The Crowdfunding Model Has Allowed 225 Projects To Be Financed So Far This Year in Colombia

Within the framework of the World Investor Week, they announced that as of October 4, 2024, 225 productive projects have been financed through collaborative financing companies (crowdfunding) for a value of $102.87 billion. These resources come from 86,318 contributors.

Of the 225 productive projects financed to date, 223 have issued collaborative financing securities representing debt for a total of $96.67 billion.

Investor Week is a global initiative promoted by the International Organization of Securities Commissions, IOSCO, and led in Colombia by the Colombian Financial Superintendence. It focuses on the importance of investor education and protection to highlight the different proposals of securities regulators.

This is the eighth consecutive year in which financial education activities are being carried out for financial consumers and this year one of the tools that is being sought to be promoted is collaborative financing, crowdfunding.

In Colombia, there are two platforms for collaborative securities financing: a2censo (linked to the Colombian Stock Exchange – BVC) and Bloom Crowdfunding Sociedad de Financiación Colaborativa SA, both under the supervision of the Colombian Financial Superintendence.

Collaborative equity financing is a relatively new activity in the country, with great potential for growth and development. Its objective is to offer companies that do not have access to the public securities market or traditional financing from the financial sector an alternative to obtain resources through a collaborative model, known as crowdfunding

The regulation of the crowdfunding sector in Colombia is in progress

There is currently a draft decree seeking to allow individuals to finance productive projects through crowdfunding platforms. Currently, only companies, independent assets, closed-end collective investment funds, private equity funds and securitization processes can be financed.

In addition, this draft decree would allow managers of crowdfunding platforms to offer additional services to productive projects, such as: technical assistance for the preparation, drafting and presentation of the documentation necessary for the issuance of securities; and technical support in structuring the financing conditions of the projects.

The decree also develops the concept of classification of productive projects that must be carried out by collaborative financing platforms . It establishes that this classification must consider both the relevant information of the project and the financial solvency of the recipient.

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(Featured image by Flavia Carpio via Unsplash)

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