Germany has passed its new investor safety law, one that was viewed with trepidation by the investment crowdfunding industry as it impinged on online platforms ability to raise funds, but the final rules appear to be less onerous than initially anticipated.
“The original bill would have significantly impeded the implementation of the Digital Agenda, because it would have hindered the access of startups venture capital. The law adopted today strengthens the startup investment landscape and Germany’s digital competitiveness.”
Germany is the 3rd largest nation in Europe when it comes to alternative finance funding € 140 million in 2014 but lags in per capita volume. Equity crowdfunding for 2014 was estimated at just under € 30 million, but if current growth rates hold – that number could easily double.
“Investor protection is a key issue within the crowdfunding industry, for the confidence of investors is essential to the long-term success of this young and innovative type of financing,“ stated Zwinge. “However, the hearing also showed that all political parties have understood the urgent need for changes to some provisions of the proposed law on the protection of small investors.”