European Crowdfunding After ECSPR
A lot has changed since the ECSPR entered into force in November 2023, creating a single European market for crowdfunding. A report by Over Ventures, which examines the most significant European markets, provides an excellent summary of developments in the equity-based crowdfunding sector.
A Mixed Market Environment
From a historical perspective, base interest rates across Europe have been high. In such an environment, liquid, short-term, and predictable instruments become more attractive to investors—whereas crowdfunding is anything but. This negative pressure may be offset by the fact that, by 2025, venture capital investments are estimated to have declined by 30% compared to the peaks of 2021–2022. This could redirect startups toward crowdfunding, as they continue to require external financing.
The introduction of the ECSPR initially created legal burdens and some uncertainty. However, from the perspective of service providers, it is a positive development that the regulatory environment has since stabilized.
Key Markets and Sectors
France has become the center of European crowdfunding. In 2025, crowdfunding campaigns totaling €98 million were conducted there, accounting for 35% of the total European market. Italy follows with a 14% market share, and Spain with 13%.
In terms of growth dynamics, the Dutch and Irish markets expanded the most rapidly, by 70% and 40% respectively. Meanwhile, Slovak service providers—who were not even active in 2024—raised €15 million for their clients by last year.
In 2025, nearly one-third of all capital raised was directed to companies operating in the life sciences sector. Startups and SMEs in the food industry and technology sectors accounted for 19% and 17% of the total capital raised, respectively.
Two Years After EU-Level Harmonization
One of the greatest advantages of the ECSPR framework is its universal applicability across all EU Member States and its facilitation of cross-border fundraising. However, relatively few market participants have taken advantage of this opportunity: only 32% of the campaigns launched last year were cross-border in nature.
A two-tier market structure appears to have emerged as a result of the regulation. One tier consists of large-volume, sophisticated, and transnational campaigns, while the other comprises small, local fundraising initiatives.
Overall, the ECSPR has successfully harmonized the regulatory environment governing crowdfunding service providers—except in one major country. In Germany, platforms regulated under national law continue to hold a dominant position. 86% of the German market is controlled by platforms governed not by the ECSPR but by German national legislation. As a result, ECSPR-compliant providers in Germany facilitated campaigns totaling only €8.1 million, which would place the country eighth in the ranking. However, if non-ECSPR-compliant platforms were also included, Germany would have ranked second in 2025.
Outlook for 2026
Following the corrections and consolidation seen in 2025, the crowdfunding sector can expect greater predictability and modest growth this year. The ECSPR has reshaped the European market and triggered clearly identifiable trends.
The compliance burden imposed by the regulation is encouraging mergers and acquisitions (M&A), raising questions about the long-term sustainability of healthy competition. Potential updates to the regulatory framework are expected to address secondary markets for crowdfunding, opening new perspectives for investors.
As institutional players increasingly appear as investors in crowdfunding campaigns—provided the above conditions are met—2026 could prove to be an excellent year for the sector.
