Due to the fast development of the information technology, new attractive possibilities for financing have appeared. Crowdfunding is one of them. It is a unique method of raising money for various projects by means of the Internet technologies. Nowadays, the most frequently discussed topic in the USA is the awaited cancelation of the restrictions on attracting investment for the business startups with the help of the non-qualified and non-licensed investors. Crowdfunding is considered to secure the success to the small business as the investors may also become the stakeholders of the future business.
The history of the regulation of the crowdfunding in the USA started in 2012 when the President B. Obama signed the JOBS Act. The aim of that document was to create additional working places and stimulate the economic growth by means of the improvement of the access to the public capital markets for the new companies. The law motivated the creation of the simplified system of the investment attraction for the business startups without a necessary IPO. It also let to attract up to 1 mio dollars online with the help of maximum 2 mio investors. One investor may provide maximum 10 000 dollars.
As for Europe, only Italy, Spain, Germany and Great Britain have adopted all the necessary legal acts on crowdfunding. Crowdvesting is accessible for any European companies, not depending on the country they operate in, under the condition that their principal place of business is Italy. Crowdfunding platforms have to be registered in CONSOB and meet the list of requirements. The investments placed by means of the Crowdfunding platform have to be conducted via the officially registered broker-dealer, which meets the regulations aimed at the prevention of white-washing and the guidelines of the European Financial Market (MiFID). The investment portfolio of the user has to reflect his/her ability to make risky investments. The exception is a small amount of investment (up to 500 Euro as a one-time investment or 1000 Euro per year). There are no limits for trade investors. Their interests are protected by the right of money withdrawal and joint stock trading in case if the main shareholder decides to sell the business.
According to the MiFID guidelines, minimum 5% of total investments have to be done by the professional investors. It concerns banks, investment companies, finance organizations, brokers-dealers and public organizations. The limit for the investment operations is 5 mio Euro a year. Thus, the crowdvesting in Italy is focused not on the small business but on innovations and technologies. So, such Crowdfunding platforms are providing the services for any European innovation startups, not depending on the nationality of their owners. As a result, the process of financing becomes more transparent and controlled.
