Posts Tagged ‘crowdfunding’

Angela Lamont Lunar Mission One
60David Nikel

David NikelFebruary 12, 2015

Crowdfunding a Mission to Space

We are thrilled to welcome back Angela Lamont to Trondheim to deliver one of our Technoport 2015 keynotes. Luckily for us, she’s just as excited!

“I love Technoport! It has a unique blend of some unconventional, outside-the-box thinking with the more traditional “enquiring mind” way of examining things. I like the fact that it’s different, almost experimental, yet very pertinent to practical things.”

Angela is an award-winning broadcaster famous in the UK for bringing science to the mainstream through the BBC children’s show “It’ll Never Work”. Since then she’s presented from places as diverse as Buckingham Palace, the top of a volcano in Japan and from a fishing boat in a force 8 gale (whilst doing her own sound recording, as the sound man was out of action below decks).

She’s coming to Technoport 2015 to talk about her newest project, Lunar Mission One, where she works as a Director.

If you haven’t heard about Lunar Mission One, prepare yourself to hear about one of the most inspiring open research projects we’ve heard about in a long time. An exploratory robotic mission, it will use innovative drilling technology to deliver extraordinary new insights into the origins of the Moon and the Earth.

Lunar Mission One will also be a driver for learning more about our own planet and its history. The project will help fund an open digital record of life on Earth – of human history and civilisation, and a scientific description of the biosphere with a database of species. Publically owned and accessible to all, the Public Archive is a hugely ambitious plan that could only be resourced by a project of this scale.

Angela LamontAngela explains what the exploration aspect of the mission is all about:

“Despite being categorised as a space mission, it’s really an incredibly wide project. We need engineering technologies, not just space technology but things like drilling. We need analytics similar to what happened with the Rosetta project but instead of a comet we’ll be doing it on the moon. We’re even seeking new digital storage technology, with the capability to last a billion years. With technologies changing so fast, that’s not straightforward.”

“We’ll be storing two types of time capsule. One is an archive of life on earth, species, technology, culture and so on, with the help of partners such as big museums. Also, anyone can buy a digital memory box and decide what to send to the moon. Some people will send their family tree, some people will write a day in their life, keen photographers will store their photos in it, schools around the world will collaborate, and someone is even sending their top secret chocolate cake recipe!”

But how to pay for this?

Public money for these types of projects has been limited, so Angela and her team have turned to a subject close to Technoport’s heart: crowdfunding.

“Originally, we planned for space agency funding, a small amount of Government seed funding and other traditional space funding routes. As budgets got slashed, things weren’t moving forward so we had no other option. The nature of the project was always to be global collaboration to produce the most interactive space project in history. If it was traditionally funded, people would watch it with interest, but they wouldn’t any ownership. By crowdfunding, people all around the world can buy into the project, feel part of it and stay a part of it forever.”

“By choosing the unconvential route of crowdfunding, we are actually better able to meet our original objectives.”

Hear the full story at Technoport 2015

Angela will tell the Lunar Mission One story, focusing on the crowdfunding process and lessons learned during the project to date. Join us in Trondheim, Norway, on 18 & 19 March.

Live Crowdfunding
60David Nikel

David NikelFebruary 2, 2015

Live Crowdfunding Experience: Four Startups Announced

The jury has spoken and selected the four startup companies that will compete to sell shares to the public during the Technoport 2015 innovation conference.

As part of Technoport 2015 on the evening of 18 March, four startups will get the opportunity to present their ideas on stage in front of a live audience, competing not just their favour, but for their investment too. The audience is invited to buy available shares in the companies, giving the general public the chance to become an investor.

Last year’s success

Halvor Wold from AssiTech AS knows what it takes to succeed:

“We raised almost NOK 600,000 ($100,000) during last year’s event. It was a crucial part of our subsequent share issue that gave us the capital to further develop our AssiStep product.”

AssiTech is developing a new tool that will make it safer for the elderly and disabled to climb stairs. They were recently named one of the 20 most promising startup companies for 2015 by leading Norwegian technology magazine Teknisk Ukeblad.

“Taking part in the crowdfunding event was very important for us because the production of AssiStep is costly. Moreover we got into “smart money”, meaning that money has come from business people and investors with a large network. This provides new opportunities,” says Wold, who is the CEO and co-founder of AssiTech AS.

Wold believes crowdfunding is here to stay and believes it is a very effective way to reach out to many stakeholders simultaneously.

