Broccoli, a Dutch sharefunding platform that invests in a sustainable future, announced on Wednesday, June 7, that it has been granted the ECSP (European crowdfunding) licence from the Dutch Financial Market Authority (AFM).
This European licence means expansion for the green investing platform in terms of investor protection, transparency, operating processes, the supervisory function of the AFM and De Nederlandsche Bank, and access to the European market.
What is an ECSP licence?
The EU created the European Crowdfunding Service Provider licence to safeguard investors and regulate the emerging industry of crowdfunding service providers. This licence must be obtained and its conditions must be followed, according to local financial authorities like AFM.
From November 10, 2023, all crowdfunding service providers must possess the same ECSP licence. If parties do not have this licence, they are operating illegally.
What does the new licence mean for Broccoli?
With this licence, Broccoli claims to become the first and, as of now, the only equity investment platform in the Netherlands that is exclusively dedicated to sharefunding.
The digitalisation of shares is known as sharefunding. This digitisation makes trading in shares simple. The investor, employee, or supplier invests after the corporation makes an offer – money in return for a share in the company.
Wouter Hagoort, co-founder of Broccoli, says, “We have deliberately chosen to focus entirely on shares: sharefunding. By certifying company shares, we make it possible for both professional and private investors to invest digitally in the companies of tomorrow.”
“As an entrepreneur, you speak to a bank or an investment fund when you need money. Traditional investors, however, primarily focus on profit maximisation in an economy where everything is driven by growth. But profit shouldn’t be the main consideration,” believes Broccoli.
A platform with the ECSP licence gives investors the assurance that the platform complies with stringent IT security, privacy, investor protection, and information disclosure standards.
Broccoli’s new licence will also offer possibilities for stock marketability. Investors from all around Europe with an eye towards the global market can now invest via Broccoli because of enhanced regulatory procedures and advancements made inside the IT solution.
Additionally, co-founder Hagoort is now the youngest director of a Dutch financial firm after Broccoli was given this licence.
Hagoort says, “We worked hard on it for the last 16 months. You don’t get a licence like this – rightly so, by the way – just like that.” Receiving the ECSP licence from the AFM means that the company becomes a financial institution.
About Broccoli
Founded in 2022 by Wouter Hagoort and Derrick Neleman, Broccoli aims to contribute to a greener, healthier world and, therefore, believes in investing in it. The company raises expansion money for entrepreneurs who have the confidence to do things differently.
For instance, for innovators who create more sustainable production processes, reduce food waste, and provide nutritious and fair food to customers globally.
“We bring entrepreneurs and investors together. Through our platform, companies can use their equity capital for healthy growth and we ensure that return and impact come together,” says the company.
Neleman adds, “We are there for sustainable consumer brands in the food, drinks and agri sector. Because that’s the business we understand. That’s where our heart lies.”
“For entrepreneurs, traditional financing (through banks) is increasingly difficult. I have experienced this myself as an entrepreneur. Through sharefunding, I raised almost €10M in a short time with my company Neleman. I want to share that positive experience with as many entrepreneurs as possible. That’s why Wouter and I started Broccoli.”
Read the orginal article: https://siliconcanals.com/news/broccoli-receive-european-crowdfunding-licence/
