Depends on your company’s life cycle
Ailin Svardahl from FundingPartner described the difference between crowdfunding and crowdlending, which are two alternative approaches to obtaining funding.
Using crowdfunding is a direct investment in which the investor obtains equity and is especially suited for companies in an early stage.
Crowdlending on the other hand, implies that the investor is a lender instead of an owner. Crowdlending is also typically applicable somewhat later in the company’s life cycle than crowdfunding and requires some form of security.
In crowdlending the lender bears less risk than the investor in crowdfunding, and in case of bankruptcy the lender will get their money back sooner.
Common for both funding methods is that private actors can invest.
Crowdfunding brought in 80 million
CEO Paul Birger Torgnes and his team in Torghatten Aqua, set a new crowdfunding record at Folekinvest.no, and he shared his experiences with this funding approach.
Torghatten Aqua is a great example on how to succeed with crowdfunding because they raised NOK 80 million and they attracted 843 investors.
They were clearly happy with the results, and Paul Birger Torgnes gave the Startup attendees some insight into the process. He also provided them some recommendations on what they should keep in mind if they want to try crowdfunding.
In addition, Jørgen Aspenes from Folkeinvest gave a short presentation to the 29 participants at Startup Morgen about their service.
Sign up for next time
It was definitely an interesting subject on startup morning. Hope you will join us next time!