Crowdcube to operate in the EU under new crowdfunding rules

Crowdcube will continue to allow European peer-to-peer lending platforms to raise equity on the online investment marketplace under new EU crowdfunding regulations.

From today, new EU regulation will come into effect, harmonising for the first time the existing patchwork of crowdfunding regulations across Europe, setting a new legal framework for the day-to-day operations of crowdfunding platforms, and strengthening protections for investors.

The regulation also increases the limit of how much privately-owned EU businesses can raise, from €1m (£855,790) to €5m.

Crowdcube, which has had an office in Spain for the past few years, will continue to offer fundraising campaign opportunities to EU P2P platforms after it has been licensed under the new regulation.

The platform said that companies in the UK and EU will now be able to raise up to €13m from retail investors in a single offering of either primary or secondary shares, €8m from UK investors and €5m from European investors.

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“This change in regulation in the EU has been a long time coming,” said Darren Westlake, co-founder and chief executive of Crowdcube.

“We are delighted that this form of fundraising is now more readily available to founders and companies across Europe.

“We have a decade of knowledge and expertise in the UK, which we can now leverage fully in a much larger market, and are well-positioned to capitalise on the new regulations and help businesses engage with their customers and communities in Europe for the very first time.”

Crowdcube has raised €1.2bn for 1,130 UK and European businesses from a community of more than 1.2 million retail investors.

Several P2P platforms have raised funds via Crowdcube, including Plend and JustUs most recently.