Success Factors in Reward based and Equity based Crowdfunding in Finland

9.2.11. Legal Regulation 
Since legal regulation regarding crowdfunding is evolving globally, it might be diffi-
cult to keep up with the latest laws. Currently, there is no uniform policy for crowd-
funding in Europe (
De Buysere et al., 2012) or in Finland (Gajda, 2014). This could 
make crowdfunding laws dubious and confusing, resulting hesitation on the entrepre-
neur’s or the funder’s behalf. 
Interestingly legislation did not seem to be an issue or concern for the interviewees. 
Pere from Pyynikin Käsityöläispanimo referred to the restriction for businesses to 
raise funds without compensation in Finland (Lasrado and Lugmayr, 2013) by stating 
“we have always given something as compensation, so legislation has not been an 
issue”. He continued by saying “it is no different in others countries, although busi-
nesses can raise funds without compensation in some places”. This implies Pyynikin 

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Master’s Thesis 
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Käsityöläispanimo is informed about the legal environment in Finland and does not 
view it to be disadvantageous to his crowdfunding activities. As suggested by Lasrado 
and Lugmayr (2013) being informed about Finland’s legislation regarding crowdfund-
ing eased the process for Pyynikin Käsityöläispanimo. 
Juuri on the other hand would have appreciated additional assistance with some of the 
legal aspects of crowdfunding. Bjors form Juuri stated, “there were some legal mat-
ters, that I would have gladly paid someone 100 euros to do for me”. However, Bjors 
noted that these inconveniences were small and when asked if legislation affected the 
project he responded by saying “this was an easy project”. 
The only interviewee who felt legal regulation affected their crowfunding project was 
Suoheimo from Ambronite. For Ambronite the problem with legal regulation was its 
ambiguity. Suoheimo stated “In Finland, no official decision has been made concern-
ing taxation and the tax administration has no guidelines to provide”. For Ambronite 
having no clear rules about taxation meant that the team was uncertain as to how to 
proceed with the funds. Suoheimo continued by saying he “categorizes ambiguity as a 
risk”, thus affecting business. According to Suoheimo new, innovative ways to fi-
nance and do business are “outlaws” and will be until clear regulations are indicated. 
All in all, most of the entrepreneurs were unconcerned with legal regulation and did 
not feel it affected their crowdfunding project. Ambronite, as an outlier, feared the 
potential negative effects of ambiguous legislation. It might have been that since most 
of the interviewees were very geographically tied to a place, initiating their crowd-
funding project in a country with different legislation was not an acceptable possibil-
ity for them. Thus, they might not have felt the need to engross themselves in differ-
ing legal regulations, instead choosing to follow the policies indicated to them in Fin-
land.