In the nine months of 2020, crowdfunding campaigns in Italy have collected $67 million (€57 million), a figure that is not only 26% more than the same period of 2019, but is only $9.4 million (€8 million) from last year’s total of $76 million (€65 million). In the third quarter, the rate of the collection was practically identical to the same period last year, with 34 operations (same number as 2019) and $21.5 million (€18 million) collected compared to $20 million (€17 million). This indicates that the acceleration occurred in the first half of the year with $45.8 million (€39 million) collected against $33 million (€28 million) collected, which largely coincides with the lockdown.
Furthermore, the reduction in the average number of participants in a campaign, from 137 to 119, in a difficult moment for the economy and personal finances, is counterbalanced by an increase in the average individual investment (ticket) from $3,880 to $5,500 (€3,300 to €4,700 euro).
However, there is also an evolution on the side of fund applicants. First of all, the growth in the average size of the campaigns, from $511,000 to $658,000 (€435,000 to €560,000), as the increase in total funding has been accompanied by a very slight decline in operations, 101 against 103. In addition, the weight of the larger campaigns has increased. In those above $587,000 (€500,000), 28 applicants collected more than $49.3 million (€42 million) against $377.7 million (€321.5 million) collected by 27 entities in 2019.
Read more about the evolution of the equity crowdfunding sector in Italy and find the most important financial headlines with our companion app Born2Invest.
Equity crowdfunding in Italy by sector in Q3 2020
The other category in strong growth is that of investment vehicles, practically funds that in turn invest in innovative companies, which have almost quadrupled the collection, from $3.88 to $15.3 million (€3.3 to €13 million), distributed on eight vehicles (of which Fin-Novia alone has collected $8.8 million (€7.5 million), from the four existing vehicles in 2019.
It is very likely that the more difficult and uncertain economic environment tends to reduce the risk appetite of investors, to whom these vehicles offer the opportunity for greater diversification.
The trend towards diversification also manifests itself among intermediaries, i.e. platforms. Currently, there are 15 of them, but seven of them (less than half, therefore) account for 96% of the 2020 collection.
Equity crowdfunding platforms and their focus
This is the picture of Italian crowdfunding that emerges from the last panel of the Milano Finanza Digital Week, which ended last October 1st, and dedicated to the prospects of the investment spread through the equity crowdfunding platforms and their specificities.
The data were presented by Fabio Allegreni, CEO of Edibeez, publisher of Crowdfunding Buzz, according to which the collection for the whole of 2020 may not reach the $117.5 million (€100 million) initially planned, but will in any case be significantly higher than 2019, and then accelerate further in 2021.
During the panel, Tommaso Baldissera Pacchetti founder and CEO of CrowdfundMe reported that the platform has increased volumes by 144%, while Giacomo Bertoldi, founder of Walliance, specified that the success of real estate crowdfunding is also due to the possibility it offers to banks and other lenders of real estate groups to reduce their exposure and therefore their capital needs.
Among the platforms, several of them have been created recently and above all they are aimed at particular types of investments and investors. One example is Ecomill, founded by Chiara Candelise, dedicated to financing projects in the field of renewable energy. “The intent is to provide less risky investment opportunities with less uncertain returns” explained the founder, who sees a good opportunity for development in the advent of Technical Energy Communities, basically local energy purchasing groups, able to provide producers with stable basins of demand.
Different is the case of Doorway, basically a club deal platform, since for each campaign it creates a separate vehicle and is a closed system where to join the campaigns you must be admitted after an examination of your investor profile. “This is also to improve investor control of the company’s performance,” explained Antonella Grassigli, CEO and Co-Founder of Doorway.
Finally, it is worth mentioning Lita.co, a specialized platform on impact investing, i.e. the financing of initiatives with a social background and/or devoted to environmental sustainability, two factors that are increasingly important in the definition of investment strategies of even the largest asset managers.
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.
Roche signs its new diabetes business manager in Spain to Isdin
The company Roche Diabetes Care Spain, part of the Swiss pharmaceutical group, has appointed Josep Maria Vallmajó to hold the...
Major reasons why your website might not be attracting customers
In 2016, the number of business websites had almost doubled from 900 million to nearly 1.7 billion. Whatever your marketing...
Savills IM refinances two Italian assets with one of the first green loans in Italy
One of the first green loans in Italy will refinance the retail park in Fidenza (Parma) and the U4 office...
4 tips to market your small business locally
Whether you’ve recently started a small business or have pivoted your sales tactics for your company because of COVID-19, you’re...
Bitcoin revolution by integration with PayPal
The integration of Bitcoin with PayPal is probably one of the most important news for the entire crypto industry in...
Africa5 days ago
Why countries in southern Africa could become leaders in the cannabis sector
Featured6 days ago
How the coronavirus pandemic impacted the German Fintech sector
Featured6 days ago
Why is the stock market up?
Featured6 days ago
What’s the problem with the Dow Jones? Maybe it’s overvalued