manager provide the financing. Research shows that this funding approach is currently available only in the UK, although it is possible that other countries could offer it in future.The investment risk for this approach can be relatively low for the investor. The loan cannot exceed 50 per cent of the pension fund’s net asset value and may also be secured against an asset of similar or higher value111.Case study: Hipcom, UK This case study was chosen to show how a government can facilitate the use of financial resources that otherwise would be relatively static or untapped. Hipcom is a cloud communication company whose main business is buying telecommunication licences from providers and upgrading them for resale. This process is lengthy, and for the business to grow it requires additional sums of capital to buy new licences.Allan Murdoch, Hipcom’s former owner, wanted to invest in the company without diluting his equity or losing control of the company. Murdoch decided to use his own pension fund to capitalize his business expansion. The fund manager provided a loan to Hipcom based on Murdoch’s pension fund amount. In return, Hipcom agreed to pay an interest rate to the fund manager.The level of risk for the lender is relatively low in this case. The loan value must not exceed 50 per cent of the pension fund’s net asset value and other company assets also can be used as collateral. Murdoch raised GBP 684 000 over three stages (GPB 329 000, GBP 155 000 and GBP 200 000). With this approach, he managed to strengthen Hipcom and retain the same equity stake in the business.34 Trends in Telecommunication Reform 2016 Box 1.16: Key lessons: Shyp • Shyp used equity crowdfunding to raise funds needed to launch the company. Securing a ‘featured’ position in the crowdfunding platform enhanced Shyp’s chances of succeeding in its fundraising.• The popularity of equity-based crowd-funding means that financial regulators and governments may need to start applying rules to protect consumers and investors in the event the firm collapses.• The ability of firms to attract funding depends on the growth of digital industries and the e-commerce sector. Governments, therefore, may determine that they have a responsibility to promote the use of e-services to drive take-up and demand.Box 1.17: Key lessons: Hipcom • Hipcom obtained loans by using its owner’s pension fund as collateral, allowing the business to expand and be more competitive.• For pension fund managers, this funding approach can generate additional revenue from using existing funds as collateral for loans.• This type of investment approach depends on government policy allowing pension funds to be used for such a purpose. By facilitating the use of resources that otherwise would be static, the government can create an incentive for people to increase their savings and help businesses to find alternative financing sources.