European Commission Considers Ways to Support Crowdfunding (Oct. 3, 2013)
Crowdfunding—a term used for a group of people pooling their money, typically through Websites, to support projects—is being used to help finance everything from films to NFC-enabled jewelry. Crowdfunding has grown quickly in popularity because of Websites, such as Kickstarter and Indiegogo. Now the European Commission (EC) is considering whether a policy framework is needed to encourage the growth of this industry.
“[Crowdfunding] has the potential to bridge the financing gap many startups face and to stimulate entrepreneurship,” said Michel Barnier, EC commissioner for internal market and services. “Considering the development of crowdfunding and the diversity of regulatory, supervisory, fiscal and social frameworks for it across the EU, do we need a single European framework to support both those who develop crowdfunding platforms and to reduce the risks to those who make use of such platforms to finance projects?”
The EC is soliciting input from stakeholders concerning crowdfunding’s potential benefits, risks and suggestions for the design of a policy framework, including any necessary safeguards, to ensure that crowdfunding continues to be a sustainable source of financing for new European projects and not a fleeting trend. The EC is accepting input until Dec. 31, 2013.
