Crowdfunding in troubling times

By Daphne Lam

The advancement of the internet has created new breakthroughs for businesses. One such innovation is crowdfunding, creating accessible opportunities to raise capital. Crowdfunding refers to public fundraising, typically via the Internet, to allow small entrepreneurs, artists, and even individuals to showcase their idea/proposal to gain financial funding. Compared with traditional financing methods, crowdfunding constructs a user-friendly experience for new businesses and potential funders. As long as it is a project that attracts public attention, you can get start-up funds.

The orthodox perception of crowdfunding serving business purposes only is largely misconceived. This misconception has served to mask the full implications of crowdfunding in politics. Crowdfunding is said to democratize the process of political expression and litigation. One such example is the international campaign by Hong Kong protesters, raising HK$10 million for adverts placed in at least 20 mainstream newspapers in 13 countries during the G20 summit in Osaka.

34 billion have already been raised through crowdfunding worldwide. In light of troubling economic times due to COVID and the escalation of protest movements around the world, it is likely we will see the rise in the impact and dependence on crowdfunding. Yet, in Hong Kong, there are no clear guidelines or regulatory regime/legislation targeting crowdfunding specifically. It is high time for Hong Kong to catch up with other jurisdictions.

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