For many Italian SMEs and startups, crowdfunding has become a strategic tool for raising capital without having to rely solely on bank credit or traditional investors. However, the domestic market has structural limitations: small size and investors less accustomed to alternative finance.

Looking beyond national borders can, therefore, offer a real competitive advantage. In several European countries-such as France, Spain, and the Netherlands-crowdfunding is now an established part of the financial ecosystem. Here, investors are more likely to support businesses through digital platforms, and EU regulation (ECSP Regulations) has made it easier to operate transnationally, with a single permit valid throughout the European Union.

For a company in any country, Start a crowdfunding campaign abroad is not just about expanding the investor base-it is also a way to test new markets, increase brand awareness, and position yourself as an international enterprise. Crowdfunding abroad becomes part of a broader strategy of internationalization and sustainable growth.

Why look to foreign crowdfunding markets

Choosing to do crowdfunding abroad is not just a matter of visibility, but of financial efficiency. In many European countries, the alternative finance market is more developed than in Italy: for example, the Netherlands have a market of more than 1 billion euros per year and France reaches 2 billion, compared to Italy's less than 300 million. This means greater availability of capital, more experienced investors and more active platforms in supporting international projects.

For an Italian SME, accessing these markets means:

• reach a broader audience of investors with more advanced financial literacy;
  
• Fit into structured digital ecosystems with ample networking opportunities.
  

Foreign crowdfunding, therefore, can become a Leverage to diversify funding sources, reducing dependence on traditional channels and broadening the stakeholder base.

Crowdfunding and business internationalization

A cross-border campaign can also be a test case for internationalization. This applies not only to Italian companies, but to any European company. In fact, starting a capital raising in a foreign market makes it possible to:

• Test the interest of new customer and partner segments;
  
• Assess the perception of the product or brand abroad;
  
• Build a network of business contacts and local investors.
  

In addition, for companies that already export or enjoy some notoriety outside their own country, international crowdfunding is an opportunity to consolidate reputation e Turning their community of customers into investors.

The advantages of crowdfunding abroad

Crowdfunding abroad can mean two things:

• Launching a campaign on a domestic platform And direct marketing efforts toward both audiences in their own country and a European audience
• Launching a campaign on a foreign platform to engage primarily or solely the local audience and/or secondarily the domestic target audience.

In both cases, some important benefits can be accessed.

Access to a wider and better prepared pool of investors

One of the main reasons for a company to consider a crowdfunding campaign abroad is the possibility of targeting a Broader and more mature investor market. This is true, for example, for Italian companies.
In many European countries, crowdfunding is now an integral part of the local financial ecosystem and investment culture. Investors, both sophisticated and unsophisticated, are more likely to allocate a portion of their portfolio to instruments of alternative finance, such as equity or lending crowdfunding, recognizing their potential for return and diversification.

For an Italian company in particular, this means being able to reach a larger investor base that is more attracted to innovative projects. Added to this is the attractiveness of sectors of Made in Italy excellence such as technology, design, agribusiness or pharmaceuticals. 

In addition, opening up to investors from multiple countries can improve the risk distribution and reduce dependence on the domestic market and the banking channel.

International brand visibility and reputation

A international crowdfunding campaign It also has a marketing and positioning function.
Publishing your project on relevant European platforms allows you to gain organic visibility with international investor communities and media, as well as generate commercial interest in target markets.

For companies already operating abroad, this visibility strengthens the brand credibility: campaign becomes a signal of solidity and dynamism. For those entering an international context for the first time, on the other hand, it represents a’opportunity to make yourself known, test audience response and initiate useful contacts with potential distributors, partners and customers.

Regulatory Harmonization and ECSP Regulation

From November 2021 is fully operational the Regulation (EU) 2020/1503 - ECSPR (European Crowdfunding Service Providers Regulation)., which introduced a unique system of European authorization For crowdfunding operators.

A platform licensed in one member state can offer its services in all other EU countries without the need for new licenses.
For companies, this translates into:

• Greater ease in organizing cross-border campaigns;
  
• a picture of harmonized rules On transparency, investor disclosure and fund management, including documentation that is valid for all countries;
  
• greater protection for all parties involved.
  

The ECSPR is thus an important step toward a single market for alternative finance, simplifying access to capital for European companies that want to grow outside national borders.

The challenges and risks of international crowdfunding

1. Regulatory and tax differences between countries

Starting a crowdfunding campaign abroad involves a careful assessment of the regulatory environment.

Despite the European Regulation ECSP introduced a common framework for operators, some significant differences in the taxation, in the procedures of due diligence and in the investor protection.

For example:

• tax benefits for investors (such as deductions or tax credits) vary from country to country and are not always accessible to nonresidents;
  
• AML verification procedures may differ in timing and documentation requirements;
  
• some jurisdictions require the publication of additional prospectuses or certified translation of promotional materials.
  

Before launching an international campaign, it is therefore essential to have a Specialized legal and tax coaching, to verify the impact of local rules and prepare documentation that complies with the regulations of all markets involved.

2. Linguistic, cultural and communication aspects

For crowdfunding abroad it is crucial not to underestimate The adaptation of the message to the target audience.

Each market has different language codes, sensitivities, and investment habits. For example, investors in a particular geographic area may favor clarity of financial data and exit potential, while others may be more focused on sustainability or social impact of the project.

For this reason, the communication for crowdfunding must be:

• multilingual and culturally focused, avoiding literal translations and enhancing the elements of attractiveness for each country;
  
• consistent across channels and possibly differentiated Based on the audience, if the target audience is multiple;
  
• supported by a public relations plan capable of activating local media and influencers in the target industry.
  

The goal is to convey trust and credibility, making the project understandable and attractive even to those not directly familiar with the company or its background.

