Businessman Eitan Eldar says that Globes website published an article about the phenomenon of crowdfunding – which gains momentum around the world. According to the article, in 2013 a capital raising of $5.1 was made in this method. The forecast for the 2014 double amount.
Countries like the United States, Italy, and Germany, which considered developed countries, understand that crowdfunding becomes a widespread and significant way to raise capital. These countries are building regulatory and legislative measures to adjust to this new phenomenon. Eitan Eldar explains in the article it was explained that in Israel there are attempts to reduce gaps from these countries.
In 2012 an attempt was made to promote reform including authorization to raise capital through crowdfunding. This attempt included a proposal to limit funding amount per company up to 2 million NIS per year, each person can invest up to 5,000 per year. To deal with the phenomenon, a committee was appointed to recommend how to promote these investments
The committee established criteria by which a company can raise capital by crowd financing. The borrowing mix was also emphasized and maximum recruitment. Another recommendation talks about the method of making capital raising. Eitan Eldar explains in the article it was explained that the committee’s recommendations are on their way to a vote in the Knesset in the coming months. Eventually, by the end of the year, it may be possible to see Israeli companies raise capital through crowdfunding.