The crowdfunding market - Italy

The global crowdfunding market, as of 2020, has been characterized by a robust growth trajectory amid various market shocks such as the COVID-19 pandemic. The market size was estimated at $1.67 billion in 2022 and is expected to grow at a CAGR of 16.7% from 2023 to 2030. The surge in crowdfunding activities, especially through social media platforms like Facebook, X, Reddit, Instagram, and LinkedIn, plays a significant role in driving this growth. Technological advancements, including the adoption of AI and ML, are additional growth facilitators. Europe is home to nearly half of the world's crowd investing platforms, with mature economies like the UK, Italy, France, and Germany hosting the majority, while the Baltic states like Estonia stand out for the number of platforms per capita. However, the US leads in investment volume with a 65% market share. Equity and lending are prominent segments in the crowdfunding market, with equity platforms accounting for nearly half and P2P lending for around one-third. The "other" segment, which includes cryptocurrency and collectibles, is also witnessing growth. The trend suggests increased integration of equity crowdfunding into the economy and a move towards loyalty, decentralization, and internationalization, forecasting a continuous expansion of the crowdfunding landscape.

Crowdfunding Dynamics and Trends in Italy

In recent years, the Italian crowdfunding market has been characterized by a dynamic interplay of factors influencing both demand and supply in the sector. As an emerging market, Italy has witnessed a remarkable influx of interest in various forms of crowdfunding, including equity, lending, reward, and donation-based platforms. From the demand side, equity crowdfunding campaigns on non-real estate platforms have seen capital inflows between 75 and 100 million euros, although there is an observed decline of around 11 percent from the previous period. Notably, real estate platforms have experienced a surge in resources, with funds raised increasing by up to 30 percent year-on-year. Despite some difficulties, this segment has demonstrated robustness, with lending platforms specializing in real estate also seeing an impressive increase in new loans, amounting to between 100 and 120 million euros, which is a jump of approximately 40 percent from the previous year. The investor landscape in the Italian crowdfunding market is largely dominated by males, accounting for about 85 percent. The age group primarily supporting equity crowdfunding is adults between 36 and 50 years old, suggesting that the market is buoyed by a more mature investor cohort.

On the supply side, crowdfunding in Italy operates as a direct funding channel, allowing projects to receive financial backing from numerous investors without going through traditional financial intermediaries. While donation crowdfunding is guided by altruism, reward crowdfunding has emerged as a pre-sale opportunity, often involving backers in product development. Equity crowdfunding, on the other hand, allows ordinary investors to become shareholders in unlisted companies. There is a significant concentration of companies involved in equity crowdfunding campaigns in regions like Lombardy, Emilia Romagna, Lazio, and Campania. Lombardy leads with between 40 and 45 percent of firms, followed by Emilia Romagna with over 10 percent. This geographic distribution aligns with the overall economic clout of these regions within Italy. The market has also seen structural shifts, with equity crowdfunding platforms licensed by Consob, the Italian financial regulatory agency, slightly declining in number to 48 from a previous count of 51. This decline may be attributed to market consolidation activities such as mergers and acquisitions, reflecting a maturation phase in the market. Despite the decrease in numbers, the platforms have become increasingly specialized, focusing on sectors like real estate, life sciences, energy, and impact finance. The Italian crowdfunding market has thus been a testament to innovation, adaptability, and resilience, with a particularly promising outlook for equity and lending.

Main Protagonists of Italy's Equity Crowdfunding Landscape

Italy's equity crowdfunding market has witnessed the rise of several notable platforms that have become key players in facilitating investments in startups, SMEs, and real estate projects. These platforms offer innovative solutions for budding entrepreneurs to access capital and for investors to diversify their investment portfolios. Below, we discuss some of the major platforms that are shaping the Italian crowdfunding ecosystem.

• MamaCrowd (Siamosoci s.r.l) Based in Milan and embracing the ethos of innovation since its inception in 2011, MamaCrowd stands out as a pioneering equity crowdfunding platform in Italy. It serves as a crucial bridge connecting ambitious startups and SMEs with potential investors. The platform specializes in curating investment opportunities that allow investors to acquire shares in the companies they believe in, thus democratizing the investment landscape. MamaCrowd's selection process is rigorous, ensuring that only projects with potential for substantial growth and impact make it to the funding stage. 
• Crowdfundme s.p.a With its headquarters in the financial hub of Milan, Crowdfundme s.p.a has been instrumental in matching promising companies with a community of eager investors since 2013. Recognizing the limitations of traditional financial circuits, Crowdfundme provides an alternative path for fundraising, underscoring its role as a crucial player in the nation's equity crowdfunding domain. It offers a diverse array of projects across various sectors, thus aiding investors in curating a diverse and innovative investment portfolio.
• Opstart s.r.l Opstart s.r.l is a comprehensive crowdfunding platform that emerged in 2015 in Bergamo. This platform ambitiously addresses the needs of the modern-day investor and entrepreneur by facilitating equity, debt, and lending crowdfunding. Its role as a fintech connector simplifies the funding process for startups and SMEs while offering intriguing investment alternatives to traditional funds. Opstart is a hub of financial creativity, contributing significantly to Italy's flourishing crowdfunding milieu. 
• Backtowork24 s.r.l:  A relative newcomer established in 2018, Backtowork24 s.r.l is quickly distinguishing itself as a leading equity crowdfunding platform. Located in Milan and supported by Intesa Sanpaolo, it operates with a mission to cultivate a symbiotic relationship between investors and small businesses seeking innovative financing solutions. Backtowork24 s.r.l encourages investments from both individual and professional investors, offering a variety of projects including real estate and tech ventures. 

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 20/12/2023

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