Encourage creativity, assist creative industries
In recent years, “crowdfunding websites” in the U.S. have provided a way for innovators to publish their ideas and seek support from the public to transform their dreams into reality. The Taipei Exchange (TPEx) has been a cradle for innovative industries, actively assisting emerging high-tech industries and small and medium-sized enterprises (SMEs) to realize their growth potential. TPEx set up the “Gofunding Zone” in accordance with government policy to help individuals and micro enterprises with business startup innovation thinking develop their ideas and thrive. It is hoped that the exposure of business startup innovation ideas will be increased through simultaneous information disclosure on TPEx’s “Gofunding Zone” and crowdfunding platforms. Through appropriate monitoring of platform operators, we can help boost their credibility and gain investor trust, turning an innovator’s dreams into reality. This is all with the ultimate aim of assisting business startup innovation industry development and implementing government policy.
How Crowdfunding Works
The “Gofunding Zone” matches individuals “possessing business startup innovation and ideas, but lacking capital” with individuals “possessing money and willing to support business startup innovation”. Through marketing of business startup innovation ideas and dreams on public websites, innovators may receive support from the public. This allows innovators to gather sufficient funds within a short time, turning their business startup innovation dreams into reality. At the same time, innovators make a commitment to provide sponsors with innovative products in return. Crowdfunding websites have been very well-received in the business startup innovation outlets of many businesses and industries, including music, film and product design, etc.
The Gofunding Zone Framework
TPEx will collaborate with platform operators, ensuring that funding project information is simultaneously released on websites and the TPEx “Gofunding Zone”. This will increase funding project exposure.
The role of TPEx will also include moderate managing of crowdfunding platform operators, monitoring of funding proposal review, as well as controlling transaction cash flow and funding project execution. TPEx will encourage operators to use authorized banks to act as intermediaries (i.e. using a third-party payment system) in the collection and payment of sponsorship funds. This will remove doubts over the transfer of funds from sponsors to business startup innovation innovators, enhancing overall credibility of the system for users and allowing members of the public to provide sponsorship without worry.
The “Gofunding Zone” simply provides a platform for ideas. It does not get involved in any transactions between business startup innovation innovators, sponsors, or platform operators. Sponsors wanting to be involved in a proposal must go through proper sponsorship channels on crowdfunding websites. In addition, in the spirit of providing a public service, TPEx does not require any set fee charges from business startup innovation innovators, sponsors or platform operators.
TPEx does not bear any responsibility for the implementation of business startup innovation projects, nor any legal or tax liability of projects. TPEx will not interfere in the business operations or transactions of platform operators or any disputes therein. However, TPEx will provide a moderate auditing and oversight role on platform operators' review of projects, handling of cash flow, and monitoring of project implementation.
Furthermore, TPEx will set eligibility criteria for crowdfunding platform operators who would like to join the “Gofunding Zone”, including that fees charged to business startup innovation innovators for success funding cannot exceed 10% and that fund dispersal controls and business startup innovation project review systems shall be established, as well as a credible website environment.
Implement Government Policy, Execute TPEx philosophy
Every year, Taiwan receives excellent results in international invention contests. From this, we can see that our people are filled with an innovative spirit. Assisting the innovators to reach their full potential and turning dreams into reality is beneficial to society as a whole and to our country. This may even transform creativity into business opportunities. With this in mind, to support government policy and TPEx philosophy, TPEx has set up the “Gofunding Zone”. This will provide society as a whole with the opportunity to happily sponsor and encourage business startup innovation innovators to pursue their dreams courageously, resulting in the promotion of creative industry development, while implementing government policies.
TPEx warmly welcomes all domestic crowdfunding website operators to join the “Gofunding Zone”, allowing more business startup innovation proposals to be released on this platform. At the same time, TPEx will provide business startup innovation proposal information that has been released to the 800 plus emerging stock companies and TPEx -listed companies, SME Administration, Ministry of Economic Affairs, Taiwan Securities Association, Taiwan Venture Capital Association, Ministry of Culture, Council of Agriculture, Executive Yuan and related organizations. TPEx aims to increase crowdfunding website popularity and business startup innovation proposal exposure opportunities, while improving proposal fundraising success rates. Eventually, this will encourage business startup innovation innovators to pursue their dreams and make the best use of their creativity, resulting in the promotion of creative industry development, while implementing government policies.