Crowdfunding Service Providers – Cyprus Update

Crowdfunding Service Providers– Cyprus update

As access to funding via traditional routes becomes increasingly challenging and expensive, crowdfunding is gaining notable popularity. Crowdfunding via digital platforms opens investment opportunities to investors at large and is a great funding tool for start-ups and small/medium sized businesses which are unable to secure accredited investors or financing via conventional routes. Crowdfunding platforms provide significant added benefits such as campaign marketing exposure, validation of a business idea/proof of concept, ability to test the marketability and obtain feedback and access to insights and information.

Although crowdfunding in the EU has been underdeveloped, the increasing popularity and need for safeguards steered the EU into establishing common rules and licensing requirements within the EU, with passporting benefits. Regulation 2020/1503 on European crowdfunding service providers for business has been