Opportunities growth crowdfunding Europe

Posted on 09-02-2018 by D. Voesenek

There are currently many factors holding back further growth of crowdfunding in Europe. In Brussels, the opportunities and obstacles in the European crowdfunding market have long been examined. The European Commission will therefore come up with a proposal to create a well-regulated single capital market in March this year.

Currently, a stand-alone crowdfunding market is emerging in each country, instead of there being one overarching crowdfunding market in Europe. For instance, the European Commission noted that the crowdfunding market is very heterogeneous, particularly because countries have their own regulatory frameworks and this makes European consistency difficult. Indeed, investors and entrepreneurs have limited options if they only have access to the local market.

The pursuit of a large single capital market has so far not been a reason for the European Commission to regulate crowdfunding. This March, the European Commission will make a proposal to regulate crowdfunding on a European level after all. In doing so, Brussels hopes to solve several cross-border problems. When there is uniformity at the European level, it can benefit both investors and entrepreneurs.

The European Commission also notes that there are still cultural barriers and language obstacles that make it unattractive for both investors and entrepreneurs to invest or raise money via crowdfunding in other countries. For now, we are waiting for the report which is likely to be released in March.