Crowdfunding – a model for targeted market expansion and investment capital growth
Crowdfunding has become a model for acquiring investment capital for innovative farmers and food producers in Denmark – yet its use is still limited due to lack of knowledge. One model of crowdfunding developed by the co-operative retail company COOP Denmark was presented in May 2018 at the REFRAME conference in Denmark. The background for the contact between Taste of Denmark and COOP was the identification of the need to finance an increase in production among small innovative food SMEs. The increase in market production is based on market expansion, such as entry into supermarket supply chains. Another major benefit of crowdfunding is an increase in consumer loyalty developed among the “investor crowd” by buying-in to a product or to the production values of a producer.
The COOP crowdfunding program has two versions: the 'Reward version' and the 'Loan version'