EU executive to promote potential of crowdfunding

An EU quality label and possible State support for crowdfunding would help the €1bn sector grow to fund economic growth, the bloc’s executive body said.

Crowdfunding allows individuals and small firms to raise money from pools of investors who can put money into peer-to-peer lending schemes or into securities such as unlisted shares. It is often hosted on online platforms such as Crowdcube, Funding Circle, and Kickstarter.

The European Commission, in a draft document to be published next week, said crowdfunding has real potential to finance certain types of projects.