European Crowdfunding Network Empowering Startups and Small Businesses

The European Crowdfunding Network is a game-changer for startups and small businesses in Europe. It provides a platform for these businesses to raise funds and gain exposure.

The network has a strong presence in 35 European countries, making it a valuable resource for entrepreneurs across the continent. Its members include crowdfunding platforms, investors, and other industry professionals.

The European Crowdfunding Network offers a range of services to support startups and small businesses, including training and education programs. These programs help businesses develop the skills they need to succeed in the crowdfunding industry.

By joining the European Crowdfunding Network, startups and small businesses can tap into a vast network of resources and expertise. This can help them overcome common challenges and achieve their goals.

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EUROCROWD has been a key player in the European crowdfunding sector since 2013, advocating for the industry's growth and development.

EUROCROWD published a white paper outlining the opportunities and hurdles of pan-European crowdfunding markets more than a decade ago.

The organization has led recurring and ongoing exchanges with European institutions through research and direct interactions since then.

EUROCROWD's dedicated research for DG FISMA in 2017 led to the creation of the proposal for ECSPR in 2018.

The ECSPR has become an integral part of EU law, providing a valuable opportunity to access finance for Europe's 20 million small businesses.

EUROCROWD's work has created a path to the ECSPR, which was established in 2021.

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The European Crowdfunding Network (ECN) has a comprehensive list of crowdfunding platforms, with over 150 members from 30 countries. These platforms are categorized into four main types: reward-based, lending-based, equity-based, and hybrid.

ECN's platform directory provides a one-stop-shop for crowdfunding projects, with a wide range of categories and filters to help users find the right platform for their needs. This makes it easier for both project creators and investors to connect and succeed.

By using ECN's platform directory, users can access a vast network of crowdfunding opportunities, with a combined total of over €2 billion in funding raised.

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Licensed Crowdfunding Platforms are a game-changer for startups and small businesses looking to raise capital.

Under the ECSP regulation, a crowdfunding platform can solicit investors across all EU members, streamlining the capital raising process in Europe.

Community Finance is one such licensed platform that provides alternative financing services across the EU.

This means that businesses can now reach a wider audience and tap into a broader pool of potential investors, making it easier to secure the funds they need to grow.

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Crowdcube is a platform that has long operated a subsidiary in Spain, receiving approval from the Spanish regulator Comisión Nacional del Mercados de Valores (CNMV).

In April 2022, Crowdcube became the first investment crowdfunding platform to be approved under the new European Crowdfunding Service Provider (ECSP) Regulation.

Crowdcube aimed to become one of the first platforms to operate under new European Union regulations since November 2021.

This approval allows an issuer to solicit investors across all EU members, streamlining the capital raising process in Europe.

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Crowdcube has a strong presence in the UK equity crowdfunding market, connecting retail investors with high-growth companies.

As of April 2022, Crowdcube is proud to be part of the UK equity crowdfunding market, a global leader in connecting retail investors with exciting high-growth companies.

Crowdcube's partnership with SeedInvest in North America gives it a strong foothold in the global market.

The platform has a unique position to benefit from its UK base, access to the EU Market, and its partnership with SeedInvest in North America.

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The ECSP Regulation has brought uniform rules across the EU for investment-based and lending-based crowdfunding services related to business financing.

Crowdfunding platforms can now apply for an EU passport based on a single set of rules, making it easier for them to offer services across the EU with a single authorisation.

The Regulation was adopted on 10 November 2020 and the rules entered into application on 10 November 2021, applying directly across the EU.

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New platforms need to apply for this European license to offer their services in countries in Europe, while existing platforms have a transition period of 24 months to apply for the new license until 10 November 2023.

The new rules will increase the availability of this innovative form of finance, helping companies seeking alternatives to bank financing, and provide investors with an aligned and enhanced investor protection framework.

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The ECSP Regulation is a game-changer for crowdfunding platforms in the EU. It lays down uniform rules across the EU for the provision of investment-based and lending-based crowdfunding services related to business financing.

These new rules allow platforms to apply for an EU passport based on a single set of rules, making it easier for them to offer their services across the EU with a single authorization. This is a huge step forward, as it reduces compliance and operational costs, and enables platforms to efficiently scale their services.

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The ECSP Regulation was adopted on 10 November 2020, and the rules entered into application on 10 November 2021, applying directly across the EU. New platforms need to apply for this European license to offer their services in countries in Europe.

Existing crowdfunding platforms will be able to use a transition period of 24 months to apply for the new license until 10 November 2023. This gives them time to adapt to the new rules and ensure they meet the required standards.

