Crowdfunding is a new way of financing projects by raising funds from the public.
It consists of raising funds – usually in small amounts – from large numbers of people to finance a creative endeavour (e.g. music, a book, a film, etc.) or a business venture. Crowdfunding campaigns may support local initiatives or projects promoting certain values.
Crowdfunding is usually carried out via the internet and takes various forms:
In France, to foster the development of crowdfunding in a secure environment for contributors (donors, lenders or investors), the public authorities adjusted regulations by issuing Ordinance 2014-559 of 30 May 2014.
The new arrangements come into effect on 1 October 2014.
A certification has also been created to identify platforms that comply with the new rules introduced by Ordinance 2014-559 of 30 May 2014 and Implementing Decree 2014-1053 of 16 September 2014.
Depending on the nature of the proposed funding, crowdfunding platforms may or may not need to have regulated status to carry on their business:
Caution: if the website collects funds on behalf of third parties as part of crowdfunding campaigns, the platform must, at minimum, be licensed as a payment institution by the ACPR or registered as an agent of a payment services provider.
For more information:
Legislation in force:
Updated on: 11/07/2017 09:19