Crowdinvesting (a subset of crowdfunding that allows both individuals and institutional and professional investors to join, through an enabling Internet platform, the collection of resources for an entrepreneurial project) continues to grow at record rates in Italy.
In the last twelve months, funds disbursed amounted to $451 million (€391 million), bringing the total (data updated to June 30th, 2020) to $1.04 billion (€908 million), almost double the $597 million (€517 million) of last year, when the numbers had already doubled year on year, both on the equity and lending front.
If you want to find more details about the crowd-investing market in Italy and to read the latest business news in the world, download for free the Born2Invest mobile app.
In terms of volume, Italy lags behind other European countries
However, even though Italy’s growth rates are in line with the rest of Europe, there remains a large gap in terms of volumes. That is according to the results that emerged from the 5th Italian Report on Crowdinvesting carried out by the Observatory of the School of Management of the Polytechnic University of Milan presented on July 21st. During the virtual event, three panels were presented, dedicated respectively to equity, lending, and real estate.
“Market funding and investment flows do not seem to have been impacted by the crisis, and indeed – in some respects – crowdinvesting has been re-evaluated as a ‘rapid’ source of liquidity for businesses, in the face of the slowness of public and banking bureaucracy,” the report highlighted.
The Equity crowdfunding sector
Looking at the online raising of venture capital, in the last 12 months, the equity crowdfunding has raised $88.4 million (€76.6 million) (+56% compared to the previous 12 months) for a total of about $183.4 million (€159 million). 42 portals were authorized on June 30th, 2020 with 193 campaigns in the last 12 months alone out of a total of 595 and an average collection target of $222,088 (€192,481) for non-real estate projects and $928,725 (€804,914) for real estate.
Looking at the platforms that operate in this segment, Mamacrowd is at the top of the ranking with $39.17 million (€33.93 million) collected in total in its campaigns, followed by Crowdfundme, which rises to first place if we consider the collection in the last 12 months, equal to $15.91 million (€13.78 million).
The crowdfunding lending sector
With $362 million (€314 million) collected in the last year, lending crowdfunding reached $867 million (€749 million). Specifically, loans to individuals (consumer lending) reached $473.3 million (€410 million) ($155.4 million (€134.6 million) in the last year) while those to businesses (business lending) reached $391.4 million (€339 million) ($207.4 million (€179.6 million) in the last year).
Among the 6 platforms that operate in lending to private individuals, thanks to funding from foreign institutional investors, Younited Credit ranks first with $377.6 million (€327 million) disbursed $127 million (€110 in the last 12 months). In lending to businesses (segment in which 11 platforms operate) Credimi Futuro, Borsadelcredito.it and October are on the podium, with a total cumulative volume of $391.6 million (€339.2 million), of which $207.3 million (€179.6 million) were added in the last year.
The exploit of real estate crowdfunding
With $22.5 million (€19.5 million) collected from equity platforms and $33.7 million (€29.2 million) from lending portals, real estate crowdfunding was up 185% on the previous period. The number of players continues to grow with 10 dedicated active platforms (there were 6 in 2019 and only 2 in 2018).
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 WE WEALTH, 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.
22 Million Euros and New Investors for Finleap Connect
Finleap Connect had ventured into other European countries early on. Specifically, the Berlin-based company is active in France, Italy and...
Dakhla: a New Project for the Valorization of Pelagics
The Department of Maritime Fisheries continues the implementation of the development plan of small pelagic fisheries in the South Atlantic,...
Gold’s 15 Count: How Low Can it go Next Week?
This week, the FOMC has “injected” an additional $54.20 billion dollars of “liquidity” into the financial system. This is far...
A Stock Market Correction Appears to be Underway
We note the huge rise in money supply although not in our opening piece that looks at the Fed its...
Roche is Awarded the Distribution of Reagents in Soria for Two Million Euros
Roche will be the company to distribute reagents in Soria. According to the budget application, the amount for the supply...
Featured7 days ago
The Fintech Ecosystem in Colombia Exceeds 322 Companies
Business7 days ago
Cybersecurity Rising Among America’s Infrastructure Priorities
Biotech6 days ago
Genomcore Finalizes its Entry into the United Kingdom after Increasing its Turnover by 73% in 2021
Crowdfunding7 days ago
Valsabbina Bank and Siav Purchase 25% of MyCreditService