The new rules are expected to increase the availability of this innovative form of finance, which will help companies seeking alternatives to bank financing. Investors on crowdfunding platforms will benefit from an aligned and enhanced investor protection framework, based on:

Lobbying plays a crucial role in shaping regulations and compliance in the European crowdfunding industry. The European Crowdfunding Network (ECN) has been actively involved in lobbying efforts to influence the proposed central crowdfunding legislation.

In October 2018, the ECN lobbied for changes to the proposed legislation at the 7th ECN Crowdfunding Convention in Brussels. This event was attended by members of the European Parliament and the European Commission.

The ECN's lobbying efforts were successful in increasing the threshold for offerings from €1m to €8m. This change was influenced by a panel discussion facilitated by ECN members, including rebuildingsociety.com, Invesdor, aescuvest, and Privanet.

The ECN has continued its discourse with European institutions and the crowdfunding sector to streamline information exchange regarding national implementation of the new law. This ongoing effort aims to ensure a harmonized approach to crowdfunding regulations across Europe.

The ECN's lobbying efforts demonstrate the importance of industry engagement in shaping regulations and compliance. By working together, industry stakeholders can influence policy decisions and create a more favorable environment for crowdfunding to thrive.

The ECN's lobbying efforts have been focused on achieving the following goals:

The European Crowdfunding Network (ECN) is a great example of how a community can come together to support one another. The ECN has a strong focus on community and support, with a network of over 50 crowdfunding platforms and organizations across Europe.

As a member of the ECN, you'll have access to a wealth of resources and expertise, including training and capacity building programs. These programs are designed to help crowdfunding platforms improve their services and grow their businesses.

The ECN also hosts regular events and conferences, bringing together industry experts and enthusiasts to share knowledge and best practices. In 2019, the ECN organized a major conference in Brussels, which attracted over 200 attendees from across Europe.

One of the key benefits of being part of the ECN community is the opportunity to connect with other crowdfunding professionals and learn from their experiences. Whether you're just starting out or are an established platform, you'll find valuable insights and advice from your peers.

The ECN has a strong commitment to transparency and accountability, with a clear code of conduct that all members must adhere to. This ensures that the community remains a safe and trustworthy space for everyone involved.

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The European Crowdfunding Network (ECN) offers a unique value proposition that sets it apart from other industry organizations. The ECN is engaging in a discourse with policy makers and industry regarding professional standards, best practice and data provision.

This means that the ECN is working to establish and promote high standards within the crowdfunding industry. By doing so, it aims to increase professionalism and credibility among its members and the industry as a whole.

The ECN also provides a platform for networking opportunities, allowing members from across Europe to meet together, exchange information and ideas, and discuss the latest industry trends and issues. This can be a valuable resource for those looking to connect with others in the industry and stay up-to-date on the latest developments.

Here are some of the key benefits of ECN membership:

Villyz is an online investment platform founded in March 2020 in Paris, France.

It's licensed by ECSP and approved to offer securities across the European Union under the ECSP Regulation.

Villyz provides lending-based crowdfunding services, allowing investors to crowdfund a loan and grant it to a community to carry out a project of general interest.

This innovative method of financing is called citizen financing, which is simple and transparent like bank financing.

Citizens can invest their savings in their local community's projects through Villyz.

The platform takes care of identifying lenders, providing access to projects, and making payments during a citizen financing campaign.

Reimbursement of citizens by the community is also fully automated by Villyz.

Villyz is a niche platform that specializes in funding community projects via crowdfunding loans.

It's also one of a few platforms approved to label projects as green crowdfunding projects by the Ministry for Ecological Transition.

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The ECN's value proposition is centered around three key areas: raising professional standards, providing networking opportunities, and conducting industry research and promotion.

Raising professional standards is a top priority for the ECN, engaging in a discourse with policy makers and industry regarding best practice and data provision. This helps ensure that the industry is operating at its best.

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Networking opportunities are also a key benefit, allowing members from across Europe to meet together and exchange information and ideas. This can lead to valuable connections and collaborations.

The ECN is also dedicated to conducting industry research and promotion, providing a wide variety of research on crowdfunding and its impact on economy and society.

The European Crowdfunding Network (ECN) has a robust governance and leadership structure in place. The non-Executive Board is elected by the Assembly of Members every two years.

The Board assumes the task of guiding the Secretariat and ensuring the ECN's strategy is executed, as well as looking into joint problems and preparing reports. It also takes part in conferences and elects a Chair to represent the interests of its members before any public or private authority.

The Chair of the Board is Christin Friedrich from Innovestment in Germany. She is joined by four Vice Chairs, including Nuno Brito Jorge from GoParity in Portugal and Jeff Lynn from Seedrs in the United Kingdom.

Here's a list of the non-Executive Board members for the 2021-2023 term:

The Board also has an Executive Director, Oliver Gajda, and a Deputy Director, Francesca Passeri. They work together to ensure the ECN's strategy is executed and its members' interests are represented.