Lendahand gains new EU crowdfunding license
Lendahand has become one of the first European crowdfunding platforms to win the new European Crowdfunding Service Provider (ECSP) license.
The lender was granted a license from the Dutch Authority for Financial Markets (AFM). This is the first time that the AFM has issued a crowdfunding license under the ECSP rules.
All European crowdfunding platforms are required to have the new license by 10 November 2023. The license aims to standardise EU crowdfunding rules, and make it easier for platforms to do business in different EU countries.
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“The new European crowdfunding regulation allows us to recruit more investors and enable more investments in developing countries,” said Lendahand’s chief executive and co-founder Koen The.
“It brings us one step closer to our goal of closing the funding gap for underfunded small-and medium-sized enterprises.
“We will be able to offer a service where investors’ funds are automatically reinvested in pre-selected projects. It’s a functionality we’re currently working on.”
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Lendahand had previously operated under a MiFID license, which required the platform to go through a lengthy admin process before selling its products in other European markets. The platform said that the new ECSP license is a “better fit” for its international activities as it plans to scale up.
“Harmonising the licensing requirements will allow crowdfunding platforms to offer their services across the EU and allow investors to benefit from an aligned and enhanced investor protection framework,” the platform said.
“This consequently creates a new opportunity for Lendahand to expand their crowdfunding offering to potential retail investors all across Europe.”
In 2017, Lendahand partnered with Ethex to launched an African initiative called Energise Africa, for UK investors to invest in solar businesses on the continent from £50. Investments through Energise Africa can be held through Innovative Finance ISAs.
Earlier this year, Lendahand acquired French social impact microcredit crowdfunding platform Babyloan.
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