Crowdfunding is a type of alternative business funding. Since the end of 2016, crowdfunding has had a legal framework in Belgium which recognises and defines it. This article from Leo Peeters of Peeters Advocaten-Avocats in Brussels, explains the rules, the different types and the benefits, and explores if the new framework provides sufficient transparency.
Crowdfunding can be regarded as a collective fundraising effort on the part of a number of investors. Their investments are combined to fund a different individual or organisation who needs funds for a specific project. It is an alternative form of funding which often leverages the internet as its platform.
The different types of crowdfunding
There are various types: equity crowdfunding, credit funding and donation funding. Belgium's Act of 18 December defines a crowdfunding platform as any natural or legal person who provides or offers alternative funding services in Belgium, and which is not a regulated enterprise.
To read the full article, click here: https://www.alliottgroup.net/practice-management-resources-for-owner-managed-firms/crowdfunding-in-belgium/
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
