The leading crowdfunding press release distribution, campaign promotion, and content on demand newswire pioneer iCrowdNewswire has entered into a long term agreement with Brazil’s leader in corporate content on demand services. As part of the agreement iCrowdNewswire will have unlimited access to publish its news feed on 50 web sites controlled by Comtextual in English, Portuguese and Spanish. In addition, Contextual will work with iCrowdNewswire to build and offer a variety of custom content on demand products for the global crowdfunding market in English and other languages.
In the 2013 “Crowdfunding’s Potential for the Developing World” The World Bank stated that crowdfunding is an innovation in entrepreneurial finance that can fuel the “Rise of the Rest”, looking globally the report found crowdfunding platforms in: United States; France; Italy; United Kingdom; Spain; Netherlands; Germany; Brazil; Canada; Australia; South Africa; India; Russian Federation; Belgium; Hong Kong SAR, China; and Estonia. Since the report was issued the list of regions, countries and platforms has spiraled.
“The global aspect of crowdfunding is enormous and this enables us to have a worldwide impact through news, information, education and promotion” said Hector Botero, President and CEO of iCrowdNewswire. “The point is that crowdfunding will become the next global capital market, growing and expanding much faster than the traditional capital markets can simply because it will be much more accessible to emerging markets. New country by country regulatory environments that present a much lower barrier to entry, lower costs and greater accessibility for campaigns at the lower end of the fundraising spectrum equals a larger global opportunity” said Mr. Botero.
Crowdfunding and Brazil – the perfect storm
Catarse, Queremos!, Vakinha, Kickante, Startando, Juntos com Vc (Garupa), Bicharia, Social Beers, IdeaMe, Impulso, Salve Esporte, Sibite, Broota and EuSócio are but a few of the crowdfunding platforms currently operating in Brazil according to the Brazil Crowd Funding Association. Brazil seems so perfect for equity crowdfunding one would think the whole phenomenon was custom created for Brazil.
- Brazil is the fifth largest country in world in population and number of internet users. About 108 million people out of a growing population of 204 million (53%) use internet. Over 71 million Brazilians are active on Facebook alone.
- In a 2014 article the Americas Society / Council of the Americas estimated that there are 6.3 million small-and-medium-sized enterprises (SMEs) in Brazil – SMEs defined by Brazil’s National Development Bank as having annual revenues of less than $39 million per year.
- Brazil is a country overwhelmed by bureaucracy. Archaic corporate regulatory systems, inadequate tax structures, sky high interest rates and very little or no access to capital, yet SMEs contribute an estimated 20% of Brazil’s annual GDP and 50% of all employment.
- Entrepreneurship, technology and women have become driving forces behind the growth of SMEs. A 2014 report estimates that over 500,000 women attempted to buy a franchise in Brazil. The federal government launched a programme to spur the growing role of technology partnering with private accelerators to invest in tech startups and a 2013 survey found that 80% of respondents thought opening a company was a desirable career path.
This all adds up to the perfect storm for crowdfunding to explode in a country where the employment engine is starving for efficiencies and most of all, access to capital. Brazil today is a combination of a very large SME market with a growing entrepreneurial population that is better educated and willing to take risks looking for greater rewards. A global and interconnected population with a rapid adoption of technology.
“The advent of crowdfunding is also an opportunity for new communication technologies and practices” said Edgar Correa, President of Comtextual. In 2014, Forbes Magazine’s website had written about the 7 most popular ways companies use content marketing. In it, the columnist points out that by 2013, use of content marketing had jumped across corporations from 60% a year or so before, to 93% as part of their overall marketing strategy. “Content marketing is perfect for crowdfunding leveraging digital and social media channels to create and nurture crowds” said Mr. Correa.
Launched in late 2014 by a group of corporate newswire executives iCrowdNewswire is an SME and crowdfunding-focused press release distribution, campaign promotion and content marketing newswire. iCrowdNewswire provides corporate communications, investor and public relations and social media services created to help companies participating in crowdfunding communicate effectively and efficiently with investors, media, consumers and social media audiences. iCrowdNewswire provides a global reach with partners in Asia, Europe and Latin America.
Comtextual works with senior professionals who produce daily quality original content for web sites, social networks and e-commerce. Comtextual seeks to provide the complete solution from definition of weekly, monthly and even daily topics for greater impact through publication and reporting including measurable results that can range from single articles to full campaigns.