Finnish crowdfunding startup Invesdor has won the first EU-wide licence for offering debt and equity crowdfunding services across all 31 EU and EEA countries.
The MiFID licence will enable Invesdor to offer its services to startups looking for investment, without having to apply for a new local operating licence every time it opens up in a new country.
The European Commission, working alongside the European Securities and Markets Authority and the European Banking Authority, launched a consultation back in 2013 to explore different ways to support the development of the alternative finance market, including new crowdfunding regulations.
“Invesdor was the first player to apply for the MiFID license, because we wanted to create a leading cross-border player for Europe,” Invesdor cofounder and CEO Lasse Mäkelä told Tech City News. “One reason for the early application was the fact that our home country is too small and we need to expand to other countries in Europe using an easier process. The MiFID application process has taken about 10 months and it is very costly and thorough.”
Invesdor was founded in 2012 and has so far raised more than €800,000 itself through crowdfunding rounds and public grants. In addition, more than 30 crowdfunding projects have already raised €4.4m of equity-based funding.
The company says it intends to become the largest cross-border startup funding platform in Europe and it will open a new round of equity crowdfunding to boost this growth on May 5.