Market Insights Financial Capital Raising Digital Capital Raising

Crowdinvesting - Europe

Europe

The total transaction value in the Crowdinvesting market in Europe is forecasted to reach €0.78bn in 2024.
When looking at a global comparison, it is evident that the United Kingdom leads with a transaction value of €558m in 2024.
In Europe, Crowdinvesting in the Capital Raising market is gaining traction, with Germany leading the way in innovative funding opportunities for startups.

Key regions: Europe, Australia, Brazil, China, Israel

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Región

Comparación de regiones

Moneda

Analyst Opinion

The Crowdinvesting market in Europe is experiencing significant growth and development.

Customer preferences: In recent years, there has been a growing interest among European investors in alternative investment options, and crowdinvesting has emerged as a popular choice. This can be attributed to several factors. Firstly, investors are increasingly looking for higher returns on their investments, and crowdinvesting offers the potential for attractive returns compared to traditional investment options. Secondly, crowdinvesting provides individuals with the opportunity to invest in innovative startups and projects that they believe in, allowing them to support entrepreneurship and contribute to the growth of new businesses. Lastly, the transparency and accessibility of crowdinvesting platforms have made it easier for investors to participate and diversify their investment portfolios.

Trends in the market: One of the key trends in the crowdinvesting market in Europe is the rise of sector-specific platforms. These platforms focus on specific industries such as real estate, renewable energy, and technology, allowing investors to invest in projects that align with their interests and expertise. This trend is driven by the increasing demand for niche investment opportunities and the desire for investors to have more control over their investments. Another trend in the market is the emergence of equity-based crowdinvesting platforms. While debt-based crowdinvesting has been popular in Europe for some time, equity-based crowdinvesting is gaining traction. This is due to the potential for higher returns and the opportunity for investors to become shareholders in the companies they invest in. Equity-based crowdinvesting platforms provide startups and small businesses with access to capital and allow them to tap into a wider pool of investors.

Local special circumstances: The crowdinvesting market in Europe is diverse, with each country having its own unique characteristics. For example, in countries like Germany and the United Kingdom, crowdinvesting has gained significant traction due to favorable regulatory frameworks and a strong entrepreneurial culture. These countries have well-established crowdinvesting platforms and a large number of active investors. On the other hand, in countries like France and Italy, crowdinvesting is still in its early stages of development. This can be attributed to regulatory constraints and a lack of awareness among investors. However, with the introduction of new regulations and increased investor education, these markets are expected to grow rapidly in the coming years.

Underlying macroeconomic factors: The growth of the crowdinvesting market in Europe can also be attributed to several macroeconomic factors. Firstly, the low interest rate environment in Europe has made traditional investment options less attractive, leading investors to seek alternative investment opportunities. Secondly, the increasing availability of internet and mobile technologies has made it easier for investors to access crowdinvesting platforms and participate in investment opportunities. Lastly, the supportive regulatory environment in many European countries has encouraged the growth of the crowdinvesting market by providing legal frameworks and investor protections. In conclusion, the crowdinvesting market in Europe is experiencing significant growth and development. This can be attributed to customer preferences for higher returns, transparency, and the opportunity to support innovative startups. The market is characterized by trends such as sector-specific platforms and the rise of equity-based crowdinvesting. Each country in Europe has its own unique characteristics and level of development in the crowdinvesting market, influenced by local special circumstances and underlying macroeconomic factors.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.