Published by Gbaf News
Posted on August 25, 2016
Norwegian FinTech company, Cloud Solutions which develops Cloud Insurance a software-as-a-service for the insurance industry, has become the first ever Norwegian equity crowdfunding success using Finland-based Invesdor’s crowdfunding platform. Cloud Solutions saw its equity offering oversubscribed, raising almost twice its original target.
The success of the equity offering hinged on opening up access to investors across the Nordics. This was made possible by another Norwegian company, Signicat, the first and largest identity assurance provider in the world. Organizations typically use Signicat’s services for customer on-boarding and authentication as well as digital signatures.
In order to participate, equity crowdfunding legislation stipulates that investors are subjected to know your customer (KYC) verification, among other checks, including the submission of physical documentation such as passports. This creates a challenge for companies looking to raise funds from investors in multiple markets.
Invesdor’s partnership with Signicat meant that Norwegian, Swedish, Danish and Finnish investors could participate in the funding round using eIDs such as BankID, NemID, banking credentials and mobile certificates issued in each country.
“The result speaks for itself: over subscription and an investor group that matches our company very well,” said Axel Sjøstedt, CEO at Cloud Solutions.
“We want to offer businesses and investors a user-friendly and secure service for organizing cross-border funding rounds easily, and authenticating investors and entrepreneurs is a big part of that,” said Lasse Mäkelä, CEO at Invesdor. “However, authentication services are not our core business, so we wanted an experienced partner who could offer authentication services that investors in our target markets are familiar with. Signicat worked well for Cloud Solutions’ equity offering, as it has for dozens of other funding rounds on our platform.”
“With over $34bn raised globally through crowdfunding last year alone it is clear that asking a large number of people for a small amount of money is here to stay. As the market matures companies are looking to open up access to investors from around the world to secure the best valuation and the best investors to meet their ambitions. Historically this has been largely prohibited by KYC regulation, until now,” said Antti Harsunen, Signicat Country Manager for Finland. “By allowing investors from other markets to use their existing eIDs, crowdfunding platforms can be truly global, boosting value for all those involved. The success of Cloud Solutions with Invesdor is a testament to its potential.”
Norwegian FinTech company, Cloud Solutions which develops Cloud Insurance a software-as-a-service for the insurance industry, has become the first ever Norwegian equity crowdfunding success using Finland-based Invesdor’s crowdfunding platform. Cloud Solutions saw its equity offering oversubscribed, raising almost twice its original target.
The success of the equity offering hinged on opening up access to investors across the Nordics. This was made possible by another Norwegian company, Signicat, the first and largest identity assurance provider in the world. Organizations typically use Signicat’s services for customer on-boarding and authentication as well as digital signatures.
In order to participate, equity crowdfunding legislation stipulates that investors are subjected to know your customer (KYC) verification, among other checks, including the submission of physical documentation such as passports. This creates a challenge for companies looking to raise funds from investors in multiple markets.
Invesdor’s partnership with Signicat meant that Norwegian, Swedish, Danish and Finnish investors could participate in the funding round using eIDs such as BankID, NemID, banking credentials and mobile certificates issued in each country.
“The result speaks for itself: over subscription and an investor group that matches our company very well,” said Axel Sjøstedt, CEO at Cloud Solutions.
“We want to offer businesses and investors a user-friendly and secure service for organizing cross-border funding rounds easily, and authenticating investors and entrepreneurs is a big part of that,” said Lasse Mäkelä, CEO at Invesdor. “However, authentication services are not our core business, so we wanted an experienced partner who could offer authentication services that investors in our target markets are familiar with. Signicat worked well for Cloud Solutions’ equity offering, as it has for dozens of other funding rounds on our platform.”
“With over $34bn raised globally through crowdfunding last year alone it is clear that asking a large number of people for a small amount of money is here to stay. As the market matures companies are looking to open up access to investors from around the world to secure the best valuation and the best investors to meet their ambitions. Historically this has been largely prohibited by KYC regulation, until now,” said Antti Harsunen, Signicat Country Manager for Finland. “By allowing investors from other markets to use their existing eIDs, crowdfunding platforms can be truly global, boosting value for all those involved. The success of Cloud Solutions with Invesdor is a testament to its potential.”
Explore more articles in the Top Stories category
