How Crowdfunding for EU Startups will Change this Fall



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The Expert

We talk to a former guest, Jamal El Mallouki (, Managing Director (MD) and Co-Founder of Crowdfunding SaaS tech company CrowdDesk. He is also chairman of the board of directors of Germany’s Crowdfunding Association (

He talks with us about the upcoming rules, which will harmonize crowdfunding for startups across the European Union.


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The new Rules / European Crowdfunding Service Provider (ECSP)


Currently, Germany has national rules, getting retail investors without any prospectus to invest in startups. Each retail investor can invest up to 25.000 € in total. This limit does not exist for professional investors.  A startup can now raise up to 6 million Euros with crowdfunding.

These rules are about to change with upcoming EU rules. You can dig deeper in the rules with the links below. The main points are:

  • Crowdfunding campaigns can now target retail investors across the EU. They can now scale up to the whole EU market.
  • (Crowd)Fundraising startups can now target directly online retail investors across the EU
  • Crowdlending in Germany is now possible, directly via the crowdfunding platform, the need for an intermediate bank is gone.
    • This also means that crowdfunding is competing with classical bank credit here.
  • EU Startups, running a crowdfunding campaign can now raise funds in the German market, the largest in the EU with 6.7 trn € (8.14 trn US$) in private household wealth (according to Bundesbank, as end of 2020).
  • Fundraising without prospectus is possible, up to 5 mn Euros


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  • Is your startup in need of a bank account in Germany? Try our partner affiliate Penta
  • Looking to open a bank account to shift between crypto and fiat? Try our partner Bitwala with this affiliate link here

The Video Interview is set to go live on Tuesday, May 18th, 2021, at 17.00 CET


The Audio Interview Podcast

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Other Interviews with the CrowdDesk-Team (Johannes, the other half of the founding team)


Further Readings / Additional Resources



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The Interviewer

This interview was conducted by Jörn “Joe” Menninger, startup scout, founder, and host of Reach out to him:


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[0:00] Music.

[0:08] That I owe you were podcast and YouTube blog covering the German startups.
With News interviews and Live Events hello and welcome everybody this is Joe from startupradio diode
your startup podcast and you to block from Germany as well as the world’s first internet radio station dedicated to startups and.
Companies today I do have an expert on crowdfunding here with me hey tomorrow how you doing hi yeah thanks for having me.

[0:41] Probably my pleasure there’s a very simple reason for you
being in my podcast not only that you’re one of the founders of crowd desk where my frequent audience may already know you harness your co-founder but there are changes
Crowdfunding regulations on the horizon on the European level and that is something we want to take up especially since the changes are a little bit in the future so everybody can get ready now stay ahead of the curve with us can you give us like
a little overview what is now possible in terms of crowdfunding in Germany.
Yeah in Germany we have several chance to to to raise Capital first of all we introduced on National basis National level several.
My collations 2015 and then in 2017 which enables customers which enables a company’s and she was to race up to 6 million euros without.
Creating a Prospectors.

[1:49] And addressing retail investors via an internet platform.
That is already possible the maximum the limit of an investor
who canvas one single acid on single company is up to 25,000 Euros unless he is.
His no return investor if he’s a professional Institutional Investor he has no limit for his investment yeah that’s the
of the brief a brief summary to the regulation which is given a Germany on a national level let me
quickly get to buzz words out of the way a prospectus means you have to hire a very expensive usually very good law firm and they have to draw the perspective
which can reach something like Fifty a hundred Pages where you have to detail like all the stuff that is going on it’s very expensive it has liabilities in it so startups usually want to circumvent it because
as I said it can be very costly but if you are looking for that amount of money you should totally have to do that and the second one was a you were talking about a professional investor and that is something
in Germany and in the US it is always defined by certain income and asset levels or profession.

[3:15] Levels of Professional Knowledge that are in the local in the National Security laws and therefore you have a special.
Separation here so retail investors on a little bit more protected by law and for professional investor well you lose the money you have to live with it.
That’s basically the rule so now we’re talking yeah absolutely sorry.

[3:41] Yeah absolutely right yeah have to live with it you took the risky you do it you lasted that’s it now complaining but let us now talk a little bit about
what changes are on the horizon what’s like the dimension of the Lord and where does it apply.
What’s what is coming now is the the escp that means e CM d c– s p stands for upin crowd.
Crowdfunding service provider it’s a new law which enables crowdfunding platforms to operate not only in their country in this specific country where they where they started but.
Also to address.

[4:23] Particular 500 million European potential investors that means it is the the first regulation for crowdfunding in Europe which enables crowdfunding platforms to scale up on a European level
that is the main the main difference to the to the current situation the EC SP enables issuers then
to raise up to 5 million euros without Prospectors but they can address our investors in every European country.
And that is something which is absolutely groundbreaking because this is this is something absolutely new especially for for companies which
operating within the financial sector this heterogeneity which is given by the the national regimes.

[5:19] It’s completely broken up so that we have here in this case and no homework how much Gene
regulation to scale up crowdfunding on the European level
that means for example a startup from Estonia can make there with Local crowdfunding Company campaign and can raise funds all over the European Union in Paris in Stockholm in.

[5:47] In Berlin in wherever Lisbon.
All the European Union one rule one regulation and the usual disclaimer that doesn’t hold true for taxes but that’s a topic we totally have to skip and you totally have to work out with your tax professional.

[6:04] You’ve been talking about up to five million are we talking about Equity are we talking about that are we talking like a mixed method in capital.
The general there are different financial instruments this is up to the National regulations in Germany we can use securities
as financial instruments that
covers as well Equity financial instruments and on the other hand so called for moocs and Lang this is a group of financial statements for instance for example the
subordinated loans or participating loans are part of this group
all financial instruments these are the the financial terms covered in Germany that means if you are an issuer
you want to raise money and your settle in Germany this…


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