Figures released by the EC revealed that approximately £3.3bn was successfully raised through EU crowdfunding platforms in 2015, up from £1.26bn the previous year.

Jonathan Hill, EU Commissioner for Financial Stability, Financial Services and Capital Markets Union, said: "As part of our work to improve the funding conveyor belt for businesses, we are keen to support the development of crowdfunding models as a source of financing for entrepreneurs with bright ideas, start-ups and other SMEs.

“Our focus is on promoting best practice, appropriate investor protection and consistency of national regimes.

“We will continue to monitor market and regulatory developments closely."

The report said the average UK crowdfunding deal rose from £199,095 to £523,978 in 2015, while the amount raised by EU SMEs through equity crowdfunding platforms grew by 167% between 2013 and 2014.

In the present market only 41% of European SMEs currently perceive no limitations in their access to future financing, while only 60% of start-ups survive the first three years of activity.

The Commission recognised that successful crowdfunding can give founders proof of concept and attract the attention of larger firms.

However, the EC stressed the importance of national frameworks in encouraging the sector to grow.

For example, in the UK the Financial Conduct Authority has set no maximum limit on crowdfunding investment.

However, in Belgium investors are limited to approximately £790 each, and legislation proposed in 2014 is still being discussed.

Despite this inconsistency, the report claimed there is not yet a need for an overarching European framework for crowdfunding, though the Commission will meet with regulators twice a year to review the situation.