Crowdfunding is a method through which companies (especially start-up businesses) raise capital for their future operations from various types of investors, such as natural persons and legal entities. Investors who want to open a company in Spain by raising capital from crowdfunding platforms have relevant business prospects here, as the field increased in volume between 2013 and 2016 by 564.3%.
At the level of 2013, the total revenues obtained through crowfunding accounted for EUR 17 million, while in 2016 it reached more than EUR 113 million. Our team of specialists in company formation in Spain can offer assistance on the main procedures related to the registration of a crowfunding business.
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Types of crowdfunding platforms in Spain
In Spain, investors have set various types of crowdfunding platforms, for different types of activities. When starting the procedure of company registration in Spain for a crowdfunding platform, the investors must know that the highest volume in terms of capital was raised by the following platforms:
- lending platforms;
- real estate crowdfunding;
- equity platforms;
- reward crowdfunding;
Lending crowdfunding platforms had the highest growth for the capital managed through this investment tool, which represented 54% of all the capital raised in this sector. In 2016, Spain registered 48 active crowdfunding platforms, while in 2015, there were only 43 platforms. The field increased at a rapid pace, as in 2013, Spain had only 19 crowdfunding platforms.
This sector also had an important effect on the employment market in Spain, creating up to 12,000 new jobs. Our team of agents in company registration in Spain can offer further advice on this matter, as well as on the employment regulations imposed here.
Legislation on equity crowdfunding platforms in Spain
Equity crowdfunding platforms are regulated under the Spanish legislation since 2014. The legislation established investment limits available for investors and startup companies. Under the stipulations of the equity crowdfunding law, Spanish startup companies can raise capital in the amount of maximum EUR 5 million, if the capital is invested by professional entrepreneurs.
In the case of capital raised from accredited investors, such companies can obtain up to EUR 2 million. Under the new law, startups can obtain a higher capital, as the limit prior to this law, for both of the above mentioned situations, was situated at EUR 1 million. Investors can contact our team of consultants in company formation in Spain for further advice on this rule of law, as well as on the regulations referring to the types of crowdfunding platforms presented in this article.