Local capital

Establishing a totally new and innovative crowd-sourcing concept combined with a local financial intermediary.

Project summary: 

The project led to the establishment  of a totally new and innovative crowd-sourcing concept combined with a local financial intermediary: Åre Lokalkapital, which serves as an intermediate between entrepreneurs with new innovative ideas and possible funding actors both locally and globally. Through this innovative approach, more financial resources can on a continuous basis be invested locally in a LEADER region, whereby resources are mobilized regional-internally (from people in the area) and -externally. With stronger equity being inherent to a company, banks are also able to step in to boost the investment.

Project results: 

Since 2014 the local financial intermediary Åre Lokalkapital AB has been active with 36 founding members.

Currently, the tool offers three options for investors: gifts, loans (often with interest in kind), and investments. Interest in kind to be paid to savers/ investors can be, for instance in the case of a spa, free access to spa-facilities.

The initiative has to prove itself worthy to sell support services to local business and/or to municipalities and regions.