The Four Participants

Ads want to personalise advertising solutions for TV channels to the individual viewer to generate increased revenues for advertisers. This will be made possible using a software solution developed in collaboration with the College of Nord-Trøndelag and Innovation Norway during 2015. The company plans to take advantage of the increased use of mobile devices to browse TV channels and provide ecommerce directly via streaming.

Apraxim is a spin-off from the Norwegian University of Science and Technology (NTNU) in Trondheim. The five former NTNU students have developed the business simulator JetSim to supplement the teaching of economics and accounting. The simulator offers students the opportunity to manage businesses and compete against each other in a virtual marketplace, and to win they must put academic theory from the curriculum into practice. It is web-based and flexible, which means it can be adapted to different finance and accounting topics.

Telemotix have developed a mini computer, Telemotix TAG, which collects information about driver speed, acceleration, braking and more, to build an overall picture of how safe a driver is. This is intended to make car insurance cheaper for motorists and for insurers to avoid the most risky drivers. The company is about to begin a pilot project with one of Scandinavia’s largest insurance companies.

Vepak have developed a prototype machine to automate the filling of 40-litre bags with firewood. The innovation they have developed can pack a sack five times as fast as by hand and just as accurately. The developers have a background in mechanical engineering and mechatronics, as well as personal knowledge from the firewood industry. Vepak is starting to sign agreements with pilot customers.

Stay tuned to be first to hear when the crowdfunding campaigns go live.

Be there and see the action unfold

The Live Crowdfunding Experience is part of the Technoport 2015 conference. Join us in Trondheim, Norway, on 18 & 19 March as we seek to awaken the entrepreneurial mindset.

Live Crowdfunding
14Hermann Ørn Vidarsson

Hermann Ørn VidarssonDecember 8, 2014

Live Crowdfunding Experience: FAQ

Just like last year, the Live Crowdfunding Experience has sparked interest from startups the length and breadth of Norway.

We’re receiving many questions from curious entrepreneurs, so we took contact with Aleksander Langmyhr from FundedByMe, who in collaboration with Technoport, Innovation Norway, Kunnskapsparken Nord-Trøndelag and NTNU Accel, organises The Live Crowdfunding Experience.

Hello Aleksander. We have many exciting companies that have expressed interest in the event, while being a little unsure of the process. Can you explain how it works?

Hey, I can! The concept of equity crowdfunding is the still new so it’s understandable there are many questions. One can look at FundedByMe as a very good tool for companies considering raising capital to test interest in the market.

Let me take you through our process step by step.

Firstly, the company creates a presentation on the FundedByMe website. Those startups chosen for the Technoport event will be closely monitored by us to ensure they create the best possible presentation.

Do companies need this help?

Often they do. We have seen many good (and not so good) presentations on our site. I have personally worked with creating this type of presentation when I worked with the purchase and sale of large businesses, so the startups get a high level of help.

After companies have developed their presentation and are happy with it, they can publish it on the website. This is what we call “go live” on our site.

When your company is live on our site, anyone can view the presentation. If they think it’s interesting enough that they will consider investing, they can indicate their interest. This is done by pressing “invest” and indicating the sum they wish to invest.

So money is not transferred straight away?

Correct, there is no money transferred. It is only an indication that you are interested if the company chooses to fetch money at a later date. We see that almost all investors who express their interest do join the share issue, if and when the company implements it.

This leads me on to the next phase. When the company is “finished” on our platform, we have 45 days by default, so they see how many people have expressed an interest in investing.

And for how much …?

Yes that’s right, how many are interested in investing, and how much they have collectively indicated that they want to invest.

Sometimes the interest is very high and sometimes the interest is lower than we hoped for. Either way, the use of FundedByMe gives the company a good basis for deciding whether they choose to raise money or not.

After this process we come to the last step. When companies are finished on the platform (after about 45 days) they will decide whether to accept the investment offers or not.

So the startups can pick and choose?

Yes. If the company chooses to follow through with a share issue, they invite only the people they want to have as investors. If they are not experiencing enough interest and choose not to pick up the money, this of course is entirely up to them.

One last question, would you recommend companies to apply as a participant to Technoport 2015 in March?

Hehe, leading questions, but of course, yes! Normally, FundedByMe takes a percentages of money that companies choose to retrieve. For companies that are selected to participate in the Technoport event there is no charge at all, it’s completely free!

Everything is free?

Yes, everything is free, from our assistance to prepare a good presentation to the use of the platform itself. There are no direct costs for the startups, because our event partners Innovation Norway, Kunnskapsparken Nord-Trøndelag and NTNU Accel cover the cost.

