Brussels, 03/06/2013 (Agence Europe) - A new phenomenon - participative funding, or “crowdfunding” - was the subject of a conference organised by the European Commission's DG Internal Market and Services on Monday 3 June. The diversity of rules applicable, and their differences from one country to another, raises the issue of a purely European framework - an issue on which the Commission is not responding at this stage.
“It is too early to know if crowdfunding will revolutionise finance, and even if it will continue in its current forms. But one thing is sure - if this promising phenomenon keeps its promises, Europe cannot be sidelined or fall behind. Right now, we must put an appropriate framework in place to limit the possible risks while encouraging the development of the sector”, said European Commissioner for the Internal Market and Services Michel Barnier (our translation).
Beyond the purely financial aspect, crowdfunding enables project leaders in sectors such as entertainment or new technology to test their idea on a community of potential investors. During this phase, the original idea is strengthened, with fundraising being the last stage of the process. This practice enables people to be linked on the basis of other criteria than the search for profit.
Barnier spoke of the “common issues” that are raised for national regulations, such as access to reliable information, protection in terms of intellectual property for the information that is shared, and guarantees to investors in the case of a platform failing. Italy has legislated in this domain while other countries (Germany, Belgium and France) have simply published guides clarifying how crowdfunding could be regulated. In Europe, crowdfunding platforms - such as Ulule or Sponsume - raised €735 million in 2012 and financed almost 500,000 projects. (MB/transl.fl)