EDFA: 10 proposals to create a €1 trillion crowdfunding industry by 2030.
Europe’s growth potential risks being left untapped
The European Digital Finance Association (EDFA) released its newest position paper ‘Improving the European Crowdfunding Service Provider Regime (ECSP-R)’. In it, EDFA warns that Europe risks falling behind in the race for innovation and growth unless European Crowdfunding Service Providers (ECSP’s) are firmly embedded in EU financial policy.
In order to ensure that companies in the European Union have access to digital forms of capital, the members of the European crowdfunding ecosystem and members of EDFA have developed ten proposals to create a 1-Trillion-Crowdfunding-Industry by 2030. 25 European Fintech- and Crowdfunding Associations have joined this proposal, with concrete steps for 19 jurisdictions, covering 95% of the European Crowdfunding Market.
“It is important that the crowdfunding industry speaks with one voice in order to achieve this ambitious goal, but also to ensure pragmatic changes on the national level,” said Karsten Wenzlaff, EDFA board member & Secretary General Digital Invest Germany – German Crowdfunding Association.
The ten proposals cover regulatory proposals such as the streamlining of ECSP-R, MiFiD-II, MiCA-R into a coherent Digital Finance Regulatory Framework and ensure more alignment between ECSP-R, DORA, FIDA and AI Frameworks. The proposal also contains ideas on how to incentivize Crowdfunding through Tax Measures as well as develop matchfunding mechanisms to combine public and private investments.
In addition to contributions and expert opinions from across Europe, this document draws on feedback from 32 leading ECSP platforms from a wide range of jurisdiction, as part of a survey conducted in 2024 covering all the points mentioned in Article 45 of the European Regulation concerning the report that the Commission must submit to the Parliament and the Council.
Never before have 25 industry associations, together representing 95% of the sector, voiced their support so unequivocally.
“This mobilisation highlights both the potential of crowdfunding and the importance of providing this sector with a framework that is conducive to its development and harmonised across Europe in order to build trust and avoid distortions.”, said Florence de Maupeou, EDFA board member & Deputy General Manager (Institutional Relations & Crowdfunding) at France FinTech.
The EU aims to build a competitive, inclusive and innovative capital market by 2030 through the Savings and Investment Union. According to EDFA, crowdfunding platforms are indispensable enablers of this ambition. Yet, ECSP’s face three major obstacles:
- Fragmented implementation of rules that restrict cross-border growth.
- Limited access to public funding programmes.
- Insufficient recognition in policy and regulation.
To remove these barriers, EDFA and its national partner associations have formulated 10 strategic priorities for the Future of EU Crowdfunding:
- Streamline MiFID-II, MiCA and ECSP-R regulations and create a coherent Digital Finance regulatory framework
- Appoint a Commissioner for Digital and Innovative Finance
- Fully Integrate ECSP within the Savings and Investment Union
- Introduce EU-Wide Crowdfunding Tax Incentives
- De-risk investments by European Crowdfunding Guarantees
- Ensure Regulatory Alignment with DORA, FIDA, and AI Frameworks
- Support Innovation with EU Digital Finance Labs
- Promote and support Crowdfunding-based Matchfunding mechanisms to boost Investments
- Boost Financial Literacy and Investor Education
- Launch a European High-Level Digital Finance Advisory Board
“If Europe follows these recommendations, crowdfunding can unite citizens and businesses in a €1 trillion market that strengthens both our economy and society,” said Ronald Kleverlaan, Chair of Stichting MKB Financiering (NL).
About the ECSP Working Group
The ECSP Working Group within EDFA consists of 25 Fintech Associations (18 of whom are members of the EDFA). The Working Group covers the following jurisdictions: Austria, Bulgaria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Malta, Netherlands, Norway, Poland, Romania, Slovakia, Spain, Sweden and the United Kingdom. The Working Group is chaired by Florence de Maupeou (France), Karsten Wenzlaff (Germany) and Ronald Kleverlaan (Netherlands).
What’s inside the paper
- 10 Key Actions to scale crowdfunding into a €1 trillion industry by 2035.
- Ten Strategic Priorities including:
- Streamlining MiFID-II, MiCA, and ECSP-R into a coherent framework.
- Appointing a Commissioner for Digital and Innovative Finance.
- Introducing EU-wide crowdfunding tax incentives.
- Creating European guarantees to de-risk investments.
- Supporting innovation through EU Digital Finance Labs.
- Recommendations under Article 45 ECSP-R to guide the European Commission’s upcoming report.
Join the discussion
This position paper reflects the collective expertise of EDFA and national associations across Europe. It sets out the steps needed to unlock crowdfunding’s full potential for SMEs, innovators, and investors.