The crowdfunding market - France

The crowdfunding market has experienced significant growth globally, with a particular emphasis on its dynamic nature in the French domestic market. Globally, the market was valued at $1.25 billion in 2022 and is projected to grow annually at 14.5% to reach $3.6 billion by 2030, with China, the USA, and Europe holding substantial shares. In France, the sector achieved a 25% increase in the total amount raised between 2021 and 2022, reaching a striking €7023 billion by 2022.

The French market is primarily driven by loans (90% of funds raised), with the cultural sector attracting the majority of donation-based crowdfunding. Real estate crowdfunding is a burgeoning segment, marked by a 40.2% increase in amounts raised in 2022 and over a thousand projects funded since 2020. The market is relatively concentrated, with six platforms accounting for over half of the total collected amounts, and a decline in new platform approvals. The COVID-19 pandemic had varying influences on the sector, triggering an increase in solidarity campaigns and a short-term investment slowdown, but the market demonstrated resilience with the recovery of fundraising activities. Overall, French investors show a strong preference for loan-based crowdfunding, with a high concentration of activity in Ile-de-France and a notable focus on socially and environmentally impactful projects.

Trends in Participatory Finance: A Deep Dive into the French Market Dynamics

In recent years, crowdfunding has become a pivotal component of the French financial landscape, demonstrating a robust growth trajectory fueled by a diverse array of projects and enthusiastic investors. In France, this market is predominantly characterized by loans, with a staggering 90% of funds raised in 2022 channeled into loan-based crowdfunding. Donations, while a smaller slice of the pie at 4.5%, and investments at 6.4%, show the variegated nature of participatory finance in the country.

The crowdfunding segment in France has witnessed a remarkable compound annual growth rate of more than 90% in 2022, indicating the sector's rapid expansion within a relatively short period. In 2022 alone, the French market saw over 2,300 billion euros raised through crowdfunding initiatives.

One of the most notable areas of growth has been real estate crowdfunding, which has soared to over 1,600 million euros in 2022, an uptick surpassing 40% from the previous year. This specific market segment is booming, as evidenced by the financing of over 1,600 real estate projects in a single year. The focus largely remains on real estate transactions, with a significant emphasis on renovation and urban development projects.

The cultural sector, too, is a significant beneficiary of crowdfunding donations, raising upwards of 70 million euros. Investor behavior has been shaped not only by the types of projects available but also by the prevailing societal conditions. The COVID-19 pandemic, for instance, significantly influenced the sector. State-guaranteed loans via crowdfunding platforms emerged as a pivotal tool for businesses to maintain liquidity.

While platforms such as Wiseed leaned into business continuity plans to sustain operations during uncertain times, others like Lita.co waived commissions to encourage continued investment in impactful businesses. Moreover, the societal shift towards sustainability and social responsibility has been mirrored in the crowdfunding scene. A substantial number of over 60,000 projects bear a social or environmental imprint, further substantiating the market's alignment with contemporary values.

Despite the sector's promise and expansion, crowdfunding in France isn't without its challenges. For instance, the real estate segment, although resilient, has to reckon with the nuances of the development process, like obtaining permits and navigating appeals. Geographically, the Ile-de-France region leads in crowdfunding investments, accounting for roughly a third of the financed amounts, followed by Provence Alpes Côtes d'Azur and Auvergne.

Landscape of Leading Entities in the Crowdfunding Arena

The realm of crowdfunding has been marked by the presence of several standout platforms, each of which has etched its own distinct space within the market. Notably, these platforms serve a myriad of purposes, ranging from philanthropic endeavors to entrepreneurial ambitions. Here is a look at the main players that punctuate the crowdfunding ecosystem based on their contributions and distinguishing features.

Global Powerhouses

• GoFundMe: Known for its global reach and its predilection for personal fundraising, GoFundMe has emerged as one of the most recognizable names in the crowdfunding domain. Though its financial specifics are not disclosed in our reference material, the platform's wide-ranging influence is undeniable, particularly in the sectors of emergency funding, medical expense channelling, and charitable drives. It has fundamentally shifted how individuals seek financial assistance in times of crisis.
• Kickstarter: With an impressive track record of aiding creative projects to fruition, Kickstarter stands tall as a visionary force. It has become synonymous with the artistic and tech-savvy crowd, helping breathe life into thousands of innovations, films, music albums, and other creative pursuits. The platform is not just a conduit of funds but also a catalyst for community engagement and support for ideas that captivate the imagination.

French Front-Runners

• KissKissBankBank: This platform champions a diverse array of crowdfunding formats within France, catering to entrepreneurs, artists, and social causes. KissKissBankBank has positioned itself as a cradle for European innovation and cultural projects, supporting a wide range of initiatives from the initial sparks of community-sourced concepts to the full-blown ignition of impactful enterprises.
• Ulule: As one of France's premier crowdfunding platforms, Ulule has proven itself to be more than just a funding gateway; it is a launching pad for dreams. Specializing in reward-based crowdfunding, it has facilitated a significant volume of funds and propelled projects spanning across various spheres, including social impact, innovation, and culture. With records indicating a total fundraising sum that speaks volumes of its efficacy, Ulule exemplifies how strategic crowdfunding can empower a spectrum of endeavors.

Other Notables

• WiSeed and Lita.co: Also noteworthy in the French market are platforms like WiSeed, which tailors its services towards sustainable and green projects, thus aligning financial growth with ecological responsibility. Lita.co, on the other hand, has carved a niche in ethical investing, suspending commissions to bolster solidarity with impactful companies. 

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 12/10/2023

Summary and extracts

List of charts

• Crowdfunding market size
• Most active categories
• Most popular categories, by total amount invested (euros)
• Growth in amounts raised through crowdfunding
• Breakdown of funds raised through crowdfunding by type
• Selection rates and average costs by financing method (donation)
• Selection rates and average costs by financing method (loan)
• Selection rates and average costs by financing method (investment)
• Trends in the volume and structure of crowdfunding donations
• Trends in the volume and structure of crowdfunding loans
• Trends in the volume and structure of crowdfunding investments
• Breakdown of amounts collected by distribution channel
• Breakdown of participatory donation financing by sector
• Breakdown of participatory loan financing by sector
• Breakdown of participatory investment financing by sector
• Growth in amounts raised through real estate crowdfunding
• Number of real estate projects financed
• Breakdown of projects financed by type of operation
• Google Trends searches
• Platform segmentation by collection volume
• Number of platform approvals and cancellations
• Number of crowdfunding platforms by category
• Number of projects funded by type of player
• Average contribution by project category
• Number of projects launched by category