Crowdfunding holds out the promise—or threat—of revolutionizing how funds for projects or businesses are raised. Managing the complexities of this emerging method of raising capital requires experience in multiple disciplines, including securities, tax, financial services and e-commerce.

Dentons' specialized team of lawyers has invested time in understanding how crowdfunding works now, and how it might evolve in the future. Clients consult us on a wide range of crowdfunding legal issues, including:

• Businesses establishing novel models for equity crowdfunding
• Securities brokers and dealers adopting or enhancing Internet-based platforms
• Portals for non-equity crowdfunding, such as platforms that offer donation, reward and/or pre-sale models
• Financial service institutions and new entrants interested in peer-to-peer lending
• Accelerators, incubators, angel organizations and startups creating portals or raising funds through crowdfunding
• Support organizations that provide back office and other services to crowdfunding portals

Our expertise spans multiple disciplines:

Securities

Equity crowdfunding includes both online "matchmaking" platforms geared to accredited or qualifying investors and emerging models for offerings to retail investors. More broadly, equity crowdfunding encompasses the use of the Internet to offer securities, solicit investors or advertise offerings. Dentons' crowdfunding team gathers senior lawyers who have been closely involved in the ongoing development of relevant securities regulation. In jurisdictions where forms of equity crowdfunding are already legal, we advise on local licensing and compliance requirements.

Tax

Crowdfunding of any kind involves complex tax issues, especially in cases where funds cross borders. The tax lawyers on our crowdfunding team understand these issues, which include income tax, charitable donations, sales tax and cross-border withholding tax considerations.

Financial Services

From interactions with payment processors to money laundering compliance, our financial services group helps you navigate the myriad money services issues associated with crowdfunding.

E-commerce

Dentons' seasoned team advises on all aspects of e-commerce: marketing and advertising in online media, anti-spam and privacy laws, specialized terms and conditions for crowdfunding portals, and more.

Recognizing that the Internet has no borders, we have established a team that can provide a global view on crowdfunding and related regulatory regimes.

Insights

EU Crowdfunding Regulation and Directive - Preparing for November 2021 and 2022

December 22, 2020

Europe: The European market for crowdfunding has grown rapidly in recent years and is likely that it will grow further as investors look for yield-generating opportunities and people, organizations and businesses, notably start-ups can raise financing through websites (also known as portals or crowdfunding platforms) that acts as service providers or intermediaries between those wanting to invest and those wanting investment.

Dentons at the European Crowdfunding Network’s 9th CrowdCon held during
15 to 17 December

December 21, 2020

Europe: We were proud to drive the debate forward on the regulation of distributed ledger technology (DLT) in the European Union and further afield during the European Crowdfunding Network’s 9th Crowdfunding Convention. 

The new ECSP-Proposal reaches the home straight on harmonized crowdfunding rules

July 30, 2020

EU: The European Union moved a step closer on July 20, 2020 by approving a legislative proposal for a Directive and a Regulation introducing harmonized rules regulating crowdfunding. These new EU-wide rules aim to improve access to crowdfunding, notably for small investors and businesses in need of funding, particularly start-ups. Investors on crowdfunding platforms will benefit from a better protection regime and a higher level of guarantees, based on clear rules on information disclosures for project owners and crowdfunding platforms.

View all insights for Crowdfunding

News and Events

Recent Press Releases

Seminar: Crowdfunding - A Lawyer's Perspective

July 31, 2015

Crowdfunding is not a new concept, but has become a hot topic this year. Jointly organised by Rodyk and the Singapore Venture Capital & Private Equity Association ("SVCA"), the tea time talk took a closer look at the crowdfunding landscape in Singapore from a lawyer's perspective.