Summary
Lendahand and Crowdcube are among the first cohort of crowdfunding platforms to be authorised under the new EU rules.
The regulation on European crowdfunding service providers (ECSP) allows P2P and crowdfunding platforms to operate in all of the 27 European member states and to carry out cross-border transactions.
A new document from the European Markets and Securities Authority (ESMA) has outlined the four platforms that are authorised under ECSP: Lendahand, Crowdcube, CrowdedHero and Villyz.
Netherlands-based Lendahand is an impact investing platform that supports entrepreneurs and small businesses in emerging markets. Investors can earn up to seven per cent annual returns by lending to projects in countries such as Indonesia and Kenya.
Lendahand also has a joint venture with UK ethical investment firm Ethex, called Energise Africa, which connects investors with green energy opportunities in Africa. The investments – in the form of bonds – are Innovative Finance ISA-eligible.
UK equity crowdfunding firm Crowdcube is also authorised under the ECSP, through its Barcelona subsidiary. Crowdcube received approval from the Spanish regulator Comisión Nacional del Mercados de Valores (CNMV) earlier this year.
The other companies authorised under ECSP are Latvian equity crowdfunding platform CrowdedHero and French ethical peer-to-peer lending platform Villyz.
CrowdedHero connects investors with high-growth European businesses, while Villyz investors can lend to community projects.Link: https://p2pfinancenews.co.uk/2022/10/03/four-platforms-authorised-under-new-eu-crowdfunding-rules/