In addition, participants will get a lot of attention through pitching on stage at Technoport 2015, in front of hundreds of people, just look how it went with Assistep Last year. Their participation did they subsequently received investment from a seed fund, in addition to over half a million kroner from investors who had expressed interest via the platform.

The deadline for applications is 15th December. See full details of the event and how to apply here.

Share the Problem
60David Nikel

David NikelOctober 5, 2014

The Power of the Crowd in Copenhagen

Regular readers of the Technoport Playground will know how proud we are of our Share the Problem concept. Our latest event was held last week at DIGS here in Trondheim, all about the future of the transport system in Norwegian cities. A full report is coming soon!

Our Share the Problem concept is one example of what is commonly referred to as crowdsourcing.

Definition of crowdsourcing

Definition via Google

Of course, we’re not the only organisation out there to embrace the power of “the crowd”

There’s a whole bunch of private sector companies, governmental organisations and charities doing similar things.

Introducing Crowdsourcing Week Europe

Crowdsourcing Week EuropeCrowdsourcing Week Europe 2014 explores the best practices in crowdsourcing and the collaborative economy that are fundamentally changing society, mindsets and possibilities across all industries.

Taking place from 14-16 October in Copenhagen, CSW Europe follows a successful global conference in Singapore that saw forward-thinkers from 31 countries converge to learn, network, and engage. CSW Europe’s program will provide an equally in-depth look at the impact of the crowd economy, crowdfunding, and crowd technologies—and what it means for you. Learn from 30+ crowd­sourcing experts at the frontier, discover what this shift means for your industry, and learn how to leverage the crowd for your organization.

Speakers comprise of pioneers that are leading disruptive, crowd-driven transformations in their industry. Nathan Waterhouse, openIDEO; Troels Lange Anderson, Lego; and Ken Webster, Ellen MacArthur Foundation are just a few of the speakers who will be highlighting how crowds are driving ideas, innovation, and acceleration.

A nice feature of this conference is the themed approach, allowing you to pick and choose the days most relevant to you:

  • Tuesday, October 14 – Crowd Economy: Big Picture Impact
  • Wednesday, October 15 – Crowdfunding: Invest, Innovate & Accelerate
  • Thursday, October 16 – Crowd Technologies & Business Models

Here at Technoport, we work with crowdfunding (Live Crowdfunding Experiment) and crowdsourcing (Share the Problem) on a regular basis so we’re confident this conference will be of interest to our crowd.

Check out the full agenda here.

roVsPWA
15Megan Jones

Megan JonesApril 16, 2014

Technoport 2014: Dimension10 develops 3D scanner

At Technoport 2014’s Live Crowdfunding Experiment, the first of its kind in Norway, three promising young tech startups will pitch their company to a crowd of investors. This week we hear from each of the startups in turn. We’ve heard about AssiStep and Rom & Tonik, now we hear from Krister Fagerslepp of Dimension10, developers of a 3D scanner.

What challenge does your product solve, and how is your solution innovative?

Our solution solves the difficulty of scanning living objects by scanning the entire subject at the same time within mililseconds. Our solution is innovative because it’s purpose built down to the software that controls it. Our innovation also lies in the areas of use, and how easily we can achieve an automatic process from scan to result.

Why did you decide to develop this company?

The origin for my project is my interest for immersive technology/Virtual Reality. I developed software for Oculus Rift as well as building my own unit before the developer kit hit the market. The 3D scanner is a result of experiments I did to create characters/avatars for this system. I would say the seed for this project was planted around 24 months ago. However, serious work was not initiated until a while after this.

What have you achieved so far?

Our 3D scanner is working and stable, with generally decent quality. We have developed the software and hardware to control the rig ourselves. However, the quality of scans still need improvement in our opinion. This means mainly that we need to add more cameras and flashes, to get more angles covered.

Where has your funding come from before?

Funding has come mainly from our own pockets.

Why are you seeking equity crowdfunding?

In order to speed up development we need money for things such as more/better hardware and bigger office space. Selling equity seems like a good way to raise funds in this project.

Where do you see your company in 5 years?

We see ourselves having a working scanner system that is simple enough to operate that we can hire almost anyone to operate it. Once this achieved, the only demanding job is occasional software updates and maintenance.  If we can achieve these goals, we have more than enough ideas to pursue in the field that will keep us occupied and plenty of IP to keep us going. We have no doubt that we will never a dull moment, and firmly believe that our companies ability to produce revenue extends far beyond  5 years.

