The pan-European regulatory regime for securities crowdfunding is still very young. Many platforms established before the rules existed have yet to apply to be approved under the new rules.
ECSPR, or European Crowdfunding Securities Provider Regulations, enables a platform to list securities and sell them across the European Union. Issuers may raise up to €5 million in a given funding round.
ECSPR is viewed as a big win for the investment crowdfunding industry in Europe as it removes national member-state barriers for issuers and platforms. EuroCrowd, the association that represents the European crowdfunding industry, lobbied for years to get EU-wide crowdfunding rules.
Yesterday, EuroCrowd shared some data on funding rounds under ECSPR. According to the report:
- Over 2,000 individual transactions (loans and securities) were identified.
- Average transaction value: € 610,000.
- Median transaction value: € 300,000.
- The analysis reveals a prevalence of smaller transactions, with only around 350 transactions exceeding € 1 million.
EuroCrowd said there were slightly more loans than other securities issued on platforms, but securities such as equity generated a higher average funding round.
The data utilized is self-reported by approved platforms, so there are probably limitations.
It should be noted that both Seedrs (part of Republic) and Crowdcube, the largest UK platforms, are operating under the rules. Additionally, Wefunder, one of the largest funding portals in the US, also provides services under ECSPR.
Over time, as the industry grows and more platforms are approved, the data provided by the ECSPR Monitor should get better.