by Stefano Tresca | Press
Crowdfunding of sex comes from the UK
Italian online site EconomyUp looks at Crowdfunding, Sextech and covers how AXF created a platform dedicated to the adult industry. Translated by Google translate.
For those who want to invest in Sextech without expelling there are regulated English Consob platforms that provide security and privacy. So the British ecosystem supports a market that favites the growth of the fintech.
The financing market has changed forever when Kickstarter and Indiegogo have reached the general public. Today is changing again.
If you have a computer you've probably already heard about Kickstarter and Indiegogo, the two most popular crowdfunding platforms in the network. Thanks to these websites any businessman can ask the public (in English "Crowd") a financing (in English "Funding"). The business explanation is already in the name "Crowd + Funding = Crowdfunding". But you know, Americans are good at marketing.
More than just pure funding, the two platforms offer a pre-sales service. The public can buy a product that does not yet exist, helping the entrepreneur create it.
There are many failures, some scams, but the system is growing steadily. L ' Amanda Palmer Album ($ 1.2 million raised), the Veronica Mars movie ($ 5.7 million), and virtual reality glasses Oculus Rift (sold to Facebook for $ 2 billion) would never be born without the crowdfunding sites.
In some cases, the entrepreneur does not have a physical product that can be produced within a few months. In this case, crowdfunding allows you to fund by offering public actions to the public without the cost of listing (among the most popular sites in this sector: Seedrs and CrowdCube ), or to apply for a loan (an English example is the Funding Circle While in Italy I had the pleasure of knowing Credimi ).
Sextech (sex + tech) is the name created by the Anglo-Saxon world to represent this market, and is the exception to the rule. There are some success stories like AutoBlow - whose name quite clearly understands the features of the product - but Sextech products usually have difficulty raising funds.
The reason is not necessarily economic or moral, but social. The historian of his investments on basic crowdfunding platforms is public. Often sites warn your friends on Facebook that you've participated in a campaign. This transparency is wonderful to create a community of fans of the same hobby, a little less if you decide to invest in the production of a pornographic film or robot with particular functions.
With a global economic crisis always around the corner, and confusion related to Brexit, it is no coincidence that the United Kingdom has the most favorable legislation in the world for crowdfunding. Each year hundreds of millions of investments from across Europe are poured into the crowdfunding campaigns run in the UK.
Above all, the English do not get too much trouble supplying crowdfunding licenses in a particular industry like Sextech.
Reasoning is simple and practical, just like the English. If funds are limited in Sextech because investors are too embarrassed to share investments with friends, simply create crowdfunding platforms as dedicated AdultXFunding.
These sites offer investments in a single sector - Sextech - and are serenely regulated by FCA, Consob English, like any other crowdfunding platform.
Specialization reduces embarrassment. You can not meet a Facebook friend by chance. If you are present on the platform you made your own choice.
What is Sextech?
BeyondBank is the column of EconomyUp where we talk about Fintech, the meeting between finance and technology. It may seem curious to talk about sex in a series of articles where we usually deal with banks, Bitcoin and payment systems. We do it for the same reason that the FCA provides English licenses for the industry.
With an annual $ 3.2 billion annual fundraiser, crowddowning is one of the major alternative banks and traditional finance tools. Talking about crowdfunding sites means talking about Fintech 100%, no matter how the funds are invested.
This is not an exhortation to open the Italian market to sex, it is only a consideration: competition between nations is no longer founded on the armies, not even on the industries, but on the rules and capability to attract capital.
Some nations may choose more morally (or moralist) markets and have all my respect. The English, always very pragmatic, have decided to attract taxes and jobs even in a particular industry such as Sextech.
Jobs typically boring as finances or regulators in London may be filled with surprises.
Written by Stefano Tresca. He has been living since 2010 in London where he is a founding member of Level39, the world's largest startup fintech accelerator. His latest book is "Future Cities", Amazon's bestseller.
Original article in Italian at EconmonyUp