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.
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.
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 BOURSIER.COM, 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.
IgG Antibodies to SARS-CoV-2 Acquired after Natural Infection are Maintained Beyond 12 Months
A seropersistence study shows that IgG antibodies generated after natural infection are maintained beyond 12 months. This study reveals that...
DIA Unveils the Group’s First Sustainability Plan
DIA Group has announced its sustainability plan. It is based on 15 lines of action grouped into three categories: environmental...
What’s Next, Inflation or Deflation? What Does it Mean for the Markets?
The credit markets should be freezing up and the stock market should be plunging from record-high valuations by that time....
Five Important Questions to Ask Before Investing in Gold
Before investing in gold, you should due your diligence in order to make wise choices. The question of whether your...
As Inflation Fears Deepen, Stablecoins Become Irresistible
With the consumer price index rising and the purchasing power of the U.S. dollar on the decline, people are seeking...
Featured7 days ago
Finlombarda Invests 1.5 Million in a Fund Promoted by P2P Lending October to Finance SMEs in Lombardy
Crowdfunding7 days ago
DeFi Projects Raised $200 Million in 2020 and $1 Billion since 2017
Africa7 days ago
Entrepreneurship: the Region Laâyoune-Sakia El Hamra Launches the Program RIYADA
Crypto7 days ago
Dirham Project: the World’s First Regulated Stable Currency