Crowdfunding is a form of alternative financing which consists in funding a project or a venture by raising monetary contributions from a large number of people via internet-mediated registries. At an EIB Institute seminar, two experts from the European Crowdfunding Network (ECN), Coenraad de Vries, Board Member, and Oliver Gajda, Secretary General, explained how crowdfunding had raised almost EUR 6 billion in Europe in 2015 for ventures at an early stage of development through hundreds of internet-based platforms.
“Internet has changed the market mechanisms to match the supply and demand of goods/services in most industries and finance is no exception”, said Coenraad de Vries.
However, very few of the crowdfunding platforms are really successful. In order to grow, crowdfunding needs a friendlier regulatory framework but also to be more professional with regards to transparency and trust, said the experts. Crowdfunding actors “need to establish business models that deliver growth but leave enough room for constant innovation, both digital and financial”, they concluded.
Click here for the presentation.