European Crowdfunding Network – October 2013
"The Equity Model […]. Law 221/2012 restricts the possibility of raising money online only
to Italian entities falling under the definition of innovative start-up.
This provision could be seen as a contradiction to the clear intention of the
European Commission to support the Crowdfunding raising on a wider basis.
In a country like Italy in which 1,000 new companies start every day, this law
could materially limit the application of the investment model and prevent
the "crowd" from deciding which company to back for success in the future.
Another provision which could limit the diffusion of Equity Crowdfunding is that an offer
can be executed and processed only if at least 5% subscription of the share capital is made
by a professional investor. […]
Again this provision could materially limit the raising of money, without bringing any
actual protection of the public investors. The efficacy of this method of investor protection
is questionable, but the limitations it imposes on Crowdfunding do not appears consistent
with the European Commission's view.
Although it is not clear whether AIFMD regime does apply to companies seeking funds
through Crowdfunding platforms (which needs to be further assessed), if it were to apply ,
it would make any attractive cost-reward ratio impossible".
Avv. Massimiliano D'Amico
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