Crowdfunding is an emerging alternative form of financing that connects those who can give, lend or invest money directly with those who need financing for a specific project. It usually refers to public online calls to contribute finance to specific projects.
The EU market for crowdfunding is underdeveloped as compared to other major world economies. One of the biggest hurdles faced by crowdfunding platforms seeking to offer their services across borders is the lack of common rules across the EU. This raises compliance and operational costs and prevents crowdfunding platforms from expanding.
In March 2018, as part of its Fintech action plan, the European Commission presented a proposal for a regulation on crowdfunding service providers. Once adopted at EU level, the new regulation will allow platforms to apply for an EU passport based on a single set of rules. This will make it easier for them to offer their services across the EU.
The new rules will improve access to this innovative form of finance for small investors and businesses in need of funding, particularly start-ups. Investors on crowdfunding platforms will benefit from a better protection regime and a higher level of guarantees, based on
clear rules on information disclosures for project owners and crowdfunding platforms
rules on governance and risk management
a coherent approach to supervision
The Commission proposal only applies to those crowdfunding services entailing a financial return for investors, such as investment and lending based crowdfunding.
So, startup financing is no longer a privilege of venture capital funds or super wealthy individuals, but became available to almost everyone.
Funding Circle is one of the best-capitalised lending platforms in the world and listed on the London Stock Exchange (Ticker: FCH) in October 2018. They have raised approximately £550 million since 2010 from some of the largest and most sophisticated investors around.
Their backers collectively manage over $5 trillion and are the leading firms behind Facebook, Twitter, Skype and Betfair.
Spreds is an investment platform offering everyone, regardless of the size of their assets, an easy way to invest in businesses that improve their surrounding world. Spreds strives to help them mitigate their investment risks through transparency, education and diversification.
Their 40,803 members have invested €59,210,998, realising the dreams of 136 companies
Companisto is among the leading equity-based crowdfunding platforms in Europe with several renowned business angels, corporate finance specialists, and venture capital companies in its network.
The platform has successfully funded 30 startups and invested nearly €6 million so far.
Invesdor is an award-winning pioneer and Nordic market leader in digital fundraising and investing. Founded in 2012, we are a fintech company operating a fully licensed online investment platform that connects ambitious European growth companies with investors worldwide. In 2018, Invesdor won the title of Best Nordic Fintech Startup. Our clients include private and publicly traded companies from Finland, Sweden, Denmark, Norway and the UK as well as investors from more than 80 countries. We are headquartered in Helsinki, Finland and have a branch office in Stockholm, Sweden.
FundedByMe was founded in Stockholm, Sweden, in March 2011 and is one of the first crowdfunding platforms in the world to offer both reward-based and equity crowdfunding. The platform has a major focus on European entrepreneurs to facilitate cross-border investments that benefit both entrepreneurs and investors to assist with job creation and economic growth.
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