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.

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