’s-Hertogenbosch, 7 June 2023 - On 6 June 2023, the Dutch Financial Market Authority (AFM) granted the ECSP (European crowdfunding) licence to sharefunding platform Broccoli. The green investment platform thus became an authorised financial institution and also has the youngest director of a financial institution in the Netherlands.
The licence represents a significant expansion for the green investment platform in terms of investor protection, transparency, operational processes and the supervisory role of the AFM and De Nederlandsche Bank, and provides access to the European market. Broccoli is the first and, for the time being, the only equity investment platform in the Netherlands that is fully focused on sharefunding with this European licence.
ECSP licence
The European Crowdfunding Service Provider licence was established by the European Union to protect investors and oversee the relatively new phenomenon of crowdfunding service providers. Local financial authorities, such as AFM, are responsible for granting this licence and monitoring compliance with the requirements for this licence. Every crowdfund service provider is required to have the same ECSP licence from 10 November this year. If parties do not have this licence, they are operating illegally.
Share-focus
Co-founder Wouter Hagoort 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.’
When you need funding as an entrepreneur, you talk to a bank or an investment fund. But in an economy where everything is focused on growth, traditional investors look mainly at profit maximisation. However, profit should not be the only criterion, according to Broccoli.
Better for investors and entrepreneurs
For both entrepreneurs and investors, the new licence is good news. Investors investing through a platform with the ECSP licence can be confident that the platform meets strict requirements on IT security, privacy, investor protection and information disclosure. In addition, the new licence gives more options for stock marketability. Thanks to the new compliance processes and development within the IT solution, investors with international ambition from across Europe can now easily invest through Broccoli.
Youngest director of a licensed Dutch financial institution
Hagoort (25) is immensely pleased with obtaining the licence. ‘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. With a great team and pleasant cooperation with the regulators, it is now official. The tightening of every conceivable process within our organisation has ensured that we have professionalised incredibly quickly.
Obtaining the ECSP licence from the AFM means that the company becomes a financial institution. The granting of this licence to Broccoli makes Hagoort the youngest director of a Dutch financial institution.
Good example follows good practice
Co-founder Derrick Neleman (46) 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 10 million euros 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’
About Broccoli
At Broccoli, we think it makes sense to invest in a sustainable world. That is why we mobilise growth capital for entrepreneurs who have the guts to really do things differently. For pioneers who build fairer food chains, make production processes more sustainable, fight food waste and help consumers worldwide with healthy and fair food.
Making the world greener and healthier, that’s what we’re all about at Broccoli. 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. *Broccoli. Grow together**.