3. Additional costs and operational complexity

A cross-border campaign requires slightly more organizational effort than a national collection, which can translate into higher costs. Recall, however, that a crowdfunding campaign within national borders also has a cost of marketing to consider.

The main additional cost items may include:

• translation and localization of campaign materials (video, pitch, business plan, investor deck);
  
• transnational legal and tax services;
  
• digital marketing and international relations activities, sometimes to be planned with local professionals.
  

Therefore it is advisable:

• define a realistic budget That includes all direct and indirect costs;
  
• select platforms that offer multilingual operational support;
  
• set up an internal or external team o mixed dedicated to project management, with clear roles and defined timelines.
  

Careful planning allows you to avoid operational mistakes and turn the international campaign into a real tool for growth, rather than making it a burden on ordinary business.

How to do crowdfunding abroad

The ECSP Regulations, as we have already mentioned, introduced for the first time a single legal framework for crowdfunding services in Europe. Before its entry into force, each member state had its own rules: this made it complex for an Italian company to raise capital in other European countries.

Today, thanks to the ECSPR, a platform authorized by a single national authority (such as Consob and Banca d'Italia for Italy) can operate freely in all member states through the so-called European passport.

For companies, this translates into several operational benefits:

• it is possible to launch a campaign targeting investors from multiple countries with one intermediary and uniform documentation;
  
• transparency and reporting requirements are standardized, simplifying compliance;
  
• investors benefit from a homogeneous level of protection, a condition that increases confidence in cross-border operations.
  

ECSPR enables the collection of up to 5 million a year By project on a European basis.

1. Select the right platform

The choice of platform is a crucial step in the success of the campaign.
For Choose an authorized and compliant platform, you can consult the official register published by the’ESMA (European Securities and Markets Authority).

Although European regulations standardize transparency standards, each platform has specific characteristics in terms of Target investors, preferred sectors, modes of promotion and digital tools.

To identify the most suitable platform, an enterprise should evaluate:

• the geographical and linguistic presence Of the target audience;
  
• i sectors that the platform deals with, if it is specialized;
  
• i support services offered;
  
• the transparency on commissions And on post-campaign management.
  

Careful selection enables alignment of financial goals, company profile, target audience, and visibility expectations, avoiding dispersion of resources.

2. Operational strategies for a cross-border campaign

Once the platform is chosen, the campaign must be planned as a true international expansion project. The basic principles are the same as for domestic crowdfunding campaigns:

• Consider the campaign as a marketing operation
• Aim primarily at target customers and potential customers (expanding to partners and suppliers secondarily)
• offer reward (for equity and reward crowdfunding, less relevant for lending).

 The best performing enterprises follow some common best practices:

• Advance planning: preparation can take several months. It is useful to establish a precise timeline that includes production of materials, legal validation, and precrowd.
  
• Multilingual storytelling: the project narrative must be translated and adapted, not only linguistically but also in cultural references, highlighting elements recognizable to the selected European audience.
  
• Constant investor relations: responding promptly to questions, creating a direct channel of contact with potential investors, and providing regular updates increases trust and participation.
  
• Coordinated digital communication: the crowdfunding campaign must be supplemented with actions on social media, any industry media, and newsletters targeted to the markets you want to penetrate.
  

Finally, careful management of the post-campaign is essential: maintaining dialogue with investors, sharing results and milestones consolidates the company's reputation and paves the way for future collections or business partnerships.

Crowdfunding abroad: an opportunity for whom?

Doing crowdfunding abroad is an opportunity that offers particular potential especially for certain types of companies. Which ones?

1. Innovative startups and SMEs

International crowdfunding is particularly suitable for the startups and innovative SMEs who have a unique value proposition, preferably if they have already validated their business model in the domestic market.
European investors can more easily be interested in projects that present:

• A clear competitive advantage;
  
• a proprietary technology or distinctive product;
  
• A development plan with potential for Europe-wide scalability.

An Italian company that offers a distinctive and innovative product or service, perhaps in sectors in which Made in Italy enjoys particular prestige or in the field of technology, can find an audience of investors abroad looking for high-potential opportunities.

2. Companies with scalable products or already present abroad

Enterprises that have already started a trade internationalization can greatly benefit from cross-border crowdfunding.
In these cases, the campaign becomes a way to:

• Strengthen presence in markets where the brand is already known, converting customers and partners into investors;
  
• measuring the interest of new markets before tackling direct investment in branches or outlets;
  
• Amplify brand visibility by fostering the opportunity to conclude new agreements distribution, industry collaborations or access to new institutional funding channels.

3. Companies with sustainability projects

Another category of companies for which crowdfunding abroad can be particularly effective is that of the Businesses oriented toward environmental and social sustainability.
These themes cut across the board globally, and European investors are showing significant attention to projects that combine economic return with environmental or social value.

Eurocrowd is advocating to the European institutions the need to Integrating crowdfunding into European sustainable growth financing policies, emphasizing the potential of this tool for its ability to engage citizens in supporting the ecological transition. 

Although many sustainability projects are closely tied to a particular area, companies dedicated to developing innovative technologies for clean energy production and storage, sustainable mobility, agriculture, or building efficiency can propose abroad if they meet the following conditions:

• operate in cross-cutting areas;
• propose models that can be replicated or adapted to different contexts;
• Can demonstrate measurable impact metrics.

In Europe, there is no shortage of ECSPR-authorized platforms that have specialized precisely in the’impact investing.

Doing crowdfunding abroad, in conclusion, is an option to consider in order to increase one's competitiveness while simultaneously raising capital. Turbo Crowd also offers its comprehensive marketing consultancy for overseas crowdfunding campaigns.