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Let’s go crowdfunding! Overview SME credit & crowdfunding in the Netherlands Daphne Habets

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Daphne Habets @Meddex
Daphne Habets @Meddex

The document discusses small and medium-sized enterprise (SME) financing challenges in the Netherlands and the rise of crowdfunding as an alternative. It notes that 99.8% of Dutch companies are SMEs, but they face difficulties obtaining bank loans, especially for amounts under €250,000. Crowdfunding has grown significantly in recent years and is expected to reach €250 million in funding for Dutch SMEs by 2015. The document outlines various crowdfunding platforms in the Netherlands and suggests opportunities for further collaboration between traditional and alternative finance providers.

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LET’S GO CROWDFUNDING! SME Credit & Crowdfunding in the Netherlands Daphne Habets October 2014
WELCOME TO HOLLAND!
Cost aware Innovation Direct communication Water vital topic MEET THE DUTCH Extremely internet literate Saving in nature >25 y/o International & trading
HOUSTON, WE’VEGOT A PROBLEM! <MKB Nieuws> •News Finance SME still a problem December 2013 According to RVO.nl it is very difficult for entrepreneurs to have their plans financed March 2014 '‘Entrepreneurs see more opportunities for growth regarding the ending crisis situation. Unfortunately they now have a weaker financial position, there is an increased risk for banks and there are insufficient alternatives for bank finance'', Minister of Economic Affairs Kamp says. July 2014 Nu.nl OESO : SMEs have difficulty to find finance for innovation and growth. This could weaken a strong economy growth in the future March 2014 Rijksoverheid.nl Accountants could play a key role in SME finance. But their knowledge about the subject is too poor, critics say. Especially when it comes to hybrid solutions, the inexperience factor is crucial. July 2014, Accountant.nl Government acknowledges distressing situation SME finance April 2014, RTLNieuws.nl
WHAT DOES THE SME MARKET LOOK LIKE? 99,8% of the companies in the Netherlands is SME (1,1 million) Banks have € 143 billion in SME credit (2013) http://www.mkbservicedesk.nl/9619/financieringswinkel-voor-mkb.htm / http://www.dnb.nl/nieuws/nieuwsoverzicht-en-archief/dnbulletin-2014/dnb309784.jsp http://www.mkbinbeeld.nl/dl/mkbinbeeld-rapport.pdf €353 billion total business (including SME) credit (2012) file:///D:/Eigenaar/Mijn%20documenten/Downloads/kredietverlening-aan-het-mkb%20(5).pdf http://www.banken.nl/bankensector/bankensector-nederland 2013-1 2012-1 Own bank 64% 75% Other bank 27% 21% Family & Friends 3% 3% Suppliers 6% 3% Other 12% 9% Main banks Rabobank 44% marketshare in banking SME credit* ING ABN SNS Bank *excluding farmers
FINANCE CHOICES FOR SME Source: Banken.nl december 2013, TNO poll 1.100 SMEs http://www.banken.nl/nieuws/1753/ing-gebruik-van-alternatieve-financieringsvormen-beperkt 1 . Own resources 2. Bank
SITUATION NOW When a SME entrepreneur needs external finance, 4 of 5 times it’s a bank finance in Europe. In the US it’s one of 5 Since the crisis, 32% of present credit applications are granted Situation in the Nederlands is most worsened according to ECB (from about 50% to 32% corrected for number of applications) http://www.nrc.nl/carriere/2013/11/14/ecb-nederlandse-mkber-heeft-meeste-moeite-lening-te-krijgen/ 75% of entrepreneurs in SME sector is dissatisfied about banking finance
