Crowdfunding is highly important for kindling innovation and startups, and it is conducive to the development of the domestic innovation industry and to helping young people realize their entrepreneurial dreams, Premier Mao Chi-kuo stated today.
The premier made these remarks after a Financial Supervisory Commission (FSC) report on its program to allow the private sector to operate equity-related crowdfunding. This initiative is directed toward the government's policy goal of helping young people build careers. Mao instructed the FSC to meticulously plan the program along with all its execution details.
The mechanisms for the fundraising platform have been clearly laid out, and relevant regulations are in place for the GreTai Securities Market (Taiwan's over-the-counter market), fundraising platform, fundraising companies and investors, the premier said. He added that he hopes the platform will garner public credibility and reduce the risk to investors.
Crowdfunding must be well-planned and scrupulously carried out in order to make the online economy thrive, and many innovation economies have burgeoned through the Internet, the premier emphasized. The government must therefore make comprehensive its complementary measures such as third-party payment and close-corporation regulations as well as entrepreneur visa programs. It is hoped that through various efforts Taiwan will transform into an online-business fundraising hub, attract more online companies to list in Taiwan, and thus build a solid base for economic and social transformation as well as new business opportunities.
Premier Mao pointed out that innovation is the industry trend of the future. In light of this new economic model in which innovation industry is incorporated with the online economy, the nation's financial system must also keep pace with the changes and adjust management concepts and thinking, Mao stated.
Online capital flows and transactions chiefly encompass three categories: donations, fundraising and loans, the premier further pointed out. This program is for fundraising, as it provides a low-threshold channel for young people to raise capital or for small businesses requiring small amounts and immediate funding. The premier asked the FSC to study the feasibility of company classification into different levels of paid-in capital so that more small businesses will have the opportunity to participate in the program.
The plan only requires revision of existing laws and regulations, and not the enactment of a new law, the FSC pointed out. Drafts of the needed revisions were completed at the end of last month, so the agency hopes the program will launch by the end of this April. The FSC expects the program will facilitate links with the global market, energize fundraising volume, provide diverse channels for raising capital and help young people to realize their startup dreams.