The 13th edition of CrowdCon, held on September 26-27, 2024, in Brussels, served as a significant forum for the European crowdfunding sector. Co-hosted by Eurocrowd and Fintics, the conference brought together industry leaders to address complex issues around regulatory alignment and the evolution of digital finance. Established in 2013, Eurocrowd has positioned CrowdCon as a central event for shaping the future of crowdfunding through rigorous policy discussions and cross-sector collaboration.
GECA’s Strategic Engagement at CrowdCon 2024
At CrowdCon, the Global Equity Crowdfunding Alliance (GECA) took a dedicated approach, taking part in key discussions on regulatory convergence within a growing and often challenging digital finance ecosystem. This year’s event presented GECA with an invaluable chance to expand its network and learn from those who have previous experience in navigating regulatory complexities. In a landscape where EU crowdfunding has often been constrained by fragmented regulations, GECA’s involvement at CrowdCon represents an important step in positioning itself as a committed industry partner, focused on progressing sustainably on a Global level within this rapidly evolving field.
EU Market Challenges and the Evolution of Crowdfunding Regulations
The EU’s crowdfunding sector has historically trailed other global markets, largely due to regulatory fragmentation, which has hampered cross-border operations and elevated compliance costs. It could be said that this complexity has inhibited platform growth and limited financing diversity for small businesses and investors.
In November 2021, after years of advocacy and foundational work by Eurocrowd, the EU introduced harmonized crowdfunding regulations, granting platforms the ability to apply for an “EU passport” to operate across member states under one set of rules. This regulatory milestone reduces entry barriers, streamlines platform operations, and expands cross-border investment opportunities, all while enhancing investor protections. The framework is seen as a crucial, albeit challenging, pathway to transforming the European crowdfunding landscape.
GECA’s Mission and Approach at CrowdCon
For GECA, CrowdCon 2024 was an essential opportunity to contribute meaningfully to industry dialogue on regulatory and operational change in crowdfunding. Andrew Field, Executive Lead of GECA’s Steering Committee, led the alliance’s efforts, emphasizing that GECA aims to advance regulatory conversations and build a robust network of industry supporters while remaining acutely aware of the task’s magnitude. GECA’s objectives for CrowdCon included:
- Knowledge Exchange: Engaging with stakeholders to understand the practical impacts of EU regulations and learn from early implementation successes and challenges.
- Visibility and Advocacy: Communicating GECA’s commitment to data-driven policy-making, with an emphasis on working collaboratively to gather insights from across the sector.
- Networking and Learning: Learning from industry veterans and peers, particularly leveraging Eurocrowd’s substantial experience, and fostering best practices for regulatory engagement.
This involvement underscored GECA’s commitment to achieving an investment ecosystem that promotes innovation—one that will require a collective and sustained effort from all stakeholders. GECA’s dedication to bringing meaningful change was articulated but it was also emphasized that this journey is an incremental process requiring both collaboration and a profound understanding of the complexities involved.
Key Takeaways from CrowdCon 2024: Progress and Future Challenges for Crowdfunding
- Regulatory Developments and Progress:
Mindaugas Valiulis from the European Commission led a discussion on the European Crowdfunding Service Providers Regulation (ECSPR). Three years into its implementation, ECSPR has achieved considerable progress. However, as Valiulis noted, unifying Europe’s crowdfunding landscape remains a work in progress. Joachim Schwerin echoed this, emphasizing the importance of ECSPR in creating a cohesive, cross-border environment for innovation but acknowledging the challenges that persist. - The Global Expansion Debate:
A panel discussion explored the complexities of international crowdfunding expansion, with Dacxi Chain providing insights into the potential of blockchain to bridge European and international markets. Ed Ludbrook – founder of Dacxi Chain, discussed the role of distributed ledger technology in facilitating large-scale investment from North America and Asia-Pacific into European projects, which, while promising, requires careful regulatory navigation to succeed globally. - Blockchain Innovations in Crowdfunding:
The potential of Distributed Ledger Technology (DLT) in equity crowdfunding was highlighted by Andreas Knopf from Invesdor and Dr. Johannes Schmitt of Nyala, who discussed blockchain’s role in simplifying bond registry processes. These advances are part of an emerging trend where digital innovation supports increased transparency and efficiency in financial products, though substantial regulatory groundwork will be needed for widespread adoption. - Crowdfunding for Social Good:
In a session led by Giselle Borg Olivier of Zaar Crowdfunding, discussions focused on the societal impact of crowdfunding, with leaders such as Charlotte Brandsma of Growfunding and Nuno Jorge of Goparity emphasizing the importance of public trust and engagement. These discussions highlighted crowdfunding’s capacity to fund community-centered initiatives, revealing its broader role as a social tool as well as a financial mechanism.
