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European Crowdfunding Network AISBL

ECN

EUROCROWD is an independent, professional business network promoting adequate transparency, regulation, and governance in digital finance while offering a combined voice in policy discussion and public opinion building.

Lobbying Activity

Response to European Innovation Act

3 Oct 2025

Statement on the European Innovation Act: Strengthening Regulated Innovation Finance and Market Uptake As a long-standing supplier and buyer in EU-funded research, innovation, and procurement programmes with direct experience across more than 20 EU grants and tenders (including with the EC, EIB, and EUIPO) we welcome the ambition of the European Innovation Act (EIA) to unlock Europes innovation potential. We would like to underline three critical areas that should be addressed to ensure the success of the EIA: 1. Promotion and Integration of ECSPR The European Crowdfunding Service Providers Regulation (ECSPR) is the a first harmonised EU-wide framework enabling transparent and regulated access to finance for start-ups and SMEs with the help of retail investors, which includes "business angels". However, ECSPR is currently underpromoted and insufficiently embedded in EU innovation policies. Instead, national legislation and support measures too often rely on fragmented or especially on grey capital markets. We believe this can create: - Systemic risk for investors, - Reduced trust in early-stage financing, and - Unequal conditions for innovators across Member States. Recommendation: The EIA should explicitly recognise ECSPR as a cornerstone of Europes innovation finance framework, ensure its promotion at EU and Member State level, and prioritise institutional support programmes for regulated ECSPR-based financing channels over grey or unregulated alternatives. 2. Reducing Market Barriers for Innovation Commercialisation Our practical experience shows persistent barriers to bringing innovation to market: - Fragmented IPR policies between universities, RTOs, industry, and public buyers, - Slow and costly certification and standardisation processes, - Limited and complex access to research and technology infrastructures. Recommendation: The EIA should harmonise IPR approaches across publicly funded research, accelerate certification and standardisation (especially for strategic technologies), and introduce EU-wide simplified access schemes for SMEs and public buyers to research and technology infrastructures. 3. Ensuring a Coherent, Transparent, and Innovation-Friendly Ecosystem To close the gap between research, financing, and market uptake, Europe needs a predictable and transparent innovation environment. This requires: - Cross-border alignment of procurement and financing instruments, - Simplified procedures for SMEs to participate in public and private procurement, - Capacity building for both buyers and suppliers to engage effectively with innovation markets. Recommendation: The EIA should mandate the alignment of national support schemes with EU-level innovation and financing frameworks, to prevent fragmentation and safeguard against reliance on non-regulated alternatives. We believe Europe has the talent, ambition, and research capacity to lead globally in innovation. What is missing is a coherent framework that bridges the gap between research outcomes, regulated financing (e.g. ECSPR), and scalable market uptake. The European Innovation Act has the potential to provide this bridge. It must act decisively to: - Promote regulated financing (ECSPR) and not rely on grey markets, - Remove barriers to innovation commercialisation, and - Create a transparent and harmonised European innovation ecosystem. We strongly encourage the European Commission to embed this into the European Innovation Act to safeguard Europes innovation sovereignty, strengthen investor confidence, and support innovators in delivering sustainable growth across the Union.
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Response to Savings and Investments Union: Directive fostering EU market integration and efficient supervision

5 Jun 2025

The Savings & Investments Union initiative is timely and relevant. However, from the standpoint of ECSPR, its full potential for market integration and direct wealth creation remains underutilised. ECSPR opens up new pathways for retail investors to directly participate in the growth of Europes SMEs and startups, facilitating broad-based wealth creation beyond traditional financial instruments. Unlike indirect investment vehicles, crowdfunding under ECSPR allows individual investors to build equity stakes in real businesses, supporting innovation while growing personal capital. This model complements the objectives of the Union by converting passive savings into active investment in the real economy, which is essential for sustainable growth and financial inclusion. To fully harness this potential, supervisory and policy efforts must: Ensure seamless cross-border licensing and access, Integrate ECSPR more closely with existing capital formation tools, tax incentives, and savings schemes, and Provide retail-friendly frameworks and protections that encourage long-term participation. A more integrated and proportionate supervisory approach, led by ESMA, is key to achieving this. ECSPR, if properly supported, can become a cornerstone for unlocking grassroots capital formation for SME and small-mid caps as well as inclusive wealth-building for retail investors across the EU.
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Response to EU Start-up and Scale-up Strategy

20 Feb 2025

Consultation Response on the EU Startup and Scaleup Strategy Crowdfunding has served as a vital complement to traditional funding sources since the introduction of the European Crowdfunding Service Providers Regulation (ECSPR) and the increase in public offering thresholds in the Prospectus Law. ESMAs 2025 market assessment, which confirmed that over 1 billion was raised under ECSPR in its first year (2023), indicates a successful start. If the EU Startup and Scaleup Strategy aims to foster a more resilient and diverse funding landscape for European entrepreneurs, then crowdfunding is one tool that needs consideration. We believe targeted actions are required in four key areas. 1. Enhance Early-Stage Funding Access While ECSPR provides a structured framework, national divergences in enforcement create barriers to cross-border funding. Additionally, the integration of crowdfunding into EU-backed funding initiatives remains inadequate. Actions Needed: Ensure harmonized enforcement of ECSPR across Member States to eliminate regulatory fragmentation. Introduce tax incentives and co-investment schemes for retail investors but also to encourage institutional investors to engage with crowdfunding. Develop hybrid funding models that integrate crowdfunding with EU-supported financial instruments, such as InvestEU and the EIC Accelerator, to unlock greater investment potential. 2. Improve Regulatory Clarity and Market Efficiency Regulatory uncertainty and high compliance costs continue to impede growth. To ensure crowdfunding thrives as part of the broader EU capital markets strategy, additional clarity and efficiency measures are essential. Actions Needed: Issue comprehensive and uniform ECSPR guidelines for national regulators to ensure coherent implementation across the EU. Reduce compliance burdens for smaller crowdfunding platforms by streamlining administrative procedures and simplifying reporting requirements. Strengthen crowdfundings integration within EU capital markets frameworks, ensuring that it complements other financial instruments and funding sources. 3. Boost Investor Confidence and Market Liquidity Crowdfunding must attract a broader range of investors. Limited secondary market options and a lack of standardized investor protection mechanisms hinder investor confidence. Actions Needed: Support the development of secondary markets to improve investment liquidity through simplified alternatives to multilateral trading platforms. Implement EU-wide investor education programs to improve understanding of crowdfunding risks and opportunities, working in collaboration with platforms and national regulators. Establish a standardized EU dispute resolution framework to protect retail investors and enhance trust in crowdfunding as an investment channel. 4. Align Crowdfunding with Innovation and Sustainability Goals Stronger alignment with EU sustainability and digital transformation goals is necessary to ensure crowdfunding serves as a key funding tool for R&D, sustainability, and impact-driven projects. Actions Needed: Establish direct links between crowdfunding platforms and EU sustainability funding programs to encourage green and impact-driven investments. Offer targeted incentives for startups using crowdfunding to finance research, development, and ESG-aligned projects. Develop simplified ESG reporting standards for crowdfunding campaigns to improve transparency and attract responsible investors. Conclusion We urge the European Commission to take dedicated and decisive action to strengthen crowdfunding as a core pillar of the EU Startup and Scaleup Strategy, the European Retail Investment Strategy and the Savings and Investment Union. Crowdfunding allows retail investors to directly invest in early-stage capital markets and contribute to Europes economic growth and innovation.
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