Crowdfunding service providers
The Financial Supervisory Authority oversees the provision of crowdfunding services in which the recipient of crowdfunding raises either equity or debt funding to finance business activity. The provision of such an investment- or loan-based crowdfunding service is subject to authorisation.
In investment-based crowdfunding, investors are offered as investment objects transferable securities or other shares in a private limited company that meet certain conditions.
In loan-based crowdfunding, the investor lends an agreed amount of money on agreed interest and repayment terms to the owner of the crowdfunding project.
The crowdfunding service provider may also offer individual portfolio management of loans, where the investment objects are loan-based crowdfunding projects offered on the service provider’s platform. In addition, the crowdfunding service provider may have a bulletin board whereby its clients may indicate their interest in buying or selling investment objects originally offered on the crowdfunding service provider’s platform.