EU rules to boost European crowdfunding platforms agreed – FundedByMe perfectly aligned with the new rules*
FundedByMe and its industry colleagues in the EU rejoice on the recently presented EU agreement reached by the European Parliament and the Council. The agreement means that a single set of rules will apply to crowdfunding services in the EU when raising up to EUR 5 000 000.
“Nothing makes me happier than when I see hard work come into fruition. FundedByMe, our industry colleagues and so many EU government officials have been working tirelessly on convincing our clients, investor members and local governments on the potential of equity crowdfunding. Now that we stand on the brink of new the EU agreements and Brexit on top of it, we look forward to establishing us even further as the strongest EU-wide crowdfunding for equity platform,” says Daniel Daboczy, group CEO FundedByMe
The uniform set of criteria will apply to all European Crowdfunding Service Providers (ECSP) up to offers of EUR 5 000 000 calculated over a period of 12 months per project owner, the agreed text says. After Brexit, FundedByMe will be the largest and fastest-growing equity crowdfunding platform in the EU. The new EU agreement is very positive news as the market needs clarity and an EU wide agreement. FundedByMe, being a global platform already and having offices in 4 EU countries (and 2 non-EU) deems that the new agreement will impact its business positively 2020 and onwards and is especially happy to see that collaborations with local legislative branches have been a solid strategy.
FundedByMe has since its inception in 2010, and especially since 2012 when it started offering equity crowdfunding, fought hard against the misconception that crowdfunding would be frowned upon by the government’s legislative branches. Numerous investors and eligible companies might have hesitated using equity crowdfunding portals worldwide due to the belief that crowdfunding could be in breach with local laws. Despite the legal counselors offering support for crowdfunding, there are still people struggling to come to terms with the changes that Crowdfunding brings. Although FundedByMe has been able to demonstrate several legal opinions on equity crowdfunding, many have found it difficult to accept the changes that crowdfunding has brought.
The JOBS Act in the US, Grassroots Investigation in Sweden and other similar local decisions show that the local governments and financial institutions have acknowledged the disruptive force that equity crowdfunding can have in creating job opportunities, funding companies and offering investment opportunities for early-stage companies.
Equity Crowdfunding is a relatively new industry, despite it already having raised billions of dollars worldwide and disrupted the funding methods dramatically. But as the rules and regulations with its roots in the 1930s post-depression are starting to change, due to how the world is evolving, we can now see how the rules regarding equity crowdfunding for the EU are improving. For FundedByMe this is especially welcomed news, being one of the strongest players and having over 250,000 investor members worldwide. FundedByMe is a listed company since 2019 and expects strong growth onwards as markets mature and legislations clarify. Outside the EU, FundedByMe holds licenses to operate in Dubai/UAE and Malaysia.
*English translation for convenience only
For further information, please contact:
FundedByMe Crowdfunding Sweden AB
Daniel Daboczy, CEO
Mobile: +46 (0) 73 6269985
FundedByMe is a tech company, focusing on the financial markets. Today the company offers a digital and global platform for financial support for startups and growth companies around the globe. Customers sign up online where they are able to book their investment interest in different companies. The company consists of FundedByMe.com, Feminvest and Laika Consulting, as well as 6 joint ventures in Finland, Malaysia, Singapore, Poland, The Netherlands, and Dubai/UAE. Together the group reaches over 269,000 registered investment members globally. For more information visit www.fundedbyme.com