Newsletter | Volume 1

Crowdfunding or crowd investing is a growing phenomenon that embraces several different models of financing for business or other ventures. Equity crowdfunding is more complex than other forms of crowdfunding and requires appropriate governance, checks and balances.

Providing funding to rising and innovative firms is relevant given their importance for job creation and economic growth. Additionally, at a time when banking intermediation is under pressure, it is important for European Union policymakers to explore alternative forms of financing.

Crowdfunding has now becoming mainstream, as banks are reluctant in lending money to small business and others are not satisfied with paltry interest rates. Crowdfunding is about cutting out the middle man and allowing small businesses to get the funding they need without banks taking a slice of their margins in fees and interest.

However like all investments look into the various pitfalls and angles: Read The Bruegel report on Improving the role of equity crowdfunding in Europe's capital markets first http://www.bruegel.org/publications/publication-detail/publication/844-improving-the-role-of-equity-crowdfunding-in-europes-capital-markets/?utm_source=Bruegel+publication+alert&utm_campaign=abb6c8051e-140829_Crowdfunding&utm_medium=email&utm_term=0_1f233d