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.
If you want to find more about the crowdfunding sector in Italy and to read the latest financial headlines download for free teh Born2Invest mobile app. Our companion app brings you the latest market updates for you to stay informed.
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.
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 Crowdfunding buzz, 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.
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [++ KuCoin Affiliate Program Review]
This week, we answer the two questions on everyone’s lips — What do SJWs and e/accs have in common? And...
BIPV Boom: By 2032, Building Integrated Photovoltaics Will Be Worth Over $143B
The next moves by the European Commission and the trend toward a real estate stock composed of Zero Emission Buildings...
French Fintech Company Qonto Launches SME Financing in Italy
Qonto is expanding its financial solutions for SMEs and professionals in Europe, launching the option for companies in Italy to...
Trusters and Leone Investments Finally Receive Approval Under EU Regulation
After almost a month under the new EU Regulation, two platforms, including the historic Trusters launched in 2018 and the...
Coinbase Wallet Has a New Feature: Send Crypto via Web Link
The exciting part is actually in the small print: This is because Coinbase covers the fees for transactions via stablecoin...
Crowdfunding1 week ago
Recrowd, Real Estate Lending Platform, Finally Gets European Authorization
Impact Investing2 weeks ago
Green Bonds and Energy Transition Create ESG Opportunities for Investors
Markets4 days ago
Soybeans and Soybean Oil Appears to start a New Leg Down on the Charts
Fintech1 week ago
What Fintech Trends Will Mark 2024 in Latin America