I CAN’T GET NOSATTISFACTION! NO NO NO Dutch SMEs are more dissatisfied (20%) about access to finance than German (8%), French (15%) or Belgian (12%) entrepreneurs Source: SME access to finance (SAFE) survey of the European Union It’s not only recent Source: OECD
RECENT STUDY CENTRAL BANK Especially the volume of smaller bank loans < € 250.000 decreased Q4 2013 Total volume of smaller loans is € 15 billion which is only 11% of the total credit volume. But, as much as 85% of SMEs has a smaller loan at the bank In comparison: the volume of credit between € 250k - € 1 million is € 35 billion. This covers only 10% of the SMEs with a bank loan. Only 5% of the SMEs have a loan > € 1 million http://www.dnb.nl/nieuws/nieuwsoverzicht-en-archief/dnbulletin-2014/dnb309784.jsp
WHAT DOES IT MEAN FOR INTERMEDIAIRIES LIKE ACCOUNTANTS?  Credit applications are not granted  Clients go bankrupt, are dissatisfied and/or emotional  Startups are not able to launch, take overs and planned acquisitions are delayed or are a dead end  Less finance applications requested by the intermediairies office And the intermediairy’s own finance is getting more difficult, there is the lack of trust because of (inter)national incidents and the automation development has a great impact on operations
INFOGRAPHIC “DE ZAAK” JULY 2014 And what when the economy picks up? Finance problems will worsen http://fd.nl/economie-politiek/898898/ser-waarschuwt-voor-marktfalen-bij-haperende-kredietverstrekking-aan-mkb
FORTUNATELY, GOVERNMENT.. March 2014: Knot, president of DNB, welcomes alternative finance like crowdfunding (NRC) March 2014: Economic Affairs Minister Kamp starts education program for Crowd Funding (RTLZ) April 2014: The situation in which regulation is an obstacle for sound modelling of alternative forms of finance, that clearly meets the consumer and SME need, should be prevented in any case. (Minister of Finance Dijsselbloem, website Ministery of Finance)
PANTEIA SEPTEMBER 22ND 2014 Decrease of banking credit brings opportunities for alternative finance •Especially for credit < € 250k •More clarity (regulation) so alternative financers are able to present themselves better and make partnerships •Collaboration between old and new finance suppliers http://www.accountant.nl/Accountant/Nieuws/Krimp+bancair+krediet+biedt+mogelijkheden+voor+alt.aspx
MEANWHILE, HAPPENING IN THE SECTOR.. This february trade organisation “Nederland Crowdfunding” is established to stimulate awareness and to inform about risk. You need to meet certain standards to become a member Crowdaboutnow*, Geldvoorelkaar, One Planet Crowd, Share2start, Symbid, Wekomenerwel became the first members and with these platforms the trade organisation represents 95% of the crowdfunding market for the finance of entrepreneurs (* not a member now) The management board consists of Willem des Tombe (wekomenerwel), Edwin Adams (geldvoorelkaar), Maarten Bouw (share2start) and director Simon Douw (Douw & Koren) They made a code of conduct and organized the “Crowdfunding Week” in september sponsored by Economic Affairs
THE YEARS BEFORE,… AND AFTER Crowdfunding figures in the Netherlands 2011 € 2,5 million 2012 € 14 million 2013 € 32 million This year is € 80 – 100 million is expected In 2015 € 250 million is expected http://www.nu.nl/ondernemen/3778182/crowdfunding-gaat-grote-publiek.html http://www.elsevier.nl/Economie/nieuws/2014/9/100-miljoen-door-crowdfunding-1605589W/
ALTERNATIVE FINANCE Crowdfunding is going mainstream: over 900 projects crowdfunded first half year 2014 (Douw & Koren 2014)
REMARKABLE • Worldwide the Netherlands are in top 4 crowdfunders in the world http://newsmonkey.be/article/22114 https://youngstartup.nl/blog/post/crowdfunding-groeit-in-nederland-harder-dan-in-andere-landen/ http://www.douwenkoren.nl/crowdfunding-in-de-nederlandse-wet/ • It’s basically about business crowdfunding in the Netherlands
