Italian Crowdfunding platforms: the 2024 statistics

The new ECSP regulation on crowdfunding has radically changed the landscape of crowdinvesting in Italy. The European ECSP regulation aligns with the regulation of equity crowdfunding and lending platforms, which were subject to different rules in Italy until 2023.

As a result, the number of platforms, particularly equity crowdfunding platforms, has shrunk significantly.

In addition, the new level of interest rates had its most visible effect in 2023, leading investors to demand higher returns, which entrepreneurs did not always accept. Therefore, fundraising times have increased, but the failure rate of fundraising has not increased significantly.

According to the Crowdinvesting Observatory at MIP, the School of Management of Politecnico di Milano, the overall capital raised by Italian companies through crowdfunding platforms from 2014 to June 2024 was € 1.3 billion. In particular, € 798 million was the capital raised through equity-based platforms (including minibond), and € 502 million through lending-based platforms. Capital raising continued to slow down, with € 302.35 million (-5.3%) raised in June 2023-June 2024.

*Capital provided by crowdfunding platforms in Italy (values in € million)*

According to the latest report, as of 30 June 2024, there were 33 authorised crowdfunding platforms in Italy, 50% less than the previous year. Among the authorised operators, 2 are new; 18 have applied to operate in securities placement, 9 in direct credit placement, and 6 in both segments. Italy ranks second in authorised portals in Europe after France (56 authorisations as of June 2024).

EQUITY

The equity raised in July 2023-June 2024 was € 106.55 million (-25.5%), with 161 campaigns, a significant decrease compared to the past.

Mamacrowd, Walliance, and Yeldo Crowd were the top platforms in terms of overall capital raised. CrowdFundMe and Mamacrowd published the highest number of campaigns.

Capital raised with the 1,134 successfully closed equity crowdfunding campaigns (values in € million).
The reference year is the year the campaign was closed

The average equity raised per campaign was € 194,233, with a 90% success rate. These numbers do not consider the real estate equity crowdfunding platforms, which, on average, raised € 1,184,833 per campaign. The average share of capital offered in exchange for the capital raised was 7.9%, with significant variability, with non-voting shares below a particular investment threshold.

Companies raising capital were primarily innovative start-ups (60%), innovative SMEs (12%), “traditional” SMEs (19%), and investment vehicles (9%). The median pre-money valuation was approximately € 2 million.

In June 2023-June 2024, 19 minibond placement campaigns were concluded on 2 portals for € 28 million (+34.5%). The leading platform in this area was Fundera.

LENDING

On the lending side, crowd platforms that lend to individuals have practically disappeared from the Italian market (they were acquired and absorbed by other financial players). Only Talents Venture remains.

As of June 2024, there were 15 lending crowdfunding platforms operating in Italy and 1 platform authorised in Spain.

Business direct lending platforms raised €167.82 million (+7.7%) in 515 campaigns. Real estate projects showed excellent growth. The average fundraising target was €282,212, and the average loan term was around 15 months. Almost all loans are bullet.

*Capital raised by business direct lending platforms (values in € million)*

The average annual interest rate offered to business lending increased to 9.82% in the first half of 2024.

The market leader over the last 12 months was Recrowd, with €73.60 million of capital raised and a historical total capital raised of €158.25 million. Trusters was the platform that published the highest number of campaigns in the period June 2023-June 2024 (82).

REAL ESTATE

Real estate crowdfunding has played a key role in supporting the crowd-investing market in Italy over the past 12 months.

Typically, these are short- to medium-term projects that aim to redevelop or build from scratch real estate properties with subsequent sale.

Crowdfunding plays an important role in boosting initial financing due to the speed of capital raising and the absence of collateral.

Projects financed in this segment between June 2023 and June 2024 raised € 191.56 million, 7.2% more than in the previous period.

The average annual yield offered increased in the first half of 2024 to 13.22% for equity offerings and increased slightly (10.01%) for lending offerings.