SEO, Industries Ministry Sign Crowdfunding MoU
EghtesadOnline: The Securities and Exchange Organization and Industries Ministry signed a memorandum of understanding on Wednesday to inject “small funds” into business finance.
The MoU was signed by SEO Chief Mohammad Ali Dehqan-Dehnavi, Industries Minister Alireza Razm-Hosseini and CEOs of financial companies involved in crowdfunding, the public relations website of Iran Fara Bourse reported.
Striving to finance businesses, the Ministry of Industries plans to tap the capital market for much-needed funds. “Innovation in the capital market has facilitated its role in financing the economy” Dehqan-Dehnavi said.
“Crowdfunding is a new phenomenon [in Iran’s capital market] and we want to improve it in cooperation with the Industries Ministry,” he was quoted as saying.
Razm-Hosseini spoke about innovative financial solutions to help fund businesses with high returns, adding that so far 100 companies have been identified.
Among businesses eligible for help through crowdfunding are knowledge-based companies, SMEs, small-scale development projects, startups and small mines.
Crowdfunding is the use of small amounts of capital from a large number of individuals to finance a new business venture. It provides easy accessibility of vast networks of people through social media and websites to bring investors and entrepreneurs together, with the potential of increasing entrepreneurship by expanding the investor pool.