Check out Dimension10’s FundedByMe campaign here!

Want to attend?

Learn more about the Live Crowdfunding Experiment and register for Technoport 2014.

Photo credit: Dimension10 

IMG_7958_2
15Megan Jones

Megan JonesApril 15, 2014

Technoport 2014: Rom & Tonik makes natural sound absorber

At Technoport 2014’s Live Crowdfunding Experiment, the first of its kind in Norway, three promising young tech startups will pitch their company to a crowd of investors. This week we hear from each of the startups in turn. First we heard about AssiStep, now up is Rom & Tonik, a company founded by Mats Solberg and Birgitte Røsvik.

What challenge does your product solve, and how is your solution innovative?

Our product is proven to be one of the most volume efficient sound absorption products on the market. We work towards reducing noise in office and public spaces to improve the working conditions. We are doing this through using natural rough wool as the actual absorbent. This is a whole different way to do it, and the unique felt that we produce in Mongolia is uniquely efficient. We have also developed a modular and very flexible system that allows the user a lot of freedom when configuring their FeltTile system.

Why did you decide to develop this company?

We wanted to start Rom & Tonik because we saw that there was a huge potential market in acoustic solutions for open offices and public spaces. We also saw the need to make use of the rough wool quality that the textile industry avoided in their products. Making use of a raw material that has a perfectly sustainable profile to solve a growing problem in the interior market made perfect sense. We decided to start Rom & Tonik after winning the regional finals of Venture Cup in Trondheim in the spring of 2012. The company was started in October 2012.

What have you achieved so far?

Since then, we have developed the profile of Rom & Tonik, worked intensely with developing our production and distribution line. We have been hard at work with finalizing our product design for FeltTile and finally we launched FeltTile and Rom & Tonik at Designers Saturday in Oslo Sept. 2013. In February this year, we were able to present FeltTile at the Stockholm Furniture Fair, the leading interior exhibition for the Scandinavian market. On a day-to-day basis we are hard at work with selling FeltTile and we have now sold more than 20 projects around Norway.

Where has your funding come from before?

We have received funding (etablérstipend) from Innovation Norway and Seed capital from Ålesund Kunnskapspark.

Why are you seeking equity crowdfunding?

After visiting Stockholm Furniture Fair we got interest from resellers all over the world. Now we want to start testing the Scandinavian market and establish our network beyond the Norwegian market. In parallel we are working with some very exciting new products with a very good supplementary potential to FeltTile. To be able to develop pilot projects with this new product, we will use some of the FundedByMe equity for product development as well.

Where do you see your company in 5 years?

In five years Rom & Tonik is substantial actor in the interior furnishing industry. The organisation has grown a lot, and we are the go-to company for acoustical solutions and soundproofing. We have our products installed in more than 20 countries in the world, and we have contributed to improve people’s working environment in every project we have participated in.

Check out the Rom & Tonik FundedByMe campaign here!

Want to attend?

Learn more about the Live Crowdfunding Experiment and register for Technoport 2014.

Photo credit: Mats Herding Solberg

AssiTech
15Megan Jones

Megan JonesApril 14, 2014

Technoport 2014: AssiStep helps the elderly

At Technoport 2014’s Live Crowdfunding Experiment, the first of its kind in Norway, three promising young tech startups will pitch their company to a crowd of investors. This week we’ll hear from each of the startups in turn. First up, AssiStep – a company created by Eirik Gjelsvik Medbø, Halvor Wold, and Ingrid Lonar. 

What challenge does your product solve, and how is your solution innovative?

One of the biggest obstacles for the elderly and people with mobility issues is stair climbing. It’s one of the most common reasons that people need to move away from their home. At the same time, stair climbing is the most effective training method in your own home, but the consequences from falling can be dramatic, which is illustrated by the 50 casualties and 30,000 injuries from stair falling each year in Norway alone.

If we can solve this problem by adding increased support, increased safety and stimulate people to continue to use their stairs, our users will become more independent, get increased exercise, and continue to live in their own home for longer.

Why did you decide to develop this company?

Through a large number of interviews with users and therapists, we learned  how big the stair climbing problem actually is, and that there aren’t good enough solutions out there today. By creating AssiTech AS, we can make people more independent, and at the same time establish ourselves in a market with a big growth potential over the coming years.

What have you achieved so far?

We’ve established a passionate and ambitious team that really wants to make a difference by creating innovative and user-friendly products. We’ve raised over 2 million NOK in soft-funding. We’ve developed a lot of prototypes, and  at this point are ready to produce the first series of AssiStep. AssiStep is a trademarked and patent-pending product.

