The summer months are, at least in Italy, when all activities slow down abruptly. Does this also apply to equity crowdfunding investments? And what is the trend compared to the previous year?
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Funding increases, but fewer startups and SMEs funded
The summer months (July and August) are boosting investments with equity crowdfunding in Italian startups and SMEs, so much so that overall funding (14.5 million) has already surpassed that of the entire first quarter of 2022 (13.9 million). The comparison of July and August this year with the same months of the current year (12.6 million) also marks a positive result.
But, analyzing more deeply, the signs of distress already reported moreover also by the Milan Polytechnic’s observatory on crowdinvesting remain. In fact, the number of funded companies is lower, both compared to Q2 2021 (20 vs. 26) and Q1 2022 (21 vs. 34).
The analysis net of million-dollar campaigns
It should be noted, however, that in July/August 2021, 6.3 million had been raised by four millionaire campaigns, while, in the same two-month period of 2022, there were still four millionaire campaigns but with a total raising of 9.2 million, of which one (Atiu on Crowdfundme) raised 5 million alone (the other three, FranklyBubble, Delivery Valley and Blowhammer raised on Mamacrowd).
In addition, the four million-dollar campaigns of Summer 2022 all raised with the crucial contribution of institutional investors (Azimut invested 1 million in each of the 3 campaigns funded on Mamacrowd, and of Atiu’s 5 million at least 4 came from “noncrowd” investors).
So, net of the million-dollar campaigns, total funding in the summer 2022 two-month period is 5.3 million less than the 6.3 million in the same two-month period in 2021. Moreover, the 16 non-million dollar campaigns raised more in 2022 than the 22 in 2021: 331 thousand euros compared to 286 thousand euros.
Equity crowdfunding platforms
Finally, one last interesting figure is the number of platforms on which campaigns were submitted: while there were 12 platforms in the 2021 summer two-month period, there were only half as many in 2022. A figure that confirms the strong concentration of the market during 2022.
“Summer” raising of startups and SMEs with equity crowdfunding during July and August 2022 increased both compared to the same two months in 2021 and proportionally compared to Q1 2022.
There is, however, a reduction in the number of successful campaigns and, therefore, an increase in the average collection, both considering “millionaire” campaigns and excluding them. This is a figure that would seem to testify to an increase in the average quality of the offer, which, while reducing its numerosity, increases its attractiveness to “sophisticated” investors.
The reduction in numerosity, however, may also have been caused by the concentration of active platforms: compared to last year, many platforms cannot/do not stay in the market.
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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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