Kathmandu, August 4, 2016: Nepal Entrepreneursâ€™ Hub recently organized an interaction programme in the capital to discuss the capacity and potential of crowdfunding in Nepal. The programme discussed on how crowdfunding can be an effective way to bring in investments for entrepreneurs and organizations to take their projects and ideas ahead, ultimately helping to reduce brain drain from Nepal create more jobs in Nepal itself.
In the programme, Hong Sin Kwek, Founder and CEO at Phoenixict Group, also the creator of CrowdFunding Asia, an organization committed to supporting Asiaâ€™s potential and innovation, leveraging on crowdfunding as a strong alternative funding for startups, talked about the crowdfunding platform and the how to use it. She discussed about the disruptive opportunities and traditional sustainability, clarifying the concept of LEAP (Learn, Explore, Adopt, and Practice) and highlighted the realities of crowdfunding. â€œCrowdfunding is actually a concept where someone having an idea, but lacking funds to start with, will be supported by raising funds through an alternative source. As of now, about $3.4 billion has already been raised through crowdfunding using various digital technologies,â€ she said. â€œOut of the four types of crowdfunding practices, i.e. equity based, donation based, lending based and reward based crowdfunding, the reward based is an easy to do technique, not needing much legal procedure in the case of Nepal,â€ she added.
Mark Sears, Founder of CloudFactoryÂ who also specializes in social entrepreneurship, startups and crowdsourcing, shared his experiences on crowdfunding, and raising 5 million through the platform. â€œI find crowdfunding in Nepal more challenging due to different legal restrictions. The idea of looking at network is an effective way of raising capital for startups and also bootstrapping can be very much effective way,â€ he added. He also shared how micro-finances, cooperatives and Angel investors can be other attractive alternatives for source of funding.
Similarly, Saroj K Ghimire, Advocate of the Supreme Court of Nepal shared the legal aspect of the process of crowdfunding in Nepal. â€œThough there is no legal provision for crowdfunding in Nepal yet, we can initiate this work following some legal process, as it is also not restricted,â€ he said. â€œFor this, we lawyers at the Nepal Bar Association will discuss about having provision of such laws on crowdfunding, ultimately promoting the start-up scene in Nepal,â€ he added. â€œIn the case of Nepal, since every fund transfer needs to be carried out through banks and every source of fund needs to be mentioned, there is some hassle on initiating the new process. But, the new technique will surely be utilized for the greater goodâ€ he shared.
By Sangita Tiwari