By Daniel Lanyon on Wednesday 10 November 2021
From today, new EU financial regulation will finally come into effect crowdfunding regulations across Europe.
UK crowdfunding platform Crowdcube is planning to launch across Europe following new rules in the European Union simplifying the rules governing crowd fundraising finally launching.
The European Union announced its Fintech Action Plan just under four years ago and on 10 November 2020, the Regulation on European Crowdfunding Service Providers (ECSP) for business entered into force. After a transition period of 12 months, the rules will enter into application on 10 November 2021, applying directly across the EU .
The new uniform regulatory framework, Crowdcube says, will unlock “huge potential for capital” raising led and shaped by retail investors to expand across all European markets.
Companies in the UK and EU will now be able to raise up to €13m from retail investors in a single offering of either primary or secondary shares (€8m from UK investors and €5m from European investors).
"This change in regulation in the EU has been a long time coming. We are delighted that this form of fundraising is now more readily available to founders and companies across Europe. We have a decade of knowledge and expertise in the UK, which we can now leverage fully in a much larger market, and are well-positioned to capitalise on the new regulations and help businesses engage with their customers and communities in Europe for the very first time,” said CEO and co-founder of Crowdcube Darren Westlake.
Crowdcube was founded in 2011 and has now funded over 1,130 deals totalling €1.4bn. The company was set to merge with its rival Seedrs earlier this year but the deal was called off after the CMA, the UK's regulator on anti-trust issues failed to give its approval.
You can find full details of the new EU rules here.