Crowdcube first platform approved under ECSPR
Equity crowdfunding platform Crowdcube has become the first platform to be approved under the new European Crowdfunding Service Provider Rules (ECSPR). It received the approval from Spanish regulator Comisión Nacional del Mercados de Valores (CNMV). The platform can now accept European investors.
British equity crowdfunding platform Crowdcube is on its way to expand in Europe. In November last year, it raised 11.8 million euros in a funding round led by Circle. The company then announced that it wanted to use to capital injection to expand further into Europe.
‘Crowdfunding platforms need to be regulated by an EU member state.’
Around that same time, the new ECSPR came into effect. Crowdfunding platforms need to be regulated by an EU member state. With a license, they can obtain investors across all EU members. These new rules are meant to streamline the capital raising process all over Europe.
Other crowdfunding platforms have already announced their interest in expanding internationally. The first platform that’s able to do so is Crowdcube, with its new European license.
‘We have always had European investor interest on our platform.’
“We’re proud to be part of the UK equity crowdfunding market, a global leader in connecting retail investors with the most exciting high-growth companies. But while Crowdcube was founded in Britain, we have always had European investor interest on our platform. That’s why we are delighted to announce that Crowdcube has become the first equity crowdfunding platform to be granted a European Crowdfunding Service Provider authorization”, said the platform in a blogpost.
The platform has announced that it will build a pan-European marketplace with the new license. According to the platform, investors gain more investment opportunities, while European businesses gain greater access to equity crowdfunding of up to 13 million euros. They can raise 8 million euros from UK investors, while raising an additional 5 million euros from investors across the rest of Europe, which is the European funding cap.