Equity Crowdfunding in Europe: Challenges, Opportunities and Risks for Innovative Startups

Crowdfunding is emerging as an alternative financing method to the traditional ways of funding, generally used for new business ventures, cultural, social or non-profit initiatives. Starting from its general concept, main trends and categories, the paper explores the features of equity crowdfunding examining its tax implications in the opinion of the European Commission and presents an overview of the relationship between equity crowdfunding and venture capital investments. It will add value to the area of equity crowdfunding by looking into the importance of this innovative form of financing, considering its relevant contribution to start and support innovative new ventures.