European equity-based crowdfunding market to top $2.3bn in 2020
The rise of the global crowdfunding industry started during the 2008 financial crisis, when banks cut back on loans to individuals and small firms, forcing them to search for alternative funding sources.
The crowdfunding platforms removed traditional banks from the equation and connected borrowers directly to lenders, offering an ability to invest in well-defined purposes. Many of them decided to invest in equity shares or profit-related returns.
In 2017, the European equity-based crowdfunding industry reached $1.16bn value, revealed the Statista survey. Over the next two years months, the market continued growing and hit $1.88bn worth in 2019.
The 2020 data show the transaction value of the European equity-based crowdfunding market rose by 22.3% year-on-year, while the market worth doubled compared to 2017 figures. According to statistics, the average funding per campaign jumped from $85,111 in 2017 to $115,271 in 2020.
The United Kingdom and the Netherlands are the leading European markets
Recent years have witnessed a steady growth in the number of funding campaigns in this segment of the European crowdfunding market. In 2017, there were more than 13700 successfully launched equity-based crowdfunding campaigns. By the end of 2019, their number jumped to 17400.
The recent data show the number of campaigns rose by 15.1% year-on-year, reaching over 20000 in 2020. In the next three years, the number of funding campaigns in the European equity-based crowdfunding market is expected to hit over 26300 or nearly double the 2017 figures.
Analysed by geography, United Kingdom represents the leading European equity-based crowdfunding market, expected to reach $834m transaction value this year. With $459m worth funding campaigns, the Netherlands ranked as the second-largest market in Europe. Sweden ranked on the third place with $229.4m transaction value in 2020. Finland and Germany follow with $132.6m and $104.5m, respectively.
