While crowdfunding in Estonia holds significant potential and is appealing to both investors and entrepreneurs, it requires a careful approach to project selection and a thorough understanding of the associated risks.
[2][3] Over time, crowdfunding has become an important tool for financing startups and innovative projects, especially those that may struggle to obtain traditional bank loans.
Each platform has unique features, such as the type of crowdfunding model, funding options, target audience, level of support and advice, and fees charged.
In 2013, significant legislative changes were introduced in Estonia to improve investor protection and standardise services, including the introduction of a crowdfunding licence.
[37] In early 2021, Estonia also passed a bill introducing additional obligations and stricter criteria for crowdfunding platforms and their activities to enhance investor protection.
The question of legal regulation of crowdfunding activity in Estonia remains relevant, especially in light of recent litigation and transparency issues in some projects.