Why Upstone Recorded a Decline in Fundraising in 2023

According to a press release, Upstone, the crowdfunding platform, recorded a drop in collections in 2023 compared to 2022, a year which saw record collections.

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Difficult economic climate affects Upstone’s collection

According to the platform, drops in the value of SCPI shares have led to reluctance on the part of investors in the real estate market. But the real estate crisis and the blockage in the construction sector have probably cooled many investors.

As a result, the cumulative collections of Upstone and Immocracy, its sister platform, reached a total of €16.82 million, a decline of 20%. Despite this drop, the platforms declare the financing of 36 projects in 2023, reaching a total investment amount of 122 million euros since their creation.

Reimbursements larger than collection in 2023

In 2023, Upstone thus repaid more than it collected, redistributing €15.26 million to its investors. Many projects were repaid in 2023, including “Les Chalets du Paradis Blanc,” a project of three chalets in Chamonix which generated €1.06 million in 18 months with a return of 12%.

Despite a difficult economic climate, Upstone is counting on recently obtaining European approval from PSAN to continue its development and will continue to focus on real estate development, property dealer operations and mortgage portage. In a context of inflation rates higher than the rates for secure products, increased competition in the real estate crowdfunding market, and the slump in the stone market, the platform therefore wishes to explore new forms of financing.

Real estate crowdfunding, although innovative in financing real estate projects, faces significant challenges during market downturns. The scarcity of buyers, imposed by the double effect of the drop in rates and the tightening of the Pinel law, has had a strong impact on the projects of developers and merchants. Investors must therefore remain even more cautious during this period.

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(Featured image by moerschy via Pixabay)

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First published in ideal investisseur.fr. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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