Where has your funding come from before?

We’ve raised over 2 million NOK in soft-funding to date, from Innovation Norway, NTNU Discovery, our biggest customer NAV, and the Tekna scholarship 2013, in addition to the equity we’ve put in ourselves. We’re now at a stage where we need to raise private capital, in order to initialise production of the first 60 products.

Why are you seeking equity funding?

Because we know that a lot of people out there really believe in AssiStep, and want to see it go into production. Equity funding makes it possible for ordinary people to make a difference, by becoming a shareholder in a company with growth potential. In order for us to start delivering value to users and customers, we need to raise capital for production of our first 60 products.

Where do you see your company in 5 years?

In 5 years our product portfolio have grown to something more than AssiStep, making use of our strategic distribution partners outside Norway. AssiStep is by then an established product also within markets outside Norway, and should be the natural choice for stair mobility. Our organisation consists of creative people that wants to make a difference by creating innovative products that solve big problems.

Check out the AssiStep Funded by Me campaign here!

Want to attend?

Learn more about the Live Crowdfunding Experiment and register for Technoport 2014.

Photo credit: AssiStep (from left to right, Eirik Gjelsvik Medbø, Ingrid Lonar, Halvor Wold)

CFX
15Megan Jones

Megan JonesApril 11, 2014

Last-minute chance to crowdfund your start-up!

We are excited to announce a last minute opportunity for an exciting new start up to join us at Norway’s first live equity-based crowdfunding event. This follows from the success of Bad Norwegian – one of our original participants – which is now close to reaching its fundraising target.

To take advantage of this fantastic opportunity to pitch to a live crowd of investors at CFX on 29th Apr, just send an e-mail to aleksander@fundedbyme.com by 12:00 p.m. on 15th Apr. In the e-mail, explain in one page who your startup is and what products and/or services you are looking to develop. All participants will also receive free entry and merchandising space at Technoport 2014, and a free crowdfunding campaign on Funded by Me.

Crowdfunding interview
15Megan Jones

Megan JonesMarch 13, 2014

Technoport 2014: Liz Wald explains international crowdfunding

At the end of April innovators, entrepreneurs, business leaders and other technology pioneers will gather in Trondheim for Technoport 2014. In the run up to this exciting event, we will publish a series of interviews with our speakers to learn more about how they are driving innovation. This week we hear from Liz Wald, Head of International at crowdfunding website Indiegogo

How would you explain Indiegogo to someone not familiar with crowdfunding?

Crowdfunding is the process of raising money from a large number of people to fund the projects that matter to them, resulting in significantly more funds and awareness than would ever be possible through a single contribution. As with Indiegogo, this primarily happens online, where money is exchanged, often for an item called a “perk” in a way similar to other online marketplaces like eBay, Airbnb and others. 

There is no approval process for campaigns on Indiegogo (unlike other platforms, like Kickstarter). Why is that?
We welcome a diversity of campaigns spanning creative, cause-related and entrepreneurial projects. This gives campaign owners and contributors the chance to fund what they care about most, without restrictions.  We don’t think we should judge who should raise funds for their idea, but rather the crowd should choose to fund or not based on their interests.

In keeping with the company’s mission to democratize funding, it’s important for Indiegogo to remain an open platform. With no application process or waiting period associated with launching a campaign, individuals can start raising funds immediately, without delays or bottlenecks. Further, we do not curate, which means that we, as a third-party, don’t arbitrarily define the value of any campaign on behalf of the campaign owner.

What, in your view, are the hallmarks of a successful technology crowdfunding campaign? What are some examples of innovative projects?
Beyond raising money, crowdfunding provides several benefits for individuals and organizations. First, a crowdfunding campaign creates a unique opportunity for market validation and increased access to social networks, amplifying overall awareness as like-minded people continue to visit and share your campaign. Second, entrepreneurs can receive early customer feedback, giving them an advantage as they refine their service or product. Third, those who crowdfund gain access to emails and data analytics, providing crucial insights as they move forward once the campaign is over.  This is as true for a creative campaign as a tech-focused one.

One great example is the wireless activity tracker called Misfit Shine.  In addition to raising close to $850,000 from nearly 8,000 backers, they got invaluable feedback on their product design and as a result of the campaign launched both a necklace and a bracelet as well as their original clip-on product. This kind of customer feedback would be nearly impossible if just one or a handful of investors had backed the company.  Even better, they finished their campaign with a great database of users, plenty of funds to create their product, and the proof of concept needed to then take their idea to investors if they chose to do so.

