German government mulls change to crowdfunding regulation REFIRE Comment

Currently, crowdfunding regulation in Germany states that it is exempt from the kind of regulatory controls imposed on senior lending and publically-raised equity, which are heavily regulated. At the moment, if the total capital raised by a crowdfunding project does not exceed €2.5m, it is not necessary to have an authorized investment memorandum. Individual investors are not allowed to invest more than €10,000 in a crowdfunding project and it is ranked behind the senior loan tranche.