The Italian Legal Framework of Equity-Based Crowdfunding

Italy is the first country in the world to regulate equity-based crowdfunding, i.e. the collection of capital through public offers of financial instruments (such as shares) conducted via an online funding portal. Some of the restrictions contained in the regulations, such as those regarding innovative start-ups, will result in a cautious and experimental use of this new means of raising funds. Down the road, the Italian legislature may evaluate whether and to what extent the regulations can be improved to benefit a greater numbers of potential users.