Capital Markets Union: Commission supports crowdfunding as alternative source of finance for Europe’s start-ups

The European Commission is today publishing its report on the EU crowdfunding sector, part of the Capital Markets Union Action Plan. Supporting innovative ways of connecting savings to growth and diversifying the funding sources for European businesses is crucial to improving growth and job creation in Europe. The report finds that crowdfunding remain6s relatively small but is developing rapidly. If appropriately regulated, it has the potential to be a key source of financing for SMEs over the long term. EU Member States have begun to put in place national frameworks to support the growth of the sector and ensure investors are appropriately protected. Jonathan Hill, EU Commissioner for Financial Stability, Financial Services and Capital Markets Union,said: “As part of our work to improve the funding conveyor belt for businesses, we are keen to support the development of crowdfunding models as a source of financing for entrepreneurs with bright ideas, start-ups and other SMEs. Our focus is on promoting best practice, appropriate investor protection and consistency of national regimes. We will continue to monitor market and regulatory developments closely.” For more information, see our press release here