord geldt

Ladies and gentlemen,

* On the second of May I went to see the New Amsterdam Voices in De Brakke Grond, here in the center of Amsterdam, to celebrate the release of their first album. This talented group of a-cappella singers - 7 voices, 7 friends, 1 sound - financed their first album in only a couple of weeks
through crowdfunding!
* As one of the singers is my daughter, Vera, I'm not only addressing you today as chairman of the Dutch Banking Association but also as a proud father who has seen that crowdfunding can be a big success!
* The growth of crowdfunding in Holland has been impressive. Since 2011 the funds that have found their way to projects and businesses have more than doubled each year to 63 million euro in 2014.
* Worldwide it's even more impressive: 16 billion dollars in 2014
* These impressive figures trigger the question if banks fear the competition from crowdfunding in financing companies?
* The answer is simple: No, we welcome it!
* As a result of the recession many small and medium enterprises are struggling with securing bank loans because their equity capital has diminished severely.
* Crowdfunding, especially equity based crowdfunding, can play an important role in providing more risk-bearing capital for Small and Medium Enterprises.
* By thus providing SME's with more equity capital, a so-called equity cushion, crowdfunding can also improve the chance that companies can apply successfully for a bankloan.
* That's why banks see crowdfunding as a meaningful addition to the funding mix
* And crowdfunding is also beneficial for the entrepreneur: to secure investments in his company one has to go at length in presenting his product or service. In that respect the whole process of obtaining crowdfunding can also be seen as a first and thorough market research.
* A fascinating example of this is the computer game Star Citizen where future costumers have already spent 65 million dollars on virtual spaceships that they can use in a game that still has to be developed.
* To convince a crowd to invest in a company or product entrepreneurs have to offer a sound business proposition. It forces them to make a good business plan and think carefully about the earning model.
* They later can use this experience in securing a bank loan. A good business plan is one of the key factors for the bank in deciding to grant a loan.
* Now that the economy is showing signs of recovery, we have to make sure that a lack of funding for businesses does not frustrate growth.
* Banks will keep on playing their role in providing SME's with debt capital. In the Netherlands, banks have roughly 140 billion lent to SMEs.
* But with banks now adapting to new capital requirements and restructuring profitability, banks' capacity to grant new credit has become limited. Alternative sources of finance could help companies complement bank funding
* To secure growth in the coming years we have to broaden the funding possibilities for SME's. Dutch banks see it as their responsibility to contribute to the broadening of these funding possibilities
* That's why we need better access for smaller companies to capital markets.
* We therefore support the EU-initiative for a Capital markets Union: a set of initiatives designed to develop alternative sources of finance and to let capital flow freely across the EU.
* This will help bigger companies in the first place and SME's indirectly.
* Credit unions are another example of an alternative source of finance for SME's. Only recently the Dutch parliament introduced legislation that will make it easier for credit unions to start.
* This is something that we applaud, although a tailor made supervision is necessary to prevent too large risks.
* But of all the alternative sources of finance I think crowdfunding is the most innovative way to bring investor and entrepreneur together. I therefore foresee a bright future for crowdfunding!
* I believe banks can help bring initiatives like crowdfunding to the next level given our lengthy experience and expertise as provider of debt capital.
* And, the other way around, banks can learn a lot from crowdfunding platforms. They show us the way in online service to customers: a combination of speed, user-friendliness and, very important, a sense of personal involvement.
* Banks have already taken initiatives to learn from and participate in crowdfunding platforms.
* I think and hope that this collaboration between banks and platforms will intensify in the next coupe of years. Let's work together!