Brussels buzzed with energy as the equity crowdfunding elite gathered for Euro CrowdCon 2024. Among industry giants like Republic and Crowdcube, representatives from Dacxi Chain were honored to take the stage. Our mission? To share a bold vision for the future of global equity crowdfunding—and the atmosphere was nothing short of electrifying.
The Convergence of Minds at Euro CrowdCon 2024
Euro CrowdCon 2024 was more than just an industry event; it was a crucible for innovation where groundbreaking ideas met actionable strategies. Leaders, innovators, and enthusiasts from around the world convened in Brussels’ historic conference halls.
As proud sponsors of this landmark event, our team engaged in a transformative fireside chat with Oliver Gajda, Executive Director at Eurocrowd. The discussion delved deep into the inevitability of global equity crowdfunding, the pivotal role of technology—particularly blockchain and AI—and the collaborative efforts needed to harmonize regulations across borders.
A key message that resonated with the audience was that blockchain tokenization finally solves the scaling issues and unlocks the expansion opportunities of cross-border crowdfunding. This technology can unleash the full potential of the equity crowdfunding business model, potentially scaling it 100 times over. We emphasized that the time has arrived for this transformation—the technology exists, and Dacxi Chain has emerged as a leader in this space. However, to realize this future, industry stakeholders must actively get involved. By embracing blockchain tokenization now, platforms can significantly expand the size of the industry and transform their businesses.
Dacxi Chain: Redefining the Equity Crowdfunding Landscape
Our mission at Dacxi Chain is clear: to serve as a catalyst for global equity crowdfunding. Drawing on decades of industry experience—including aiding in the listing of innovative companies on European exchanges and partnering with businesses across the continent—we are passionate about pioneering solutions that empower the industry.
In 2017, inspired by the transformative potential of blockchain technology, we launched Dacxi Chain with the goal of building a global network of interconnected platforms. We recognized that acceptance of blockchain would take time, and we’ve patiently awaited the maturation of critical technological developments like proof of stake and other advancements that enhance scalability and efficiency.
By positioning ourselves as the “Intel Inside” of crowdfunding, we provide the technological backbone that enables local platforms to achieve global reach. Our solutions are designed to integrate seamlessly, offering the infrastructure needed to navigate the complexities of cross-border investment.
The Imperative of Global Expansion: Why Now?
Global equity crowdfunding is no longer a distant aspiration; it is an imminent reality. Investors and entrepreneurs worldwide share a universal desire for cross-border investment opportunities. The technology to facilitate this expansion is already at our fingertips; the challenge lies in navigating the complex regulatory landscape.
“Regulatory issues are clear,” we acknowledged during our chat with Oliver Gajda, “but we believe that all of these can be addressed if the necessary protections exist.” We advocate for pioneering efforts to explore current possibilities, co-create solutions, and collaborate closely with policymakers to achieve regulatory harmonization. This collective effort promises significant rewards for all stakeholders involved.
Leveraging Technology: Blockchain and AI as Catalysts
Technology is the linchpin in transforming equity crowdfunding into a truly global marketplace. At Dacxi Chain, we leverage our expertise in blockchain, tokenization, and cryptocurrency—skills honed over years of dedicated development—to build robust platforms and integrate payment systems worldwide.
“Blockchain is simple,” we explained. “It’s a new type of database where ownership and transactions are inherently trusted.” This trustless system ensures secure, transparent transactions and ownership records, which are essential for cross-border investments.
We also highlighted the burgeoning role of artificial intelligence (AI) in equity crowdfunding. Beyond enhancing customer service and campaign effectiveness, AI has the potential to empower investors through personalized AI agents. These agents can significantly scale the number of investors and, more importantly, instill confidence to invest in multiple deals.
Balancing Regulatory Progress with Technological Innovation
While technology advances at a rapid pace, regulatory frameworks often lag behind. We acknowledged the extensive journey of the European Crowdfunding Service Providers Regulation (ECSPR) and the ongoing efforts toward regulatory convergence. “Regulatory compliance is not negotiable,” we stressed, but we also pointed out that existing regulations were not initially designed with cross-border crowdfunding in mind.
To bridge this gap, we advocate for proactive engagement with regulators and policymakers. “We have to be pioneers to prove what’s possible,” we stated. By demonstrating the potential economic benefits—such as job creation and wealth generation—industry players can influence political will and drive regulatory changes that facilitate global crowdfunding.
Navigating Regulatory Complexity in Global Markets
Expanding into global markets involves navigating a complex web of regulatory requirements across different jurisdictions. We collaborate with local partners who possess in-depth knowledge of their respective legal landscapes. “You know your local laws,” we emphasized. “These cannot be disregarded.”
Through cooperative efforts and adherence to compliance checklists, platforms can find interim solutions that, while not perfect from a user experience standpoint, allow them to “prove the concept” and pave the way for more streamlined approaches in the future.