CROWDFUNDING, HOW? Donations are niceeee, but amounts are not large 75% of the Dutch Kickstarter projects fail Successrate of main SME loan platform(s) is over 90% Equity? Ehmm
OPPORTUNITY BESIDES SME SITUATION Dutch citizens are looking for more return on their savings and investments There is a lot media attention for crowdfunding Citizens are getting used to crowdfunding and the opportunities the sharing economy brings Dutch citizens always gave a lot money to good causes. Now they can earn money with it. Beside that, they just want to know what happens with their money
PLATFORMS Total number of crowdfunding platforms: +/- 85 Lending platforms for entrepreneurs: -Geldvoorelkaar -The Dutch Deal -Crowdaboutnow -Oneplanetcrowd -Wekomenerwel -Onderlingkrediet -Leapfunder -Share2start -Fundyd -Massafinanciering -Kapitaalopmaat -Collincrowdfund
PLATFORMS Niche platforms are entering the market like:  Fundaplant  Yournalism  Crowdbuilding  Dutchdesignstarter  tilburgvoorcultuur
PLATFORMS AND BANKS Platform by a bank: Seeds (ABN) Platform by an insurer: doorgaan.nl Qredits: financed by banks and insurers Loans from october ‘14 <€250k July 2014 5000 credit/loans have been issued for € 90 million http://www.deondernemer.nl/deondernemer/669777/Meer-krediet-voor-MKB.html Government stimulates entrepreneurship by favourable conditions like BMKB & subsidies and increase of Qredits loans http://www.rvo.nl/sites/default/files/Overzicht%20MKB%20regelingen%20AgentschapNL_0.pdf
HYBRID FINANCE SOLUTIONS Crowdfunding, banks, Qredits, factoring, leasing, credit unions, informals and other alternatives can all work together in total transparancy There is an important advising role for accountants and matchmaking companies National authorities want finance shop for SMEs to stimulate productive use of finance opportunities http://www.mkbservicedesk.nl/9619/financieringswinkel-voor-mkb.htm
QUESTIONS? Daphne Habets Invitations are welcome! Click on the logo
LET’S GO CROWDFUNDING! the Netherlands

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Let’s go crowdfunding! Overview SME credit & crowdfunding in the Netherlands Daphne Habets

  • 1. LET’S GO CROWDFUNDING! SME Credit & Crowdfunding in the Netherlands Daphne Habets October 2014
  • 3. Cost aware Innovation Direct communication Water vital topic MEET THE DUTCH Extremely internet literate Saving in nature >25 y/o International & trading
  • 4. HOUSTON, WE’VEGOT A PROBLEM! <MKB Nieuws> •News Finance SME still a problem December 2013 According to RVO.nl it is very difficult for entrepreneurs to have their plans financed March 2014 '‘Entrepreneurs see more opportunities for growth regarding the ending crisis situation. Unfortunately they now have a weaker financial position, there is an increased risk for banks and there are insufficient alternatives for bank finance'', Minister of Economic Affairs Kamp says. July 2014 Nu.nl OESO : SMEs have difficulty to find finance for innovation and growth. This could weaken a strong economy growth in the future March 2014 Rijksoverheid.nl Accountants could play a key role in SME finance. But their knowledge about the subject is too poor, critics say. Especially when it comes to hybrid solutions, the inexperience factor is crucial. July 2014, Accountant.nl Government acknowledges distressing situation SME finance April 2014, RTLNieuws.nl