There are campaigners and contributors from nearly 200 countries on Indiegogo. Do you find that certain types of projects are more popular in different countries or regions?
Indiegogo doesn’t focus on any particular category. Below are a few examples of categories of campaigns on the platform:
– Film
– Web/Video
– Music
– Gaming
– Design
– Small Business
– Community
– Health
– Education

Interestingly we’ve seen a pretty solid mix from all corners of the earth.  While hi-tech projects might be obvious in places like the US, Germany and Israel, we see them from less expected locations as well.  We also see amazing innovations from places like Rwanda where a solar phone charger is more a necessity than a novel idea.  The bottom line is that creativity and ingenuity exist everywhere.

Indiegogo currently accepts and disburses funds in USD, CAD, EUR, AUD, and GBP. Do you foresee it accepting Norwegian kroner anytime soon?  
We’re consistently improving our platform to better meet the needs of our international customers and will continue to offer more global payment options as we move forward.  Whether it’s the krone or yen that comes next, the important thing is that we continue to give people options both for raising funds and for making it easy for contributors to participate.

Want to hear more?

Liz will feature at our Venture Angels and Crowd Investors event at Technoport 2014. She will elaborate on the topics explored in this interview as we shed light on the future of funding new ventures. Learn more about Technoport 2014.

Crowdfunding-piggie-bank
15Megan Jones

Megan JonesMarch 11, 2014

Crowdfunding and Tax – what are the rules?

If you’re an innovator wanting to crowdfund a product, or even if you’ve just given money to a crowdfunding campaign, there’s something you might not have considered: tax.

Crowdfunding might seem like a quick and easy way to fund your dream project, but don’t let the hype fool you. Raising enough money takes time and effort, and if the campaign is successful you will probably have to pay tax on the money you receive – and charge VAT on the rewards you give.

Taxable Profit
Money raised through crowdfunding is income. If you are raising that money for profit, then you will have to pay income tax (for individuals, sole traders and partnerships) or corporation tax (for limited companies). If you are not raising it for profit – maybe you want to hold a block party on your street, or raise disaster relief money for earthquake victims – you will have to prove that you are not making a profit in order to avoid tax.

“Whether crowdfunding income is taxable to the recipient depends not on the type of financing, but on the purpose of financing,” explains Ståle Lorås, Partner at Norwegian auditing firm BDO.

“According to the Norwegian Taxation Act, income from business is liable to tax. It must therefore be determined whether the activity financed is part of a business, or whether the recipient is a tax-exempt institution. This involves undertaking a concrete assessment of the conditions in each individual case. If the conditions of a business are met, the income will be liable to tax.

“What type of activity is being financed through crowdfunding will be a decisive factor in determining tax liability. If the recipient is running a taxable economic activity, the funds raised for this purpose will be counted as taxable income.”

Skatteetaten, the Norwegian tax authority, has also written a helpful two-pager (in Norwegian) explaining how crowdfunded profit fits into existing tax rules.

VAT
In reward-based crowdfunding campaigners give donators rewards in exchange for pledged money. This is essentially pre-paying for a product or service. In the eyes of Norwegian tax law this is a sale, just as much as if you were exchanging goods directly – and even if the market value is less than the investment. Therefore, VAT must be collected on these products or services.

A t-shirt, a 3Doodler, or a dinner with the founders would all fall under the standard VAT rate of 25%. If the donation amount were 1000 NOK, for example, 200 NOK would be taken as VAT. A book, on the other hand, is a “zero-rated supply”, so no VAT is collected.

Remember too that VAT is not charged on purchases made from outside of Norway – so if 50% of your funds come from pledgers in the USA, that money is VAT-free. (But it’s still taxed as income.) In Norway, business must also be VAT registered if their annual turnover is above 50,000 NOK, or 140,000 NOK for non-profit organisations.

A note on equity crowdfunding
In the case of equity crowdfunding, investors fund start-ups or small businesses in exchange for partial ownership (shares). There is no tax charged on selling shares, because the money received is not counted income. This doesn’t mean equity crowdfunding is simple – as this list of possible pitfalls shows.

In a nutshell: if you are crowdfunding a commercial product or service in Norway, be prepared to deduct income tax and VAT from your earnings.

This article does not constitute tax advice. If you are crowdfunding a business, we recommend seeking assistance from a tax professional. 

Image credit: The CrowdFunding Consultant