Testing instrument for combining crowdfunding and ESIF funds - Extremadura
Description
Purpose and Goals
The pilot project aims to test and implement a match-funding mechanism that combines private contributions raised through crowdfunding platforms with structural funds. This innovative approach will:
- Strengthen the regional economy by piloting new co-financing models.
- Boost the development of new business projects through co-investment, creating a multiplier effect.
- Enhance public-private financing formulas and maximize the impact of European Union funds.
Regional Decree and Budget Allocation
To implement this initiative, Extremadura will introduce a regional decree to regulate the grants provided under the pilot project. Key features include:
Competitive grant system: grants will be awarded based on an evaluation process that follows the requirements outlined in applicable regulations.
Dedicated budget: a total of €300,000, co-financed by the European Regional Development Fund (ERDF), will be allocated for the pilot project in 2025.
Capacity-building and advisory services: entrepreneurs will receive guidance and training to improve the success of their crowdfunding campaigns, ensuring they achieve their funding goals.
Key beneficiaries and expected benefits
Eligible beneficiaries:
- Companies of any legal form, self-employed individuals, and SME owners.
- Must have a production or work center in Extremadura and a tax residence in Spain.
- Projects must involve new initiatives in the region and be financed through a crowdfunding campaign.
Expected benefits:
- Enhanced credibility: beneficiaries will attract private contributions more easily, thanks to the match-funding provided by the regional government.
- Expert guidance: access to professional advice will help entrepreneurs build stronger crowdfunding campaigns, increasing their chances of success.
- Financial support: the match-funding model will provide a boost to their projects, improving overall outcomes