Consob resolution no. 29 November 2017 published in the Official Journal (n. 289 of 12 December 2017). 20204 with the amendments to the "Regulation on the raising of risk capital through online portals" (crowdfunding).
Equity Crowdfunding is a fundraising tool that allows companies, startups or SMEs to finance their growth. Through specifically authorized web platforms (in Italy by Consob), anyone will have the opportunity to invest in companies that, over a defined period of time, offer shares of their capital in exchange for funds.
From 3 January 2018, SMEs will be able to be financed with risk capital through dedicated web platforms, with direct access to equity crowdfunding.
The company presents itself online on platforms authorized by Consob, explains its objectives and sets the collection target which must be reached by the end of the campaign.
According to the Polytechnic University of Milan, there are currently 22 authorized online platforms.
In many countries around the world the phenomenon is not subject to specific laws or regulations, Italy - the first European country to do so - has adopted a regulation approved by Consob. However, the legislation only relates to equity crowdfunding.
This is an evolution of traditional crowdfunding. And in fact, in the best-known donation crowdfunding, the person who donates supports a social cause, as a donation, without getting anything in return. Through equity crowdfunding, instead. investors who contribute to the collection obtain a shareholding in the company, accessing all the resulting patrimonial and administrative rights.
The success of crowdfunding for SMEs will depend on the ability to convince 2.0 investors of the quality of your business plan.
The recipients of Consob's supervision are the online platforms on which companies and investors meet, however the independent administrative Authority cannot offer any guarantee/supervision on the truthfulness of the information published by companies.
Milano, January 18th 2018.
Avv. Giovanni Babino
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