  • 5. WHAT DOES THE SME MARKET LOOK LIKE? 99,8% of the companies in the Netherlands is SME (1,1 million) Banks have € 143 billion in SME credit (2013) http://www.mkbservicedesk.nl/9619/financieringswinkel-voor-mkb.htm / http://www.dnb.nl/nieuws/nieuwsoverzicht-en-archief/dnbulletin-2014/dnb309784.jsp http://www.mkbinbeeld.nl/dl/mkbinbeeld-rapport.pdf €353 billion total business (including SME) credit (2012) file:///D:/Eigenaar/Mijn%20documenten/Downloads/kredietverlening-aan-het-mkb%20(5).pdf http://www.banken.nl/bankensector/bankensector-nederland 2013-1 2012-1 Own bank 64% 75% Other bank 27% 21% Family & Friends 3% 3% Suppliers 6% 3% Other 12% 9% Main banks Rabobank 44% marketshare in banking SME credit* ING ABN SNS Bank *excluding farmers
  • 6. FINANCE CHOICES FOR SME Source: Banken.nl december 2013, TNO poll 1.100 SMEs http://www.banken.nl/nieuws/1753/ing-gebruik-van-alternatieve-financieringsvormen-beperkt 1 . Own resources 2. Bank
  • 7. SITUATION NOW When a SME entrepreneur needs external finance, 4 of 5 times it’s a bank finance in Europe. In the US it’s one of 5 Since the crisis, 32% of present credit applications are granted Situation in the Nederlands is most worsened according to ECB (from about 50% to 32% corrected for number of applications) http://www.nrc.nl/carriere/2013/11/14/ecb-nederlandse-mkber-heeft-meeste-moeite-lening-te-krijgen/ 75% of entrepreneurs in SME sector is dissatisfied about banking finance
  • 8. I CAN’T GET NOSATTISFACTION! NO NO NO Dutch SMEs are more dissatisfied (20%) about access to finance than German (8%), French (15%) or Belgian (12%) entrepreneurs Source: SME access to finance (SAFE) survey of the European Union It’s not only recent Source: OECD
  • 9. RECENT STUDY CENTRAL BANK Especially the volume of smaller bank loans < € 250.000 decreased Q4 2013 Total volume of smaller loans is € 15 billion which is only 11% of the total credit volume. But, as much as 85% of SMEs has a smaller loan at the bank In comparison: the volume of credit between € 250k - € 1 million is € 35 billion. This covers only 10% of the SMEs with a bank loan. Only 5% of the SMEs have a loan > € 1 million http://www.dnb.nl/nieuws/nieuwsoverzicht-en-archief/dnbulletin-2014/dnb309784.jsp
  • 10. WHAT DOES IT MEAN FOR INTERMEDIAIRIES LIKE ACCOUNTANTS?  Credit applications are not granted  Clients go bankrupt, are dissatisfied and/or emotional  Startups are not able to launch, take overs and planned acquisitions are delayed or are a dead end  Less finance applications requested by the intermediairies office And the intermediairy’s own finance is getting more difficult, there is the lack of trust because of (inter)national incidents and the automation development has a great impact on operations
  • 11. INFOGRAPHIC “DE ZAAK” JULY 2014 And what when the economy picks up? Finance problems will worsen http://fd.nl/economie-politiek/898898/ser-waarschuwt-voor-marktfalen-bij-haperende-kredietverstrekking-aan-mkb
  • 12. FORTUNATELY, GOVERNMENT.. March 2014: Knot, president of DNB, welcomes alternative finance like crowdfunding (NRC) March 2014: Economic Affairs Minister Kamp starts education program for Crowd Funding (RTLZ) April 2014: The situation in which regulation is an obstacle for sound modelling of alternative forms of finance, that clearly meets the consumer and SME need, should be prevented in any case. (Minister of Finance Dijsselbloem, website Ministery of Finance)
  • 13. PANTEIA SEPTEMBER 22ND 2014 Decrease of banking credit brings opportunities for alternative finance •Especially for credit < € 250k •More clarity (regulation) so alternative financers are able to present themselves better and make partnerships •Collaboration between old and new finance suppliers http://www.accountant.nl/Accountant/Nieuws/Krimp+bancair+krediet+biedt+mogelijkheden+voor+alt.aspx
