The Colombian government enacted Decree 1357 (hereafter
the Decree) last July, which regulates crowdfunding platforms
in line with the international growth of the industry. This as
an attempt to bridge the gap between the supply of funds and
The Decree generally establishes that: (i) Colombian
entities offering crowdfunding services must be a) incorporated
as sole purpose stock corporations authorised by the
Superintendence of Finance, b) stock exchanges, or c) trading
systems; (ii) the fundraisers must act on their own behalf, for
their own benefit; and (iii) the funds must be used for
productive investment projects.
The Decree further limits the practice of Colombian
crowdfunding platforms to undertake crowdfunding activities via
the issuance of securities (known internationally as 'equity
crowdfunding'). Other types of crowdfunding, such as
peer-to-peer lending, rewards- and donation-based crowdfunding,
do not fall under the scope of this regulation.
Securities-based crowdfunding in Colombia requires the
investment in securities to be issued by the fundraisers.
Following international practices, the Colombian government
excludes the purchase of such securities from the public
offerings rules and the fundraisers from the qualification of
issuers registered with the National Registry of Securities and
Issuers (RNVE), and from the issuers' obligations.
The Decree defines the financial limits to fundraisers and
investors. Fundraisers wishing to finance their project or
start-up are subject to an approximately $782,000 cap, or $2.6
million if the investors are qualified. Likewise, non-qualified
investors can contribute up to 20 per cent of either their net
worth or their annual income, whichever the highest.
The Decree does not apply to Colombian residents that
participate crowdfunding initiatives undertaken by foreign
companies. However, according to the current regulation,
foreign crowdfunding companies must comply with the legal
regime applicable to the promotion of foreign financial