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The health crisis has caused donations to skyrocket on crowdfunding platforms

In 2020, the proportion of donations without rewards has exploded, thanks to the pools set up for healthcare personnel or companies in difficulty, according to the 2020 barometer of crowdfunding in France. For the “Health, scientific research” category, the volume of donations increased from $3.28 million (€2.7 million) in 2019, all participative financing combined, to $18 million (€15 million) in 2020.

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The COVID-19 pandemic has caused a surge in donations on crowdfunding platforms. In 2020, more than $1.2 billion (€1 billion) were collected via crowdfunding platforms in France, such as Kiss Kiss Bank Bank or Ulule, which allow projects to be financed by donations from Internet users or interest-bearing loans, according to the 2020 crowdfunding barometer, unveiled by Financement Participatif France (FPF) and the Mazars law firm.

Between 2019 and 2020, the volumes collected increased by 62%, compared to a 56% increase between 2018 and 2019. “One billion euros of financing was reached in 2020. This is an important step in the growth that the crowdfunding sector is experiencing, driven by a ‘transparent, local, digital’ DNA in line with expectations,” according to the report.

Lending platforms raised $899 million (€741 million), up 46% compared to 2019. However, it is the donation sites that recorded the strongest growth, with an increase of 175% over one year to reach $265 million (€218.5 million) collected in 2020 on digital platforms, compared to about $97 million (€80 million) the previous year.

Read more about the crowdfunding sector in France and how donations exploded thanks to the pandemic, with the Born2Invest mobile app. Our companion app brings you the most important finance news in the world so you can stay informed.

Unrewarded donations are exploding

This amount is mainly driven by donations without reward, rising from $31.7 million (€26.1 million) collected in 2019 to $177 million (€146 million) in 2020, thanks in particular to the pools set up for healthcare personnel or companies in difficulty, in the context of the COVID-19 pandemic.

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The report mentions in particular the example of an operation aimed at delivering more than 12,000 meals “to healthcare workers on the front line of the fight against COVID-19”, after the first containment was set up in France. “This project was the first of a larger Stronger together operation which made it possible to finance 190 solidarity projects in 2020 via $1.94 million (€1.6 million) collected,” the study specified.

The profile of the funders

For the “Health, scientific research” category, the volume of donations increased from $3.28 million (€2.7 million) in 2019, all participative financing combined, to $18 million (€15 million) in 2020. Donations in the “Humanitarian and Solidarity” category rose from $14.3 million (€11.8 million) to $62.8 million (€51.8 million).

In addition, the report established the profile of funders in 2020. Funding comes mainly from the Île-de-France (31.99%), Auvergne-Rhône-Alpes (11.71%) and abroad (11.02%). They are 80% men and 20% women. Concerning donations, the average age, 43 years, remains stable.

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(Featured image by Rodrigo Kugnharski via Unsplash)

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First published in BOURSIER.COM, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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J. Frank Sigerson is a business and financial journalist primarily covering crypto, cannabis, crowdfunding, technology, and marketing. He also writes about the movers and shakers in the stock market, especially in biotech, healthcare, mining, and blockchain. In the past, he has shared his thoughts on IT and design, social media, pop culture, food and wine, TV, film, and music. His works have been published in Investing.com, Equities.com, Seeking Alpha, Mogul, Small Cap Network, CNN, Technology.org, among others.