Key Insights and Emerging Trends in Global Equity Crowdfunding
- EU as a Global Benchmark:
CrowdCon discussions affirmed that Europe’s approach to regulatory harmonization could serve as a model for other regions. However, adapting this framework on a global scale will require substantial, coordinated efforts from regions worldwide to accommodate diverse financial ecosystems. - The Vision for a Global Crowdfunding Framework:
Attendees were optimistic about Europe’s progress and recognized the potential for similar frameworks in other regions to unlock international crowdfunding opportunities. Yet, these frameworks will need careful customization and collaboration to support meaningful cross-border investment. - Pathway to a Globalized Equity Crowdfunding Market:
Europe’s regulatory advances provide a promising foundation, but achieving a truly unified, global crowdfunding landscape will demand sustained collaboration and a deep understanding of regulatory constraints across regions.
Reflecting on GECA’s Growing Role and Future Directions
GECA’s Strategic Vision
Andrew Field’s session on “Innovation in a Borderless Investment Landscape” encapsulated GECA’s commitment to fostering a unified crowdfunding environment. During this discussion, Andrew outlined GECA’s strategy: a steady, multi-step approach toward becoming a trusted industry partner to help promote (where necessary to facilitate innovation) positive regulatory change. His insights conveyed GECA’s commitment to working alongside stakeholders, learning from the challenges they have faced, and positioning GECA as a practical, adaptable ally in a complex industry.
The positive feedback received from other delegates underscores GECA’s potential as a contributor to industry-wide change. However, Andrew was keen to stress that the journey toward a borderless investment ecosystem requires not only ambition but also a readiness to listen, learn, and refine strategies as GECA grows within the field.
Feedback and Growing Influence of GECAÂ
Participant Reactions and Expanding Global Engagement
Attendees appreciated GECA’s constructive, solution-oriented approach to regulatory harmonization and were encouraged by the alliance’s commitment to engaging with complex industry issues. Notably, GECA’s network of supporters now extends beyond Europe, reaching regions such as the U.S., New Zealand, UAE, and Africa. This expanding international presence highlights GECA’s resonance in diverse markets, reinforcing its potential to build a harmonized framework for equity crowdfunding.
Increasing Relevance and Strategic Path Forward
The insights gained at CrowdCon validate GECA’s mission and reflect an increasing openness within the global crowdfunding community to align on best practices. As GECA grows its network and continues to engage with key stakeholders, its role as a catalyst for harmonization in equity crowdfunding becomes more attainable yet remains anchored in the need for sustained, collaborative effort.
Next Steps: GECA’s Strategic Vision and Planned Actions
- Building on CrowdCon Insights:
The conference provided GECA with valuable input, which will be instrumental in refining its strategic initiatives. The alliance is committed to making incremental changes that reflect both the needs of its members and the broader crowdfunding landscape. - Actionable Next Steps:
GECA will prioritize translating CrowdCon insights into tangible initiatives, ensuring that its approach aligns with the practical requirements of stakeholders and supports sustainable industry growth. - Continued Research, Engagement and Dialogue:
Looking ahead, GECA will host events that foster ongoing dialogue, helping members stay current with global trends and challenges in the equity crowdfunding sector. These sessions are designed to nurture collaboration, promote shared learning, and empower stakeholders to shape the future of equity crowdfunding. GECA will utilize it’s growing connection to conduct high quality primary research that will identify and capture the true needs and desires of start up businesses, investors and equity crowdfunding platforms on a Global basis.Â
Conclusion: Moving Towards a Unified Equity Crowdfunding Future
CrowdCon 2024 offered GECA critical insights into the current and future state of equity crowdfunding, with discussions underscoring a shift towards regulatory harmonization. However, achieving this vision will demand dedication, cooperation, and strategic adaptability. The industry’s support of GECA’s mission reflects a collective readiness to address regulatory challenges, but the path to a unified crowdfunding ecosystem requires both ambitious goals and a grounded understanding of the work required.
Invitation to Join the Mission
As GECA advances its efforts, it invites current and prospective supporters to join this journey, contributing to the development of a global crowdfunding framework. The insights from CrowdCon 2024 mark an important milestone, setting the stage for a future where cross-border investment can flourish through collaboration and informed, deliberate action.