Crowdfunding is still a popular way of financing projects and initiatives in the Netherlands. Recent figures show that 29% more money was raised in 2019 than in 2018. However, the goals of crowdfunding are about to change.
Simple and easy to use, the Born2Invest app provides you with the best insights, wherever, and whenever you need it. Access real-time quotes, breaking news and the latest business and finance headlines. Explore a wide range of dedicated sections with insightful articles, including crowdfunding, world news, lifestyle, technology, economy and more.
High revenues for crowdfunding in the Netherlands
Given the popularity of crowdfunding in the Netherlands, it’s no surprise that it’s still being used as a means of supporting new businesses, innovative projects, or fundraising campaigns. As a result, crowdfunding has even seen an increase, as figures from the research site crowdfundingcijfers.nl show. They say that $470 million (€424 million) were raised in 2019, an increase of 29% compared to 2018 when the website said $364 million (€329 million) had been raised.
Not only are revenues increasing, the number of projects that reach their target amount has also seen an increase. For the first time, more than 10,000 projects reached their target amount in 2019 alone. It shows that anyone who sets up a good campaign can achieve his or her target amount twice over. Indeed, in the past, there have been crowdfunding campaigns that sometimes exceeded their target amount as much as 1,000 times, as this Betway study of successful crowdfunding projects showed.
Social projects in demand
Of the 13,000 projects that ran a successful crowdfunding campaign in 2019, 63% were social projects with charities being quite popular. Yet these projects only raised a relatively low amount: the average amount was $2,200 (€2,000) per project, with a total amount of $17,9 million (€16.2 million). Such projects usually involved initiatives by local residents. Creative projects, from the art sector for example, also made a profit, with a total amount raised of $10,9 million (€9.9 million), and an average amount per project of $12,100 (11,000 euros).
Most of the record proceeds in 2019 went to start-ups simply looking for capital to start with. Two great examples being a city brewery in Sittard or a cat cafe in Utrecht, both of which worked out to be very successful ideas. On average, they raised $164,000 (€148,000), with a total amount of $429 million (€387.1 million), or 91% of the total proceeds in 2019.
Crowdfunding for personal causes is on the rise
It is becoming increasingly common for people to run crowdfunding campaigns for personal matters, for example, to pay for a new car or for a purchase of a new house. On average, people raised $8,800 (€8,000) in 2019, with a total of $12 million (€10.8 million). There are even workshops organized on how crowdfunding can work for you.
A whole new economy seems to have emerged in the field of crowdfunding. The Dutch are making more and more use of it and there’s great growth in it, especially for starting entrepreneurs. The great result of this is that it’s becoming clear that you don’t always have to go to a bank to start your business.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in nieuws.nl, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
Jefferies unveils the list of the most promising biotech companies for 2021
The biotech sector was one of the sectors which developed strongly thanks to the pandemic. Biotech companies were in the...
Luxembourg might soon legalize recreational cannabis
The legalization of cannabis is a hot topic currently debated in Luxembourg. Some officials are in favor, while others think...
The backdoor Roth IRA: How to make it work for fou
The Roth IRA can offer some very unique tax advantages, but the gripe many people will have is, “I make...
Loan and impact crowdfunding emerges stronger from the crisis
The coronavirus crisis did not impact in a negative way the crowdfunding sector, but it did have an impact. Investors...
From FinTech to Embedded Finance
Any business can incorporate FinTech services and gain additional profits by capitalizing on the loyalty of its customer base. Think...
Cannabis5 days ago
How the regulation of medical cannabis in Brazil has developed
Crypto7 days ago
Why the development of TenX might be hopeless
Biotech7 days ago
Innitius raises €1.3 million to further advance its Fine Birth algorithm
Featured7 days ago
Kyma Investment Partners, Andrea Rangone and Stefano Mainetti launch the investment vehicle KITT