Crowd-funding as a support to Georgian Stock Exchange
12 July, 2012
Crowd-funding as a support to Georgian Stock Exchange

Many refer to crowd-funding as a “new phenomenon” (or – at worst – the “new bubble”). However, it is not as new as we may think; as a concept, it has been around for some centuries already. The novelty lies in the technologies and the mindset that are giving it a new momentum, technologies and mindset that we will consider in this chronological record of the main events leading to what we now refer to as crowd-funding.

 

If we accept the “web” and the “crowd” are two essential elements in defining Crowd-funding as an activity, the very first examples could perhaps be observed in the late ‘90s, when some Internet campaign funded projects and charity fundraising platforms started to appeal. This model was developed and expanded into what is known as peer-to-peer lending, an alternative to traditional bank lending, and it grew to accommodate the process of lending money outside of exclusively developing countries.

One of the first peer-to-peer lending sites to launch was Zopa, a London-based company providing an online money exchange service. Zopa operates within the UK, Italy and a service is being developed for Japan. In 2006, Prosper was launched in the US, following the same model. In 2007, Lending Club launched the second peer-to-peer lending site. Like KIVA, individuals submit requests for funding, which include a story, a picture and their credit risk. However, these platforms were not particularly successful in the beginning, possibly because of overly tight regulations, and maybe because society was not quite ready, yet.

As outlined above and as already mentioned in the last post, crowd-funding has strongconnections with the reach, empowerment and engagement of social media. The rapid evolution of social media is giving free rein to our social nature without the limits of any borders. For some time ‘Crowds’ have been forming affinities around interests and missions, creating new products and services, feeding innovation and, to using the Internet to exploit the spare processing power of millions of human brains. One of the results has been a new mindset built on trust and participation, ready to embrace diversity, capable of reinvent

ing itself, and empowered to change the world. Our need to support and get involved in projects we care about is deep rooted in our humanity as much as our tendency to improve things and innovate in order to live better.

Crowd-funding can be seen as a natural response to fill the gap left in capital formation and funding models in the modern society. March, 8 2012 in the House of Representatives crowd-funding initiatives were treated to a rare showing of bipartisanship. The House passed HR 3606 to make changes to USA securities laws allowing crowd-funded companies and other early-stage ventures to legally solicit investors. Now it is up to the Senate to pass its equivalent bill SB 1933, which is expected by most legislative analysts. Congress has gotten letters of support from hundreds of venture capitalists and corporate founders over the past several months. The question of the day is: Is there necessity to adopt similar law on crowdfunding in Georgia in order to lower investment threshold for small and medium size business ? As of today- Georgian Stock Exchange (GSE) - is the only organized securities market in Georgia. Designed and established with the help of USAID and operating within the legal framework drafted with the assistance of American experts, GSE complies with global best practices in securities trading and offers an efficient investment facility to both local and foreign investors.

Automated trading system of GSE can accommodate thousands of securities that may be traded by brokers from the workstations at the GSE floor or remotely from their offices. As of July 1, 2012 133 companies were traded on GSE, with total market capitalization of USD 0.86 billion and the average daily turnover of USD 391,605 . Variety of small and big size banks in Georgia do a good job in private banking; however a friend of mine running bakery shop would like to have a credit line as a backup to the family business and it might be crowd-funding which would help his business be prosperous. Let’s leave this issue for lawmakers and bankers. All that glitters is not gold and not necessarily good for Georgian small and medium size business, however crowd-funding might be a remedy.

