European Crowdfunding Service Providers regulation (ECSPR) became fully effective in November 2021, so it has been a few years now. A recent report distributed by the European Securities and Markets Authority (ESMA) recently published a report on securities crowdfunding. In total, at the time of the report, € 4.25 billion had been raised under the rules.
ESMA keeps a roster of approved and inactive platforms. According to a recent review of the list, there are now 237 active online capital formation platforms operating across Europe. Debt and loan-based products dominate the marketplace.
France is the most robust market with over 48 platforms approved by the French Autorité des Marchés Financiers.
After France, you have:
- Italy – 32
- Spain – 18
- Lithuania – 10
- Belgium – 8
- Germany – 5
The breakdown by platform type is as follows:
- France (48 platforms): Balanced; ~40% debt/loan-based (real estate focus), ~30% hybrid, ~20% equity.
- Italy (32): ~50% equity (startup-heavy), ~30% debt (real estate lending).
- Spain (18): ~40% hybrid, ~30% debt, ~20% equity.
- Lithuania (10): ~60% loan-based (P2P/business).
- Belgium (8): ~70% loan-based (crowdlending).
- Others: Smaller countries lean toward loan-based (e.g., Latvia, Netherlands).
Real estate platforms are among the most common sectors in which online investment services are offered under ECSPR.
While ECSPR has been embraced by the industry, there has been some criticism, including the variations between member states in approving a provider. Under the rules, while an approved provider may operate across the EU, each relevant authority in a member state may regulate a platform differently.
The €5 million funding cap has also captured some criticism as some would like to see that amount move higher to accommodate larger funding rounds and more mature companies.
While ECSPR aims to foster a single market for early-stage and alternative investments, more could be accomplished if the rules were adjusted. Tax policy can also help incentivize investor activity in the marketplace.
Tokenization or digital securities could also help boost the ESCPR marketplace, but so far little progress has been made
The spreadsheet is available here.
