On 3 October, the European Commission launched a consultation inviting stakeholders to share their views about crowdfunding: its potential benefits, risks, and the design of an optimal policy framework to untap the potential of this new form of financing.
Commissioner for Internal Market and Services Michel Barnier said: ‘Crowdfunding – this alternative form of fundraising that is collective, participatory and interactive – is becoming increasingly important. It has the potential to bridge the financing gap many start-ups face and to stimulate entrepreneurship. Considering the development of crowdfunding and the diversity of regulatory, supervisory, fiscal and social frameworks for it across the EU, do we need a single European framework to support both those who develop crowdfunding platforms and to reduce the risks to those who make use of such platforms to finance projects. That is what I am asking.’
According to the Commission, whereas many crowdfunding campaigns are local in nature, others would benefit from easier access to financing within a single European market. Most of those active in this area may be surprised that crowdfunding has borders, whether EU borders or otherwise. The Commission wants ‘to make sure crowdfunding is not just a momentary trend that fades away, but rather a sustainable source of financing for new European projects’ and states that certain safeguards are needed, in particular to ensure people’s trust.
The ultimate objective of this consultation is to gather data about the needs of market participants and to identify the areas in which there is a potential added value in EU action to encourage the growth of this new industry, either through facilitative, soft-law measures or legislative action.
The consultation covers all forms of crowdfunding, ranging from donations and rewards to financial investments. Everyone is invited to share their opinion and fill in the on-line questionnaire, including citizens who might contribute to crowdfunding campaigns and entrepreneurs who might launch such campaigns. National authorities and crowdfunding platforms are also particularly encouraged to reply. The consultation will run until 31 December 2013.
The consultation is available at:
http://ec.europa.eu/internal_market/consultations/2013/crowdfunding/index_en.htm