Other Stories
“A lot of mothers and grandmothers in Georgia preserve the belief cultivated by Saint Nino on Georgian land” - Pope Francis in Tbilisi
Pope Francis held the Holly Mass at Tbilisi Mikheil Meskhi stadium. He arrived in Georgia yesterday
10 new buses begin to circulate in Tbilisi
10 brand new MAN buses were presented at Tbilisi’s Roses Square this morning.
Tearful photos shot 23 years ago – Families fleeing Abkhazia
Previously unknown photos, extremely touching and painful, taken exactly 23 years ago, have been published recently.
Georgia celebrates Elevation of the Holy Cross
September 27 marks Elevation of the Holy Cross known as Jvartamagleba in Georgian.
Write a letter to Tbilisi!
Write a letter to Tbilisi!
More and more people visit Tbilisi every year and many of them write very interesting articles about their experiences.
Renovated Aghmashenebeli Avenue opens in Tbilisi
Aghmashenebeli Avenue, from Marjanishvili Square to Saarbrucken Square, has been fully renovated within the framework of the City Hall's project New Tfilisi.
Historic day after 25 years: Leuville Estate returns to Georgia
Leuville Estate has been returned to Georgia. After 25-year wait, the relevant document was signed yesterday in Leuville-sur-Orge, France.
Snow forecast in Georgia
Snow forecast in Georgia
Sharp decrease of the temperature is expected in Georgia on 23-24 September.
Georgian Wine Week 2016 starts today
The Ministry of Agriculture and the National Wine Agency of Georgia are organizing the annual Georgian Wine Week for the third time in a row.
In pictures: Georgia's forgotten people – BBC
Twenty-five years after the fall of the USSR, many people struggling to find a home and a job in the former Soviet republic of Georgia
NASA engineer in Georgia - How science can take you to the stars
Perhaps many of you have dreamed of traveling through space or visiting NASA space center.
Lopota Cup 2016 - Tennis tournament for amateurs
From September 22 “Lopota SPA Resort” hotel-complex and Georgian Amateur Tennis Federation organizes the amateur tennis tournament – “Lopota Cup 2016”.
Leuville Estate to Be Returned to Georgia Friday
LEUVILLE - The historical Leuville Chateau Estate, located around 30 kilometers from Paris, France, is to be officially returned to Georgia on September 23.
Literary Contest Alerdi 2016 to be held in Georgia
Literary competition Alerdi 2016 will be held in Georgia by financial assistance from the Foundation of Children and Youth,
Education is the key to raise ASD awareness in Georgia, US Experts Say
Every year, we are witnessing a rise in the number of people that are diagnosed with autism spectrum disorder (ASD).
Meet 60-year-old Georgian woman who will drive new bus in Tbilisi
The driver of one of the German buses that are due to begin circulating the Georgian capital closer to the end of September is a woman.
First Crisis Center for Domestic Violence Victims Opens in Tbilisi
Georgia’s Ministry of Labor, Health and Social Affairs, UN Women and Swedish Development Agency opened the first crisis center
Girls Leading Our World – GLOW camp hosted in Georgia
Georgia has hosted the 14th Glow camp this summer, where out of 700 applications the best 100 were selected.
Air Taxis to appear in Georgia soon
Air Taxis will appear in Georgia from November.
New German buses to appear in Tbilisi from September
The Deputy-Mayor of Tbilisi Irakli Lekvinadze has published photos of new buses that are soon to begin operating in the city.
Batumi’s wise grandpa and his wishing tree
This iconic photo was shot at Batumoba Festival in Georgia’s beautiful coastal city of Batumi and it features a well-known elderly man
Disobedient passengers of Georgia’s double-decker trains
It turns out the double-decker trains are not good enough for some people in Georgia.
Georgia is 40th among 140 countries in Happy Planet Index
In Happy Planet Index Georgia has earned 31.1 points and is 40th happiest country on earth.
Wedding after 55 years of love – Elderly couple’s incredible photo shoot in Georgia
This love story began 55 years ago, when Eldar Margalitashvili married Nunu Beria
University metro station to be completed in May 2017
The construction of University metro station has entered the active phase.
PHOTO OF THE DAY
Other Stories
Various videos have been made that promote Georgia’s cultural heritage, historical sites and beautiful views of this tiny country.
Handmade ‘quiet books’ are very popular around the world and you can now see this interesting invention, that is very useful for children, in Georgia too.
While strolling through Tbilisi’s central Rustaveli Avenue one may come across an increasingly lovely older couple playing in the street for the passersby.
An interesting social experiment t has been carried out by Switch Communications under the order of UNICEF Georgia.
A few days ago a new project was initiated in Georgia, which envisages teaching Georgian language and Georgian folk music
Three orphaned female bear cubs, discovered on the streets of Tbilisi in Georgia after floods in June last year,
Doctors certified by German company Bredent Medical – one of the leading dental producers in the world, showcased a number of surgical operations
In relation to Easter celebration in Georgia, we present to you a beautiful Georgian polyphonic chant named Christ Has Risen
In early March filming of Samsung S7 Edge Vietnam commercials took place in Tbilisi, Georgia.
An emotional performance was witnessed in Georgia by the viewers of “Dancing with the Stars” TV show
GEL Exchange
USD
1
USD
2.3297
EUR
1
EUR
2.6037
GBP
1
GBP
3.0226
RUB
100
RUB
3.6790
October 2016
Mon Tue Wed Thu Fri Sat Sun
1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
31