The Cohesion Policy is one of the key instruments of the European Union to promote harmonious development and to reduce disparities among regions, thus strengthening economic and social cohesion.
Acting towards this ambitious goal requires innovative policy mechanisms that crowd in private investments to address the diverse market needs and mitigate market failures, while at the same time improving the efficiency and usefulness of public spending.
In this context, crowdfunding has emerged as a new source of finance. Innovators, social entrepreneurs, non-profit organisations, SMEs or any citizen can use crowdfunding to attract resources from investors to finance their business ideas through digital platforms, thus contributing to the democratisation of access to finance.
The development of crowdfunding presents an opportunity for ESIF Managing Authorities (MAs) to leverage on these platforms to channel resources towards segments of the market that are currently not covered by traditional financing players, but that are pivotal for the economic and social development of the European Union.
This report explores synergies between the Cohesion Policy and crowdfunding by assessing the strategic, operational and legal considerations of combining ESIF with crowdfunding, and presenting several case-studies and blueprints that could be used by MAs as a first step when investing in crowdfunding.