CROWDFUNDING FOR ENTERPRISE - An Examination of the CrowdFunding Landscape in Europe
"Simply put, crowdfunding is the process of asking the general public for start-up capital for new ventures… entrepreneurs and small business owners can bypass venture capitalists and angel investors entirely and instead pitch ideas straight to everyday internet users, who provide the financial backing’ (and at the same time, early validation of the project concepts and the projected scope of target markets).
In total, 510 live platforms were identified as active in the EU on 31 December 2014 (Platforms database, Crowdsufer Ltd.)… 502 EU platforms and 8 non-EU platforms. Platforms with a primary focus in 22 of the 28 EU Member States were identified and projects were identified in every Member State.
The UK had the greatest number of live platforms, accounting for 28.0% of the EU total number of platforms, and accounts for approximately 80% of the European alternative finance market.
The Crowdfunding market throughout Europe is diverse and complicated. Some European countries have embraced the industry and have introduced guidelines, and in some cases regulation, to address the minefield of risks and concerns that contribute to the uncertainty on behalf of both investors and investees. However, most EU member states have not yet grasped the nettle, and seem intent to wait for the EU itself to take the lead and introduce a legislative framework..."
Note: This report examines the crowdfunding industry globally, paying specific attention to the landscape in Europe, before taking a closer look at the specific Countries participating in the CRUCIAL project. The report also looks at the legislative and regulatory situation in the USA and Europe, with an eye on what the future may hold for Crowdfunding.
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