In partnership with Seedrs and KissKissBankBank, ING Belgium is launching a fast-track procedure for its business clients on these two crowdfunding platforms. This will enable entrepreneurs to diversify their funding sources and also to test their projects with a broad audience.
For entrepreneurs who are driven by innovative ideas, a classic bank loan is not always the best or only solution. Both entrepreneurs and banks can benefit from a diversified funding combination. ING Belgium will now be able to offer projects that it believes will get added value from (partial) financing through crowdfunding, a fast-track procedure at both Seedrs and KissKissBankBank.
Using the ING fast track procedure, it only takes the entrepreneur a couple of clicks to get access to the selected platform. Seedrs and KissKissBankBank will then swiftly get in touch with the entrepreneur and give him a first indication on the suitability of the project for their platform and on the chances to succeed. The fast track procedure can save the entrepreneur a lot of time and effort and improves the entrepreneur’s chances on successfully completing his crowdfunding campaign.
Says Erik Van Den Eynden, Head of Midcorporates & Institutionals ING Belgium: “In our efforts to help our customers keep a step ahead in their business, we are going further than traditional bankers. Our partnership with KissKissBankBank and Seedrs is an example. Our aim is to strengthen our customer’s project and to support them in the growth of their business. Our role is therefore much larger than that of your classic lender: we are a collaborative partner and advisor.”
Entrepreneurs who have access to several funding sources automatically find themselves in a more comfortable financial position. When assessing a loan application, banks naturally also look at the makeup of the company’s resources. Through crowdfunding, entrepreneurs can therefore reinforce their business as well as their position when applying for a loan.
At the same time a crowdfunding campaign is also a test for the entrepreneur’s project. Whoever wants to invest in the project must believe in the product or service that it will offer. It thus gives the entrepreneur a chance to estimate whether the market is ready for such products or services. The exposure to a broader audience of course also creates a good marketing opportunity for an enterprise.
Thanks to the partners with which ING Belgium works, projects and entrepreneurs enjoy international visibility as well.
Seedrs and KissKissBankBank each have their own distinct business model that aims to offer the chance to entrepreneurs to have their project funded by a broad audience of investors through using their respective online platforms.
When one of the platforms receives a project via the ING fast track procedure, it is assessed within two days at most whether or not the project is suitable for the respective platform and what the chances of success are. If the project receives a positive appraisal from the platform, the entrepreneur can immediately kick off his crowdfunding campaign, supported by the platform.
Seedrs targets entrepreneurs who are offering part of the shareholding in their company in exchange for funding for their project. In other words, interested investors buy a share in the company in which they are investing.
Jeff Lynn, co-founder and CEO of Seedrs: “We are very excited to be working together with ING in making equity crowdfunding more easily available to the Belgian business community. To our knowledge this is the first time that a well-respected, global financial institution like ING has partnered with a leading international equity crowdfunding platform like Seedrs, and we think this relationship is very encouraging for the future of business finance. We’re proud to have been chosen as ING’s partner for this venture, and we see our selection as further validation of our “equity crowdfunding done properly” approach.”
KissKissBankBank targets independent creative individuals looking for funding. Those who put money into a project via KissKissBankBank will get remuneration in kind. The nature of the reward is often defined by the type of project and can for instance be a discount or an exclusively customised product.
Vincent Ricordeau, Co-Founder and CEO of KissKissBankBank: “We are thrilled to announce our first large-scale partnership in Belgium and Luxembourg. The ING-KissKissBankBank partnership is an important step in the development of crowdfunding that demonstrates how it can complement traditional financing methods.”
Both Seedrs and KissKissBankBank already have extensive experience. Over 250 projects have been funded through Seedrs and KissKissBankBank has already collected more than 38 million euro for creative entrepreneurs.
In addition to her role as lender and as collaborative partner and expert, ING Belgium can present its customers with an additional funding offer : Equity-based crowdfunding, as well as reward-based crowdfunding.