US Crowdfunding Giant Wefunder Expands to Europe, Pioneering International Equity Crowdfunding

Startup investing is more attractive than ever, with popular crowdfunding platforms facilitating investment processes and expanding their market reach globally. Popular U.S.-based crowdfunding platform Wefunder received regulatory approval to expand its operations across the Eurozone region earlier today. In fact, Wefunder is the first U.S.-based equity crowdfunding platform to operate multi-nationally. 

How is this Possible?: The European Union passed the Regulation on European Crowdfunding Service Providers (ECSP) in 2021, allowing international investors to invest in Eurozone-based startups and streamlining crowdfunding investment across the region. Regarding this, Wefunder CEO Nick Tommarello said, “We have worked tirelessly to democratise access to capital for founders for more than a decade, and to be able to bring this opportunity to EU-based companies is incredibly exciting.”

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What This Entails: The San Francisco-based company is currently one of the largest portals in the U.S. equity crowdfunding space and is working toward becoming a major player in Europe as well. After receiving the regulatory approval just a few hours ago, Wefunder has live crowdfunding campaigns of 12 European startups on its website. Moreover, Wedio, a European camera equipment-sharing platform, has already raised over €495,500 through Wefunder since its launch earlier today. 

Also, as the gateway for international investing across the two regions has opened, U.S.-based startups can now raise funds from EU investors as well, thereby essentially doubling the total capital that can be raised in one fiscal year. In addition, Wefunder’s launch in the EU region will boost competition among crowdfunding startups across the U.S. and Europe, which could make startup investing cheaper and/or more lucrative in the upcoming years. 

Challenges Ahead: However, certain regulatory hurdles still remain for non-accredited U.S.-based investors (people who make $200,000 annually and have a net worth of less than $1 million excluding primary residence) as they cannot invest in European startups until the Securities and Exchange Commission (SEC) changes or updates its rules. 

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