FinTech Germany – Innovation, Banking & Venture Capital by Startuprad.io™

How Crowdfunding for EU Startups will Change this Fall


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The Upcoming Changes to EU Crowdfunding Rules for Startups

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The Expert

We talk to a former guest, Jamal El Mallouki (https://www.linkedin.com/in/jamalelmallouki/), Managing Director (MD) and Co-Founder of Crowdfunding SaaS tech company CrowdDesk. He is also chairman of the board of directors of Germany’s Crowdfunding Association (https://www.bundesverband-crowdfunding.de/about-the-german-crowdfunding-association-bundesverband-crowdfunding-ev/).

He talks with us about the upcoming rules, which will harmonize crowdfunding for startups across the European Union.

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The new Rules / European Crowdfunding Service Provider (ECSP)

Currently, Germany has national rules, getting retail investors without any prospectus to invest in startups. Each retail investor can invest up to 25.000 € in total. This limit does not exist for professional investors.  A startup can now raise up to 6 million Euros with crowdfunding.

These rules are about to change with upcoming EU rules. You can dig deeper in the rules with the links below. The main points are:

  • Crowdfunding campaigns can now target retail investors across the EU. They can now scale up to the whole EU market.
  • (Crowd)Fundraising startups can now target directly online retail investors across the EU
  • Crowdlending in Germany is now possible, directly via the crowdfunding platform, the need for an intermediate bank is gone.
  • This also means that crowdfunding is competing with classical bank credit here.
  • EU Startups, running a crowdfunding campaign can now raise funds in the German market, the largest in the EU with 6.7 trn € (8.14 trn US$) in private household wealth (according to Bundesbank, as the end of 2020).
  • Fundraising without prospectus is possible, up to 5 mn Euros

  • Affiliate Links

    • Is your startup in need of a bank account in Germany? Try our partner affiliate Penta http://bit.ly/3bdHX3d
  • Looking to open a bank account to shift between crypto and fiat? Try our partner Bitwala with this affiliate link here http://bit.ly/2w01Zye

  • Find all the links and further show notes here: https://www.startuprad.io/blog/how-crowdfunding-for-eu-startups-will-change-this-fall/

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    FinTech Germany – Innovation, Banking & Venture Capital by Startuprad.io™By Startuprad.io™ – Europe’s Startup & VC Podcast Network

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