Czech crowdfunding association

The association is interested in bringing together all interested entities, such as the platform operators themselves, as well as future investors, bonded representatives, legal offices, appraisers, various intermediaries, but also project owners.

Crowdfunding, or group financing, is the linking of large groups of small investors with entrepreneurs who seek alternative financing. The new Regulation No. 2020/1503 on European crowdfunding service providers for businesses regulates credit crowdfunding, where an investor provides funds to a funded business with an obligation to return them and pay interest, and investment crowdfunding, where an investor purchases transferable securities issued by the funded business, typically shares or bonds, or buy shares in the financed enterprise. On the contrary, for example, popular charitable crowdfunding is not subject to the new regulation.

Due to the novelty of the law and the absence of secondary legislation, the power of the investor is placed supremely on a rational level, when the future investor will take into account factors such as the current stable and strong position of the company on the Czech and Slovak markets, the promised rate of appreciation, the uniqueness and attractiveness of the projects in the platform, brand tradition, security, etc.