“Crowdfunding” is the term for a new financing possibility. Private investors are recruited via public campaigns, in general via the internet. That way it is possible to fund larger projects by collecting many small amounts. The European Commission regards crowdfunding as an option to support the European economy and is currently analysing potentials and risks. Apart from that, it is the intention of the Commission to launch a "European Crowdfunding Stakeholder Forum (ECSF)". As an analysis by the Austrian Federal Chamber of Labour (AK) shows, crowdfunding is not without risk, in particular with regard to consumers.The AK carefully examined eighteen crowdfunding platforms from Austria, Germany, Great Britain and Switzerland for its analysis. As it turned out, these platforms offered a variety of models. The range reached from donations via types of investments up to loans. However, what gives cause for concern is the fact that there are no uniform information standards on risks, costs, business conditions and rights of withdrawal.
Hence, the AK requests a uniform information standard as well as mandatory clear risk information. Apart from that, licence obligations and the conditions to conduct a trade have to be ensured, platforms have to be registered by supervisory bodies and must be published in a public register; licence obligation and prospectus law may not be watered down.
More information:
AK Wien zu Crowdfunding (Available only in German)
AK Analyse „Crowdfunding unter dem Aspekt des Verbraucherschutzes“ (Long version only available in German)
AK Analysis “Crowdfunding”(Short version)”