The crowdfunding sector in Italy raised €333 million in 2020 and grows by 75%

Starteed’s 2020 crowdfunding report notes growth in all modes of fundraising: lending (+75%), equity (+95%) donation and reward (+38%)

A better regulatory environment and greater professionalization of operators has driven the growth of crowdfunding in Italy, which has gone from a cumulative collection of $79 million (€65.6 million) in 2015 to over $933 million (€772.8 million) in 2020, of which $402 million (€333 million) (+75%) in the year just ended alone. This is noted in the industry report released last week by Starteed, a Turin-based crowd-company that develops solutions in the crowdfunding market, with the aim of providing customized technological infrastructure and specialized services for those who want to create more effective and transparent financial models.

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The lending crowdfunding sector is leading

Lending crowdfunding still dominates ($216.7 million (€179.5 million) collected in 2020, with a growth of +75% compared to the previous year), but equity crowdfunding ( $148 million (€122.5 million) and +95%) and donation and reward crowdfunding ($37.4 million (€31 million) and +38%) are also growing.

Starteed’s findings, at least as far as equity crowdfunding is concerned, appear higher than those of our observatory on equity crowdfunding. As far as we know, the difference should be due to the fact that Starteed also detects campaigns that are still open on 31/12 but which, in any case, have exceeded the minimum objective, while Crowdfunding Buzz considers only those campaigns effectively closed within the year.

Equity crowdfunding was negatively impacted by coronavirus-related uncertainty in the middle part of 2020, but still performed well in the end thanks to a strong increase in the supply of real estate market and investment vehicles, which mitigated the risk associated with investing in individual startups. The report found an important growth in donation and reward crowdfunding, although the majority of funds were raised by the GoFundMe platform, which being foreign, was not taken into consideration in Starteed’s study. Lending, on the other hand, does not seem to have suffered the effects of the pandemic, continuing its usual rapid growth and confirming its increasingly important role in financing SMEs as well as private individuals.

In donation and reward crowdfunding, the 5 platforms with the highest number of donations were Forfunding; Rete del Dono; Kendoo; Produzioni dal Basso and Eppela. In equity crowdfunding, the best results in terms of collection were obtained by Opstart; CrowdFundMe; Walliance; Mamacrowd and BacktoWork. In lending crowdfunding, the most successful were: Borsa del Credito; October; Prestiamoci; Soisy and Rendimento Etico. Of particular note is the propulsive thrust of real estate crowdfunding, which has made it possible to raise very high amounts in very short periods of time, both on the lending and equity crowdfunding sides.

According to Starteed, the risk factors for the growth of crowdfunding in 2021 are the stability of the Italian economy and the advancement of the offer by foreign platforms.

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