CYPRUS: NEW CROWDFUNDING HUB IN 2020.
With crowdfunding having helped companies of all sizes around the world raise over € 50 billion, to say it has been a successful worldwide phenomenon is an understatement. It was not too long ago, in March 2018, that the EU released draft legislation addressing crowdfunding in Europe. Now, the new rules have been introduced on December 18, 2019, and are expected to become law in 2020. This means that SME’s and entrepreneurs alike can look forward to being able to raise capital by appealing to the crowd in the European Union.
The new rules will allow for crowdfunding campaigns of up to € 5 million in any 12 month period. Having already issued a consultation paper on crowdfunding in November 2019, it appears that Cyprus is set to implement such legislation- hopefully in the coming year.
With the rise of startups in Cyprus and many companies successfully raising capital through ICOs and STOs, it’s only natural to expect that crowdfunding will also be able to help businesses of all types and sizes raise much needed capital not only for starting-up but also for business expansion. According to the legislation, companies will be able to raise venture capital by issuing transferable securities.
One of the biggest benefits of crowdfunding in Cyprus is that it is easier, faster and cheaper than:
(a) listing on a public exchange, or
(b) creating a fund to raise capital for your project (which may require upfront capital of more than €150,000 just to set-up the fund and cover initial capitalization, legal and compliance fees).
To learn more on how you can crowdfund for your business, please contact us at firstname.lastname@example.org