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French Crowdfunding Laws Now in Force

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Crowdfund Insider by JD Alois | October 2, 2014

French Crowdfunding starts 600x469 300x234 - French Crowdfunding Laws Now in ForceAs of October 1st, new regulations and guidelines managing “financement participatif” or crowdfunding are now in force. The ordinance was initially filed this past May and a consolidated version was published yesterday.

France jumped forward earlier in 2014 led by a government Minister Fleur Pellerin. A noted rising star in the French political scene, Pellerin became a well known advocate for investment crowdfunding seeing the potential to benefit a struggling French economy. She published an interesting article on entrepreneurism titled, ”Innovation: The French Way”, promoting economic innovation. In the document Pellerin stated,

“Innovation is the engine that drives competitiveness, growth and employment in the fastest-growing economies all over the world. Making innovation a priority has become a must for France and for Europe.”

Pellerin’s portfolio has since changed as she is now the Ministère des Affaires étrangères et du Développement international.

Related: French Startups Can Now Raise Up To $1.4 Million In Crowdfunding And Syndicates In France

The updated framework that simplifies the process for crowdfunding platforms to operate is expected to receive additional changes by authorities going forward.

While some industry commenters had hoped the amount allowed under French crowdfunding laws would by increased to Euro 5 million, campaigns may raise up to Euro 1 million.  Still this amount is greater than the current retail crowdfunding statute in the United States – a contrast that was highlighted in France.

Related: France to support private 'crowdfunding'

The French regulations addresses equity, debt and donations based crowdfunding.  Investment portals or intermediaries have been divided into three categories.  For loans, either interest free or generating interest, this asset class falls under the category of  ”intermediaire en financement participatif (IFP). For securities including equity, these intermediaries would come under the “conseiller en investissement participatif (CIP).  There is also the prestataire en services d’investissement (PSI) that may offer securities as well.  A PSI may give advice and must be approved by the ACPR.  All three types of securities platforms must be registered with ORIAS.  A PSI is a more involved involved crowdfunding platform that also has certain minimum capital requirements.  The CIP may not offer services in other EEA countries and has other limitations.

All investment platforms must register with the authorities and are compelled to comply with certain requirements and skills.  Portal managers are expected to have a background in banking or finance and must not be bad actors.

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Crowdfund Insider also published the infographic below, which was created by Financement Participatif France, a relatively new association in France that advocates for crowdfunding.

According to their data:

  • For the first half of 2014 Euro 37.4 Million was generated via loans.
  • This amount is almost double during the same period of 2013
  • Donations based crowdfunding registered Euro 19.2 million
  • This amount is almost double during same period of 2013
  • Loan based crowdfunding posted a 98% success rate
  • Since 2008 a cumulative total of 1 million individuals have funded campaigns

[Click on infographic to enlarge]

Crowdfunding in France First half of 2014 A - French Crowdfunding Laws Now in Force


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The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada crowdfunding hub providing education, advocacy and networking opportunities in the rapidly evolving crowdfunding industry. NCFA Canada is a community-based, membership-driven entity that was formed at the grass roots level to fill a national need in the market place.  Join our growing network of industry stakeholders, fundraisers and investors. Learn more About Us | Crowdfunding | Support NCFA.


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