Crowdfunding - Introduction To Regulatory Framework

Crowdfunding has become an increasingly popular method of financing in recent years. While this method of raising funds from the wider public creates a lot of new investment opportunities, there are also risks associated with it. EU financial market regulators are responding to the growth of crowdfunding and related risks in order to protect investors.

Crowdfunding: definition & models

The term crowdfunding first appeared in the 1990s to describe an internet platform designed to collect funds to finance various artistic or social projects. Nowadays, there are thousands of crowdfunding platforms all around the world. The most successful platforms include GoFundMe, Kickstarter, Indiegogo, RocketHub and FundRazr.