Crowdcube has become the first platform to operate under new EU regulations as it expands across Europe.
The crowdfunding platform will now be able to help more European companies raise capital and drive engagement, loyalty and advocacy from their communities.
The new regulation, which came into effect this week, harmonises the existing patchwork of crowdfunding regulations across Europe.
Companies in the UK and EU will now be able to raise up to €13 million from retail investors in a single offering of either primary or secondary shares: €8m from UK investors and €5m from European investors.
“This change in regulation in the EU has been a long time coming. We are delighted that this form of fundraising is now more readily available to founders and companies across Europe,” said CEO and co-founder Darren Westlake.
“We have a decade of knowledge and expertise in the UK, which we can now leverage fully in a much larger market, and are well-positioned to capitalise on the new regulations and help businesses engage with their customers and communities in Europe for the very first time.”
Identifying and supporting the next generation of tech entrepreneurs
The platform has raised €1.2 billion for 1,130 UK and European businesses including Revolut, Cowboy and Citymapper from a community of over 1.2m retail investors.
The amount of money privately-owned EU businesses could raise previously without a prospectus was capped at €1m, too small for high-growth businesses. The regulation increases the limit of how much businesses can raise to €5m, as well as setting a new legal framework for the day-to-day operations of crowdfunding platforms and strengthening protections for investors.