Crowdfunding and alternative fundraising have grown significantly in recent years, particularly in impact sectors and climate tech. However, this momentum comes with a wide diversity of practices. Alongside regulated platforms authorised as European Crowdfunding Service Providers (ECSP/PSFP) such as We Take Part, many unregulated actors have emerged, offering “simplified” fundraising, informal club deals, or unofficial crowdfunding models.

While these solutions may seem attractive in the short term, they raise serious questions regarding security, transparency, and investor protection.

There are around 220 ECSP in Europe (Source: European Commission). They operate within a harmonised European framework defined by the ECSPR (European Crowdfunding Service Providers Regulation), which entered into force at the end of 2023. In France, these platforms are supervised by the Autorité des marchés financiers (AMF), under the oversight of ESMA at the European level.

This regulation imposes clear obligations regarding information disclosure, governance, and investor protection. It aims to secure financial flows while supporting the development of a credible and sustainable crowdfunding market.

Contrary to popular belief, this framework does not hinder innovation. On the contrary, it creates a foundation of trust that is essential for mobilising capital, particularly for long-term and impact-focused projects.

Some platforms or structures offer fundraising outside any regulatory framework. This may take the form of “private” raises, club deals structured like crowdfunding but without authorisation, or platforms operating with no recognised official status.

In these cases, no authority oversees their practices, the quality of the information provided, or the protection offered to investors.

This lack of supervision exposes participants to numerous risks: lack of transparency regarding fund use, absence of post-investment reporting, undeclared conflicts of interest, and even legal risks in the event of disputes. For both entrepreneurs and investors, these gaps can have long-term consequences.

One of the key benefits of a ECSP is the legal security it provides for all stakeholders. Investment terms, rights attached to securities, and disclosure obligations are clearly defined and enforceable.

European regulations (ECSPR via EUR-Lex) and official AMF guidelines strictly govern these practices, significantly reducing the risk of misconduct or fragile arrangements.

As investment volumes in crowdfunding continue to increase, this level of security has become a prerequisite for attracting sophisticated or institutional investors.

KYC (Know Your Customer) procedures are often perceived as cumbersome. In reality, they are a central pillar of the regulated model.

These checks ensure the identity of investors, the lawful origin of funds, and the compliance of financial flows. They are a powerful defence against money laundering and terrorist financing. On the We Take Part website, you can learn more about what a KYC process includes.

For funded companies, this ensures safe entry of capital and shields them from potential reputational or legal risks. For investors, it guarantees a healthy environment aligned with European standards.

Data from sources such as Dealroom, PitchBook, and France FinTech show that investors increasingly value robust investment frameworks, particularly for projects linked to the energy and climate transition.

As climate targets become more demanding, regulation helps channel savings toward credible, measurable projects aligned with low-carbon pathways defined by organisations like ADEME or the IEA.

Regulated crowdfunding thus plays a structural role in financing the transition—combining impact, transparency, and investor protection.

Selecting a regulated platform does not mean choosing complexity, it means choosing trust, transparency, and long-term resilience. Regulation is ultimately a lever for credibility and a key factor in structuring the market.

At We Take Part, we believe crowdfunding can only fully support the climate transition if it operates within an ambitious, protective, and European framework. Because lasting impact always begins with a solid foundation.

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