CrowdFundMe Raises €27 Million in 2021 and Achieves Positive Ebitda

CrowdFundMe S.p.A., a crowd investing platform listed on the Italian Stock Exchange, during 2021 recorded a significant increase in the collection of capital, which grew to $31.3 million (€27.5 million), an increase of 58% in 2020 $19.8 million (€17.4 million) and 175% in 2019 $11.4 million (€10 million).

Average funding also grew, reaching $826,000 (€727,000) compared to $583,000 (€513,000) in 2020 (+41.6%) and $517,000 (€455,000) in 2019, progress that indicates a clear consolidation of the platform’s ability to attract capital. The growth dynamic is also confirmed by the fact that, during the first half of 2021, the company claims to have achieved positive Ebitda for the first time $31,700 (€27,890), compared to the first half of 2020 in which Ebitda was negative for -$363,778 (-€320,022). These results, according to the company, were possible thanks to the ability to optimize the cost structure, as well as the increase in CrowdFundMe’s investor base, which exceeded 10,000.

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The projects launched increased from 39 in 2020 to 46 in 2021

In addition, the number of investments also grew significantly, rising to 6,316 against 4,735 in 2020 (+33.48%), as did the average investment – from $4,187 (€3,684) to $4,958 (€4,363) (+18.4%).

The projects launched increased from 39 in 2020 to 46 in 2021, in line with the company’s strategy, based not so much on the quantity of campaigns, which are still growing, but on their greater incisiveness in terms of volumes of capital invested. A concrete example is Global Tech Ventures, a holding company that invests in the best international tech and digital companies, whose fundraising ended at over $4.2 million (€3.7 million) thanks to 130 investors. Or Biogenera, a biotech company that raised more than $3.2 million (€2.8 million) from 643 partners.

The data reported by CrowdFundMe, clearly show how crowd investing is establishing itself as an increasingly reliable alternative finance tool to build a diversified portfolio, based on the real economy.

Tommaso Baldissera Pacchetti, founder and CEO of CrowdFundMe, wants to underline that “the numbers of 2021 indicate that our path of growth and consolidation in the market continues, a trend that has been going on for a few years now. We are proud of our work that has led to incredible results, raising 27.5 million euros in the space of 12 months with an audience of over 10,000 investors and an average investment of 4,363 euros. Numbers that show how, even in an extremely delicate context due to the continuation of the Covid-19 pandemic, Crowdinvesting has become a fundamental tool for startups and SMEs that need to raise capital. On the investor side, on the other hand, we are witnessing a growing prospect of monetization of alternative finance, both through stock exchange listings and the use of electronic bulletin boards. In the last three years, several CrowdFundMe issuers have become real success stories, such as CleanBnB and i-RFK that have concluded IPOs. Or Winelivery, first among Sole 24 Ore’s “Growth Leaders 2022″, thanks to a 303.73% increase in turnover, from $127,000 (€112,000) in 2017 to over $8 million (€7 million) in 2020. In 2022 we do not want to stop and we will aim to further strengthen our activities and evaluate possible expansions into new lines of business, such as Lending Crowdfunding.”

Enterprises, investment vehicles, minibonds, and real estate

According to data from the Crowdfunding Buzz observatory, CrowdFundMe’s largest contribution to funding in 2021 is related to entrepreneurial projects, which raised $18.6 million (€16.4 million) (it had been $13 million (€11.5 million) in 2020), followed by investment vehicles, which raised $6.9 million (€6.1 million) compared to $3.6 million (€3.2 million) in 2020.

But the platform reports that it also successfully brought in four minibonds for a collection of more than $4.9 million (€4.3 million), attracting both retail investors (with assets over $284,000 (€250,000)) and professional investors, as well as having launched two real estate campaigns that raised a total of $864,000 (€760,000) thanks to more than 160 investments.

Electronic Bulletin Board

Last year, CrowdFundMe also launched CFM Board, the electronic bulletin board for the exchange of company shares, on which investors who have purchased units or shares of CrowdFundMe issuers, in capital increase, can post offers to resell them, thus monetizing their assets. In 2021, 2,078 sale announcements and 3,010 purchase expressions were recorded.

According to what the portal reports, “the synergy between CFM Board, minibonds and Real Estate campaigns increases the liquidity of the instruments subscribed through CrowdFundMe, favoring a turnover mechanism: investors can therefore monetize even in the short to medium term and reinvest profits in the new opportunities offered by the portal.”

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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.

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