As European leaders gather to discuss competitiveness, growth and the future of the Single Market, one issue stands out across the fintech and investment ecosystem: how European crowdfunding under the ECSP Regulation can mobilise more private capital, faster, and in a way that supports innovation without undermining investor protection.

Against this backdrop, a broad coalition of crowdfunding platforms, industry associations and service providers has come together to deliver a clear and focused message to EU leaders ahead of the February European Council summit, highlighting a practical regulatory adjustment that could unlock additional private capital without reopening the existing framework.

A strong and representative market signal from European crowdfunding

The joint letter brings together 21 national and European associations and industry alliances, alongside 36 crowdfunding platforms licensed under the European Crowdfunding Service Providers Regulation (ECSP-R) and 4 service providers working closely with these platforms.

Collectively, the signatories represent more than 90 per cent of the total crowdfunding volume operating under the ECSP framework. This makes the initiative one of the most representative market-driven calls for adjustment since the Regulation entered into force.

The message is straightforward: the current EUR 5 million threshold under the ECSP Regulation has become a bottleneck for growth, and a targeted adjustment is both justified and necessary.

From EUR 5 million to EUR 12 million: a proportionate ECSP threshold adjustment

The coalition calls on EU leaders to raise the ECSP fundraising threshold from EUR 5 million to EUR 12 million, while leaving all other elements of the Regulation unchanged.

Raising the threshold would allow crowdfunding platforms to support larger funding rounds for innovative SMEs and scale-ups, facilitate institutional co-investment alongside retail investors, and unlock additional private capital for sectors where Europe needs to accelerate, including deep tech, artificial intelligence and other innovation-driven industries.

Importantly, the proposal mirrors recent EU legislative developments. Under the EU Listing Act, the prospectus exemption threshold has already been raised to EUR 12 million. Aligning the ECSP threshold accordingly would create a more coherent financing continuum, allowing companies to move more smoothly from crowdfunding to capital markets.

Strengthening competitiveness without weakening investor protection

One of the central arguments put forward by the signatories is that crowdfunding platforms often provide stronger investor safeguards than alternative funding routes available above the EUR 5 million threshold.

“A company can raise up to €8 million on its own in certain European countries, but is limited to a ceiling of €5 million if it goes through an approved platform, which makes no sense. Raising the threshold would allow platforms to offer a wider variety of projects and investors to better diversify their risk.” , said Florence de Maupeou, EDFA board member & Deputy General Manager (Institutional Relations & Crowdfunding) at France FinTech.

It is therefore increasingly difficult to justify a situation where companies can raise larger amounts independently, but are prevented from doing so via regulated platforms designed specifically to protect investors.

From EDFA’s perspective, the discussion is less about revisiting the foundations of the ECSP framework and more about ensuring that it continues to function effectively as market conditions evolve across the European Union.

The proposed change is deliberately narrow in scope. It does not reopen the ECSP framework, introduce new risks, or lower regulatory standards. Instead, it focuses on a single lever that can deliver immediate impact.

A timely signal to markets and innovators across the EU

At a moment when European competitiveness, strategic autonomy and investment capacity are high on the political agenda, the coalition argues that this adjustment would send a strong and timely signal.

“Europe needs to be more competitive, and this proposal makes it possible to generate more funding for innovative companies while at the same time keeping the consumer protection in place.”, said Karsten Wenzlaff, Co-Chair of the ECSP Working Group at the European Digital Finance Association, Board Member and Secretary-General of Digital Invest Germany

It would demonstrate that Europe is willing to fine-tune its regulatory frameworks to support growth, innovation and capital formation, while preserving trust and stability in financial markets.

The initiative reflects developments across EU Member States and the broader European crowdfunding market operating under a single regulatory framework. For EDFA and its members, it aligns with a broader objective of ensuring that digital finance regulation remains fit for purpose, responsive to market realities, and supportive of Europe’s long-term economic ambitions, while remaining engaged with policymakers and stakeholders to support proportionate, evidence-based adjustments that strengthen Europe’s digital finance ecosystem.

Read the full joint letter and policy paper
The full text of the joint letter, including the proposed amendment to Article 1 of the ECSP Regulation and the list of signatories, is available below.