EU Publishes New Crowdfunding Regulations!
Just recently, the European Union published Regulation 2020/1503 (amending Regulation 2017/1129 and Directive 2019/1937) regarding crowdfunding and it goes into effect on November 10, 2020. The New Regulation sets out rules for project owners, investors and crowdfunding portals alike.
Whilst the cap for obtaining capital in a 12-month period has not changed and is still €5 million, the Regulations make a distinction between “sophisticated” and “non-sophisticated” investors which are to be distinguished from professional and retail investors.
There are also limitations being placed on crowdfunding portals (or crowdfunding service providers) and provisions for investment documents associated with crowdfunding campaigns.
If you are seeking to establish a crowdfunding portal or to run your own capital raising campaign you should be aware of the laws that may apply in different jurisdictions.
Whether you are an investor looking to invest in a project, or a project owner seeking to raise a crowdfunding campaign or an entrepreneur wishing to establish their own crowdfunding portal, our securities lawyers at EAG Law have extensive experience in the EU and USA in providing legal advice on how to make your venture a reality.
Contact us for more information at Emily@eaglaw.co