Crowdfunding: Business and Regulatory Perspective

TY - CHAP

T1 - Crowdfunding: Business and Regulatory Perspective

AU - Andhov, Alexandra

PY - 2018/1/1

Y1 - 2018/1/1

N2 - Crowdfunding is a way of raising money through small contributions from a large number of investors, i.e. a “crowd.” Crowdfunding constitutes a common denominator for a number of financing methods, from donations through lending up to venture capital, all taking place online. Therefore, there are numerous legal challenges, namely use of copyright, distribution of loans and credits, or possible sale of securities. This chapter focuses on the development of equity crowdfunding, which shows many similarities with classical initial public offering (IPO) as a financing tool, yet on a smaller scale. The chapter analyzes the existing regulatory framework of equity crowdfunding in the United States and in the European Union.

AB - Crowdfunding is a way of raising money through small contributions from a large number of investors, i.e. a “crowd.” Crowdfunding constitutes a common denominator for a number of financing methods, from donations through lending up to venture capital, all taking place online. Therefore, there are numerous legal challenges, namely use of copyright, distribution of loans and credits, or possible sale of securities. This chapter focuses on the development of equity crowdfunding, which shows many similarities with classical initial public offering (IPO) as a financing tool, yet on a smaller scale. The chapter analyzes the existing regulatory framework of equity crowdfunding in the United States and in the European Union.

KW - Faculty of Law

KW - crowdfunding

M3 - Book chapter

SP - 720

EP - 745

BT - Oxford Handbook on IPO

PB - Oxford University Press

ER -