Eurocrowd has revealed a partnership with the EU-funded project Early Stage Investing Launchpad (ESIL). Eurocrowd states that the objective is to provide guidance on integrating securities crowdfunding under ECSPR or European Crowdfunding Service Provider regulation.
ECSPR was an initiative to harmonize investment crowdfunding rules across the EU. As it stands today, approved platforms may enable issuers to raise up to €5 million in a security offering pitched to investors across all EU member states. While the rules make sense, the utilization of the new rules has been choppy due to variances at the national level and additional compliance burdens.
ESIL acknowledges that teh EU trails the US when it comes to risk capital, including angel investing and investment crowdfunding. At same time, support for risk capital is growing and a strong European angel investing community will boost innovation in Europe, while boosting the economy.
ESIL launched in 2017 with a first round of funding to develop and connect networks of business angels and crowdfunders seeking to increase cross-border investments between European countries.
Eurocrowd is the leading advocate for online capital formation in the EU and was crucial in getting ECPSR approved. The group states that it will provide the following resources to the initiative.
- Enhanced Co-Investment Opportunities: By integrating crowdfunding mechanisms, business angels can diversify their investment portfolios and collaborate with a broader range of investors, including those from different jurisdictions.
- Streamlined Cross-Border Investments: Understanding ECSPR enables investors to engage more effectively in cross-border deals, expanding their reach and access to innovative startups across Europe.
- Strengthened Ecosystem Synergies: Combining the strengths of business angels and crowdfunding platforms fosters a more robust and resilient early-stage investment ecosystem, driving economic growth and innovation.
The initiative aims to support member platforms that span the spectrum of online capital formation the EU.