​The Financial Supervisory Authority (ASF) announced on Monday that it has authorized the first crowdfunding platform in Romania, SeedBlink. Thus, Seedblink Crowd, which operates the mentioned platform, is the first company authorized by the ASF as a crowdfunding service provider, shortly after the entry into force, in August 2022, of Law no. 244/2022, which regulates this area.

The company is authorized to offer the following crowdfunding services:

• placement without firm obligations of securities and instruments admitted for the purposes of crowdfunding, as well as receiving and transmitting orders regarding these admitted securities and instruments;
• use of special purpose mechanisms for providing crowdfunding services;
• work with the bulletin board.

“This event marks the completion of the first collaboration between the ASF, as a legally competent institution at national level in the field of crowdfunding, and organizations applying for authorization as a provider of such services, and also reflects the continued involvement of the Authority in this pioneering field for the local capital market.” , said Ovidiu Petru, Director General of the Financial Instruments and Investments Sector of the ASF.

What does crowdfunding involve?

Crowdfunding through a financial technology solution that offers small and medium-sized enterprises (SMEs), especially start-ups and those in the expansion phase, an alternative banking financing instrument, respectively, by connecting through crowdfunding service providers to potential investors or business borrowers – the environment, which are looking for funding. Such financing is carried out by means of loans and the purchase of securities or other instruments permitted for the purpose of participation financing.

The implementation of crowdfunding activities involves the involvement of three main participants, respectively: the project developer who proposes the project for funding, the investors who finance the proposed project, and the crowdfunding service provider, which is the “interface” that facilitates the connection between the project developers and potential investors, managing online platform.

With the emergence of these new authorized persons, the capital market will diversify its financial offer for small and medium-sized companies and stimulate innovative entrepreneurship in Romania by accelerating the efficient allocation of financial resources. Thus, the prerequisites are created for the attraction of new categories of investors and the introduction of a new business model for companies, as well as a new financing alternative for the respective companies.