  • 14. MEANWHILE, HAPPENING IN THE SECTOR.. This february trade organisation “Nederland Crowdfunding” is established to stimulate awareness and to inform about risk. You need to meet certain standards to become a member Crowdaboutnow*, Geldvoorelkaar, One Planet Crowd, Share2start, Symbid, Wekomenerwel became the first members and with these platforms the trade organisation represents 95% of the crowdfunding market for the finance of entrepreneurs (* not a member now) The management board consists of Willem des Tombe (wekomenerwel), Edwin Adams (geldvoorelkaar), Maarten Bouw (share2start) and director Simon Douw (Douw & Koren) They made a code of conduct and organized the “Crowdfunding Week” in september sponsored by Economic Affairs
  • 15. THE YEARS BEFORE,… AND AFTER Crowdfunding figures in the Netherlands 2011 € 2,5 million 2012 € 14 million 2013 € 32 million This year is € 80 – 100 million is expected In 2015 € 250 million is expected http://www.nu.nl/ondernemen/3778182/crowdfunding-gaat-grote-publiek.html http://www.elsevier.nl/Economie/nieuws/2014/9/100-miljoen-door-crowdfunding-1605589W/
  • 16. ALTERNATIVE FINANCE Crowdfunding is going mainstream: over 900 projects crowdfunded first half year 2014 (Douw & Koren 2014)
  • 17. REMARKABLE • Worldwide the Netherlands are in top 4 crowdfunders in the world http://newsmonkey.be/article/22114 https://youngstartup.nl/blog/post/crowdfunding-groeit-in-nederland-harder-dan-in-andere-landen/ http://www.douwenkoren.nl/crowdfunding-in-de-nederlandse-wet/ • It’s basically about business crowdfunding in the Netherlands
  • 18. CROWDFUNDING, HOW? Donations are niceeee, but amounts are not large 75% of the Dutch Kickstarter projects fail Successrate of main SME loan platform(s) is over 90% Equity? Ehmm
  • 19. OPPORTUNITY BESIDES SME SITUATION Dutch citizens are looking for more return on their savings and investments There is a lot media attention for crowdfunding Citizens are getting used to crowdfunding and the opportunities the sharing economy brings Dutch citizens always gave a lot money to good causes. Now they can earn money with it. Beside that, they just want to know what happens with their money
  • 20. PLATFORMS Total number of crowdfunding platforms: +/- 85 Lending platforms for entrepreneurs: -Geldvoorelkaar -The Dutch Deal -Crowdaboutnow -Oneplanetcrowd -Wekomenerwel -Onderlingkrediet -Leapfunder -Share2start -Fundyd -Massafinanciering -Kapitaalopmaat -Collincrowdfund
  • 21. PLATFORMS Niche platforms are entering the market like:  Fundaplant  Yournalism  Crowdbuilding  Dutchdesignstarter  tilburgvoorcultuur
  • 22. PLATFORMS AND BANKS Platform by a bank: Seeds (ABN) Platform by an insurer: doorgaan.nl Qredits: financed by banks and insurers Loans from october ‘14 <€250k July 2014 5000 credit/loans have been issued for € 90 million http://www.deondernemer.nl/deondernemer/669777/Meer-krediet-voor-MKB.html Government stimulates entrepreneurship by favourable conditions like BMKB & subsidies and increase of Qredits loans http://www.rvo.nl/sites/default/files/Overzicht%20MKB%20regelingen%20AgentschapNL_0.pdf
  • 23. HYBRID FINANCE SOLUTIONS Crowdfunding, banks, Qredits, factoring, leasing, credit unions, informals and other alternatives can all work together in total transparancy There is an important advising role for accountants and matchmaking companies National authorities want finance shop for SMEs to stimulate productive use of finance opportunities http://www.mkbservicedesk.nl/9619/financieringswinkel-voor-mkb.htm
  • 24. QUESTIONS? Daphne Habets Invitations are welcome! Click on the logo
  • 25. LET’S GO CROWDFUNDING! the Netherlands