Iran Launches 1st Foreign Currency-Rial Crowdfunding Platform
‘Novin Kerad’ currency-riyal crowdfunding platform is the first financing platform of the country, which was created by the New Technologies Development Fund as the largest research and technology fund of Iran.
The crowdfunding platform officially started its work on the OTC after obtaining the activity license. Novin Kerad crowdfunding platform was launched in cooperation with the Ministry of Economy, the Central Bank, the Securities and Exchange Organization of Iran, the Iran Exchange, the National Bank, the Foreign Investment Organization, the Export Guarantee Fund, the Central Depository Company and other economic institution.
Mohammad Kolahi, the vice-president of Credit and Commercialization of New Technologies Development Fund, underlined that the development of new technologies has reached the stage of implementation.
“This project requires 200,000 dollars of foreign currency investment to supply the raw materials and equipment needed for the production and export of its knowledge-based products to Turkey and Azerbaijan,” he said.
Crowdfunding involves raising small amounts of money from a large number of individuals to finance a new business venture. It leverages the wide reach of social media and crowdfunding websites to connect investors and entrepreneurs, potentially increasing entrepreneurship by expanding the pool of investors beyond the traditional circle of owners, relatives, and venture capitalists.
The 2008 financial crisis led to the rise of crowdfunding. As banks enforced stricter lending policies post-recession, small businesses struggled to secure credit, prompting many to seek alternative funding methods. In 2023, the global crowdfunding market volume was estimated at $1.17 billion, showing a slight increase from previous years. According to Statista, the transaction value of the global crowdfunding sector is expected to grow by 1.48% annually from 2024 to 2028, reaching a market volume of $1.27 billion by 2028.
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