Law no. 102/2015, of August 24^th 2015, was published, regulating crowdfunding in Portugal.

Until now, the regulation of crowdfunding in Portugal was at a very early stage. It is expected that the definition of a legal regime for crowdfunding, will contribute to the economy development, especially with in the startup companies universe.

Crowdfunding could be defined as the type of financing of entities or its activities or projects, through Internet based platforms, from which they raise monetary contributions from one or several individual investors.

The present Law establishes four types of crowdfunding:

• Donation-based crowdfunding: the financed entity receives a donation, regardless the delivery of a non-monetary compensation;
•  Reward-based crowdfunding: the financed entity is forced to present the product or service financed, in return for the funding received;
•  Equity-based crowdfunding: the financed entity returns the funding received through the distribution of dividend, profit sharing or allowing a participation in the equity capital;
•  Lending-based crowdfunding: the financed entity returns the funding received through the payment of interests previously established.

 Please note that each offer displayed on the platforms of donation-based or reward-based crowdfunding cannot raise a value higher than ten times the total amount of the activity financed.

On the other hand, the offers displayed on the platforms of equity-based or lending-based crowdfunding, are subject to a limit to be defined by the Portuguese Securities Market Commission.

The Portuguese Securities Market Commission must approve the necessary regulatory standards within 90 days after the publication of the Law.

The text of Law no 102/2015 is available on the following link: Law no 102/2015