{"id":9031,"date":"2024-07-31T20:08:30","date_gmt":"2024-07-31T20:08:30","guid":{"rendered":"https:\/\/www.turbocrowd.it\/?p=9031"},"modified":"2024-10-12T14:01:26","modified_gmt":"2024-10-12T14:01:26","slug":"equity-crowdfunding-regulations","status":"publish","type":"post","link":"https:\/\/www.turbocrowd.it\/en\/equity-crowdfunding-regulations\/","title":{"rendered":"Equity crowdfunding regulations in Italy"},"content":{"rendered":"
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  1. Who can do equity crowdfunding?<\/a>
  2. The regulations for equity crowdfunding: the obligations of bidding companies<\/a>
  3. The regulations for crowdfunding platforms<\/a>
  4. The most important new features of the ECSP Regulation<\/a>
  5. Want to learn more directly with our crowdfunding experts about the topic you are reading about?<\/a>
  6. Do you need support in preparing a successful crowdfunding campaign and seeking potential investors for your project?<\/a><\/ol>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\n\n\n

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    Equity crowdfunding regulations<\/strong> that provide a framework for companies to raise venture capital online have a long and eventful history.<\/p>\n\n\n\n

    Equity crowdfunding officially arrived in Italy in 2012, and our country was the first in Europe to deal with the regulation of the phenomenon. In contrast, we were among the last to transpose EU Regulation 2020\/1503<\/a>, or ECSP Regulation, which standardized crowdfunding regulations in all EU member states.<\/p>\n\n\n\n

    In this article we delve into the road traveled in the intervening years between these two regulatory extremes to provide a comprehensive picture of what equity crowdfunding means in Italy today<\/strong>.<\/p>\n\n\n\n

    Who can do equity crowdfunding?<\/strong><\/h2>\n\n\n\n

    <\/p>\n\n\n\n

    When, back in 2012, the Italian legislature began introducing equity crowdfunding into our legal system, it did so with the aim of fostering the birth and development of innovative startups by facilitating<\/strong> their access to capital through the Internet.<\/p>\n\n\n\n

    The Growth Decree bis (179\/2012)<\/strong> then introduced the possibility for only high-tech innovative startups to offer their capital shares to the public through online portals operated by banks and investment firms or new intermediaries subject to specific regulation.<\/p>\n\n\n\n

    Initially, therefore, very few companies were eligible for equity crowdfunding. Shortly thereafter, however, this pool expanded: the Growth Decree Law 3.0 or Investment Compact (3\/2015) extended the target to include innovative SMEs<\/strong> and undertakings for collective investment or other corporations (UCIs and SICAVs) that invest primarily in innovative startups and innovative SMEs.<\/p>\n\n\n\n

    In 2017, aided by the success of equity crowdfunding<\/strong> and the increasing difficulty of small and medium-sized Italian companies in accessing capital, came a further extension: the Budget Law opened the possibility of raising venture capital online to all SMEs, innovative or not (companies with fewer than 250 employees and annual turnover of less than 50 million or a balance sheet of less than 43 million euros).<\/p>\n\n\n\n

    In the same year, Decree Law 112\/2017 also extended the opportunity to social enterprises when they are established as corporations or cooperatives.<\/p>\n\n\n\n

    Finally, the ECSP Regulation dropped any restrictions, opening equity crowdfunding to all corporations (so all LTDs and LLCs can do equity crowdfunding<\/strong>).<\/p>\n\n\n\n

    The regulations for equity crowdfunding: the obligations of bidding companies<\/strong><\/h2>\n\n\n\n

    <\/p>\n\n\n\n

    \"\"<\/figure>\n\n\n\n

    <\/p>\n\n\n\n

    Companies that launch an equity crowdfunding campaign are referred to as \"bidding companies\" or \"proponents.\" In order to use this capital raising tool, they must comply with a series of regulations and bureaucratic steps.<\/p>\n\n\n\n

    They are defined by the rules of the Civil Code relating to corporations and the Consob Regulations of 2013<\/strong> (as amended) drafted to address the need to define specific operating methods for the changes introduced by the aforementioned Growth Decree bis.<\/p>\n\n\n\n

    Let's look at the main ones:<\/p>\n\n\n\n