Crowdfunding, which refers to an open call to the public to raise capital targeted for a specific project, is developing rather rapidly across the globe. It is augmenting economic growth through new and increasing flows of credit to SMEs. This cost-efficient, highly accessible form of finance is enabling investors to diversify their portfolio as well as providing them a low-cost alternative for channeling savings to the real economy. In light of the EUR 4.2 billion (circa) raised through crowdfunding platforms in the EU in 2015, it comes to no surprise that one of the main objectives set forth in the Capital Markets Union Action Plan is to strengthen the different sources of alternative finance, including crowdfunding.