2.2 Target Market

TRRUE is developing a tokenised equity investment platform and at the stage of preparing for making application for a crowdfunding service provider (CSP) license from the Central Bank of Ireland (CBI), or potentially another EU regulator.2 The initial target market is therefore the European crowdfunding market, with plans to expand to the United Kingdom and other regions once operations have been successfully established in the European Union. When we refer in this White Paper to the conduct of business on an ‘international’, ‘international’ or other transnational basis, then, in so far as the business activities are subject to regulatory authorisation we mean the conduct of business where and as regulated

The international crowdfunding market was valued at USD $1.67 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 16.7% from 2023 to 2030.3 This market expansion is primarily driven by the increasing use of social media platforms for retail investment activities, which significantly boosts the visibility and demand for emerging projects.

Technological advancements in investment platforms are also contributing to market growth. The integration of Artificial Intelligence (AI) and machine learning technologies is revolutionising the way these platforms operate, enhancing their efficiency and effectiveness in connecting projects with potential investors.4

The European crowdfunding market has experienced significant growth in recent years, driven by a combination of technological advancements, evolving investor preferences, and supportive regulatory changes. The market, once regarded as a niche funding avenue for startups and small-to-medium enterprises (SMEs), has now emerged as a formidable sector within the European financial landscape..

In 2024, the market is predicted to benefit from continued market growth, as well as a more clear regulatory environment to enhance investor confidence:

Regulatory Environment The introduction of the European Crowdfunding Service Providers Regulation (ECSPR)5 has been a pivotal development, offering a harmonised legal framework across the EU. This regulation has increased investor protection, standardised operational requirements, and facilitated cross-border investment activities. As a registered VASP, the business will be required to apply to become a CASP under MiCA. The Board will finalise the MiCA licensing strategy in due course, as more details on the specific implementation requirements and licensing minimum standards of the relevant EU jurisdictions are made available.6

Market Growth The market has shown robust growth, with a significant increase in both the number and financial value of crowdfunding campaigns. This is expected to result in greater acceptance of crowdfunding among investors and businesses, and an expanding array of platforms offering diverse crowdfunding models such as equity, lending, and donation-based crowdfunding.

TRRUE will notify TRRUE Coin holders when a final decision is made on the EU jurisdiction in which it intends to seek CSP authorisation and will keep TRRUE Coin holders informed during the application process. As of the date of this White Paper, the TRRUE preference is Ireland, but, as with any application for financial services authorisation, decision making ultimately lies with the regulator. Accordingly, the possibility exists that TRRUE may require to seek CSP authorisation in another EU jurisdiction.