Overcoming Profitability Challenges and Refining Business Models
Scaling to profitability remains a significant challenge for many crowdfunding platforms. We propose that cross border crowdfunding holds the key to unlocking scalability, identifying three critical factors:
- Access to Exciting Deals and Capital: There is no shortage of compelling investment opportunities or investors with capital. The challenge lies in attracting deals that can compete with, or complement, traditional venture capital offerings. Equity crowdfunding offers entrepreneurs the advantage of maintaining control while accessing capital more easily through a global investor base.
- Investor Engagement Beyond Local Deals: Platforms often focus narrowly on investments in their own deals rather than maximizing the potential from their investor base. By offering investors a steady flow of deals aligned with their interests—such as medical professionals investing in healthcare startups globally—platforms can enhance investor engagement and increase investment frequency.
- Scaling Operations: Without sufficient scale, senior personnel may become bogged down in time-consuming deal processes. A global network allows for operational scaling, freeing up resources to focus on strategic growth and investor relations.
Trust and Transparency: Cornerstones of a Global Network
Trust is the foundation of successful crowdfunding, especially on a global scale. Blockchain technology plays a crucial role by enabling a “zero-trust” environment where transactions and ownership are inherently secure. However, we caution that technology addresses only the transactional layer.
Establishing trust in deal standards and ensuring that offerings are accurate and credible is even more vital. We address this through the co-creation of standards and expectations, leveraging the collective power of the network to enforce compliance. Platforms that fail to adhere to these standards risk exclusion, which would significantly impact their market competitiveness.
To formalize these efforts, we support the Global Equity Crowdfunding Alliance (GECA), an independent body governed by a steering committee comprising industry leaders worldwide. GECA serves as a platform for co-creating industry standards and regulations, fostering a deeper understanding of the challenges we face. By building confidence among stakeholders, GECA represents a vital first step toward harmonizing global crowdfunding practices. Collaborating with local partners and regional organizations like Eurocrowd, GECA works to establish and uphold these industry standards, ensuring a consistent and trustworthy environment for all participants.
Harmonizing Global Regulations Beyond Europe
While the European Union has made significant strides with ECSPR, we recognize that “nowhere else is the sector as developed as the EU.” Other regions express interest in harmonization but face challenges due to a lack of coordination and confidence.
GECA aims to address these challenges by conducting research and publishing findings that underscore the necessity of regulatory harmonization—not just from a platform perspective but also considering investor interests. By presenting data-driven insights, GECA seeks to foster global collaboration and alignment in regulatory frameworks.
The Role of Governments and Regulators in Fostering Global Crowdfunding
We distinguish between the roles of governments and regulators. Regulators are responsible for overseeing compliance and maintaining market stability, while governments—particularly policymakers—should actively support the crowdfunding sector due to its potential to drive innovation and create high-paying jobs.
“We need to lobby by presenting them with research, opportunities, and solutions,” we asserted. By demonstrating tangible economic benefits, industry stakeholders can encourage governments to champion policies that facilitate global equity crowdfunding.
Embracing the Future: Global Equity Crowdfunding is Inevitable
Looking ahead, we envision an optimistic trajectory for the crowdfunding industry. Global equity crowdfunding is inevitable due to the universal desire for cross-border investment opportunities and the technological capabilities ready to support them. Blockchain and AI will be instrumental in powering this future, enabling platforms to manage an estimated 100 million investors and $100 billion in transactions.
The challenges lie in believing what’s possible and engaging in the co-creation of solutions. We emphasize the importance of collaboration over competition within the industry, as the real competitors are traditional venture capital firms and prevailing investor confidence levels.
At Dacxi Chain, we aspire to “catalyze the process and provide the tech infrastructure” for this decentralized network. The potential benefits are substantial, offering opportunities for initial funding, follow-on funding, coaching, and fostering vibrant investor communities.
Conclusion: Join Us in Shaping the Future
Our experiences and insights shared at Euro CrowdCon 2024 underscore a pivotal moment for the equity crowdfunding industry. The convergence of technology, investor enthusiasm, and collaborative efforts to harmonize regulations signal a clear path toward a global crowdfunding marketplace.
We invite stakeholders—including eFC partners, and industry peers—to join us. Engage with initiatives like the Global Equity Crowdfunding Alliance (GECA) or explore collaborations with us at Dacxi Chain. Your involvement can reshape the industry and unlock unprecedented opportunities for innovation, investment, and economic growth.
Join the Movement
Ready to make a significant impact? Everyone knows that blockchain tokenization is the key to scaling and expanding cross-border crowdfunding. The technology exists, and the leader has arrived—but we need you to get involved. Become a supporter of the Global Equity Crowdfunding Alliance (GECA) or sign up as an equity crowdfunding (eCF) partner with Dacxi Chain. Whether you’re an industry veteran or new to the scene, your participation can shape the future of global equity crowdfunding.
Let’s work together to turn possibilities into realities.
Thank you for being part of this exciting journey.
