Brussels, 9 December 2015 - The European Crowdfunding Network (EUROCROWD) is excited to have joined forces with leading industry associations in supporting the European Commission's efforts to increase equity market financing, while continuing to express concern about the speed and content of individual actions.

FESE, EuropeanIssuers, Invest Europe, Better Finance, AFME, EBF, EFAMA and the ECN welcome the European Commission’s ‘Action Plan on Building a Capital Markets Union’ which is a thoughtful, well-structured package, giving priority to strengthening the European economy and stimulating investment to create jobs and growth. Market-based financing that serves smaller companies well is especially effective in generating jobs: For every five jobs lost by large companies during the crisis in the four largest EU members, small and mid-sized firms created one new job (1). 92% of new jobs are typically created by companies after the list (2).

Increased Equity Market Financing

We welcome the renewed focus on ways to provide the finance that is necessary for growth and jobs, and in particular the emphasis on encouraging equity finance.

There is a need for action (both legislative and non-legislative) at the European level to facilitate more enterprise financing through capital markets by addressing the issues faced by issuers, investors and intermediaries.

The Commission must further consider proposals to:

• Reduce the regulatory barriers and burden companies face when seeking capital;
• Improve the market ecosystem to better serve companies at different stage of growth through a funding escalator offering financing options from different types of investors;
• Ease constraints that restrict investors’ access to broad public equity markets (3) and encourage investments in equity funds, venture capital and private equity;
• Create an equity culture in Europe, including through education and other initiatives to raise awareness amongst small and medium size businesses and of investors of the benefits of