Crowdfunding

In crowdfunding in the form of a donation, the Internet user makes a donation of money without return on investment the proponent also speaks of love money. Non-financial consideration may be offered (samples or goodies, for example).

The law does not fix no ceiling for the amount of the donations.

Regardless of their funding and service model, crowdfunding platforms must comply with the obligations corresponding to the activities carried out: fundraising, holding and management of funds, public offering, distribution of financial products...

Registration

Crowdfunding platforms (or crowdfunding intermediaries) must be registered in single register of insurance intermediaries. The register shall be managed by theORIAS: titleContent and can be viewed online.

Consultation of the register of insurance intermediaries

If the platform itself provides the payment services, it must be approved aspayment institution. Such approval shall be issued by theSupervisory and resolution authority (ACPR), an independent administrative authority backed by the Banque de France.

On the other hand, if the platform entrusts the collection of funds to an authorized payment service provider, it must be approved by the ACPR aspayment service agent.

ACPR (Authorization Portal)

Information to be provided

The crowdfunding platform shall comply with the following obligations:

• Define the conditions of access to the platform and the conditions of access to the services offered: in its general conditions of sale (GTC) and use (GTC)
• Indicate the subscription procedure and any reimbursement in case of collection failure
• Inform Internet users about the financial characteristics of the project (amount, interest rate, reimbursement by the project owner, withdrawal option...)

• Declare to Cnil: titleContent the collection and processing of users' personal data

The platform must also grant specific protective measures to investors uninformed (non-professional). Such protection measures shall take the form of a knowledge test, a simulation of the ability to bear losses and a specific warning for any investment exceeding a certain amount.

In addition, a pre-contractual reflection period of 4 days allows non-sophisticated investors to refrain from investing.

It shall provide an annual activity report and organize the monitoring of financing operations, even if it has ceased operations.

Crowdfunding is for everyone: the project holder may be an individual, a professional, an association, a community, etc.

It is particularly suitable for company creators and buyers who find it difficult to mobilize the funds needed to implement their project through traditional financing methods (e.g. bank loan).

To help you find a platform adapted to your project, you can use the website developed by the association Crowdfunding France, the Caisse des Dépôts et Consignations and Bpifrance.

Find the right crowdfunding platform for your project

As the project owner, you must define project specifying the subject of the project, the amount, the timetable, the financial projection and the expected result.

Within the framework of equity crowdfunding or crowdequity, the investor contributes a sum of money to the business of the project owner and receives in return of business securities (shares) issued by the latter.

The investor becomes shareholder of the business carrying the project. It has a right of information to the company and participates in general meetings. He collects dividends and can sell its shares.

Regardless of their funding and service model, crowdfunding platforms must comply with the obligations corresponding to the activities carried out: fundraising, holding and management of funds, public offering, distribution of financial products...

Change of status

Crowdfunding platforms in the form of interest-bearing loans and/or social securities have until 10 november 2023 to get the new European statute for a European crowdfunding service provider.

Approval shall be granted by theFinancial Markets Authority (MFA).

At the end of this transitional period, only providers authorized in accordance with the European Regulation will be able to offer crowdfunding services in securities or interest-bearing loans in Europe. This status will replace the current status of Participatory Investment Advisor (CIP).

On the other hand, thecrowdfunding intermediary (IFP) is preserved, to cover free loans, grants, online jackpots and the financing of projects that do not generate economic profit.

Registration

Crowdfunding platforms are subject to the requirement to be registered in the single register of insurance intermediaries. The register shall be managed by theORIAS: titleContent and can be viewed online.

Consultation of the register of insurance intermediaries

If the platform itself provides the payment services, it must be approved aspayment institution. Such approval shall be issued by theSupervisory and resolution authority (ACPR), an independent administrative authority backed by the Banque de France.

On the other hand, if the platform entrusts the collection of funds to an authorized payment service provider, it must be approved by the ACPR aspayment service agent.

ACPR (Authorization Portal)

Information to be provided

The crowdfunding platform shall comply with the following obligations:

• Define the conditions of access to the platform and the conditions of access to the services offered: in its general conditions of sale (GTC) and use (GTC).
• Indicate the subscription procedure and any reimbursement in case of collection failure
• Inform the Internet users about the financial characteristics of the project (amount, interest rate, reimbursement by the project owner, right of withdrawal...).

• Declare to Cnil: titleContent the collection and processing of users' personal data

The platform must also grant specific protective measures to investors uninformed (non-professional). Such protective measures shall take the form of a knowledge test, a simulation of the ability to bear losses and a specific warning for any investment exceeding a certain amount. In addition, a pre-contractual reflection period of 4 days allows non-sophisticated investors to refrain from investing.

It shall provide an annual activity report and organize the monitoring of financing operations, even if it has ceased operations.

Crowdfunding is for everyone: the project holder may be an individual, professional, association, community, etc.

It is particularly suitable for company creators and buyers who find it difficult to mobilize the funds needed to implement their project through traditional financing methods (e.g. bank loan).

To help you find a platform adapted to your project, you can use the website developed by the association Crowdfunding France, the Caisse des Dépôts et Consignations and Bpifrance.

Find the right crowdfunding platform for your project

As the project owner, you must define project specifying the subject of the project, the amount, the timetable, the financial projection and the expected result.