Mapping EU markets and events study : executive summary
This report considers key trends in the European crowdfunding market during 2013 and 2014, encompassing a variety of funding models, including (but not limited to) loans, equity and rewards. Data mapping platforms and the ‘projects’ supported by these platforms was used to quantitatively plot market developments over time throughout the European Union (EU). This data was also used to consider market trends before and after national regulatory events in three markets within the scope period – France, Italy, and the UK. 510 platforms were identified as operating in the EU in the scope period, of... which 193 platforms contributed sufficient, eligible time-series data on project activity. The UK had the largest number of platforms, accounting for over a quarter of the EU total, with 143 platforms, including 45 participating platforms, and accounting for over 90% of total capital raised by participating platforms or €2.0 billion. The UK market is followed by France (77 platforms and 25 participating platforms), Germany (65 total and 22 participating platforms), the Netherlands (58 total and 25 participating platforms) and Italy (42 total and 12 participating platforms). Crowdfunding projects were identified in every Member State in the EU during the scope period. Eligible project-level data evidenced a total of €2.3 billion successfully raised for 206,908 ‘projects’ in 2013 and 2014, where either the ‘project’ was located in the EU or it was supported by a platform located in the EU (together defined as ‘in-scope’ projects). While coverage varies significantly between Member States, the five largest markets by total amounts raised were France, Germany, the Netherlands, Spain, and the UK. Analysis of trends in crowdfunding activity before and after national regulatory events in France, Italy and the UK indicated a diversity of regulatory environments and approaches (such as the relative development of the markets at the time of regulation, the level of industry consultation and the nature of pre-existing regulatory frameworks). As a result, the early effects on trends in market activity are complex and varied. All three Member States have, however, either undertaken or proposed further policy initiatives following the regulatory event. This suggests that regulatory events have supported broader policy momentum in relation to crowdfunding providers and this market.