Crowdfunding in Europe: An Overview of the Regulations and Platforms Driving New Financing Models

by Joséphine de Chazournes,  Lauren Hawkins, November 2, 2015
Industry Trends
EMEA

Abstract

Crowdfunding, a global and thriving industry that has emerged as an alternative to traditional bank lending practices, is experiencing a unique evolution in Europe.

Three drivers are advancing the crowdfunding sector in Europe:

  • Newly implemented regulation.
  • Dozens of platforms entering the market.
  • A wide range of technology-based tools and services facilitating the participation of institutional investors.

In the report Crowdfunding in Europe: An Overview of the Regulations and Platforms Driving New Financing Models, Celent focuses on the most active crowdfunding markets in Europe (the United Kingdom, France, Italy, Spain, and Germany) to provide an understanding of its characteristics and trajectory.

Crowdfunding is broadly defined as non-bank, tech-driven, online platforms connecting lenders/investors and borrowers. In some geographies, crowdfunding is used synonymously with marketplace lending or peer-to-peer (P2P) lending.

Crowdfunding has become a viable means for consumers and small and midsize enterprises (SMEs) to receive financing. In the last few years, it has attracted institutional investors who, with the help of technological tools and services allowing them to operate at scale, are more actively participating in crowdinvesting and crowdlending to get exposure to this new asset class.

“The creation and implementation of regulation, whether country-specific or at the European Union level, will be important if crowdfunding is to become a mainstream means of financing for individuals and SMEs,” says Lauren Hawkins, an analyst with Celent’s Securities and Investments practice and coauthor of the report. “With that said, the rapid flow of institutional money and the fast-paced adoption of innovative technological practices will likely be the greatest determinants of the industry’s evolution in Europe in the near future.”

This report seeks to:

  • Outline industry regulation and its applicability for crowdfunding platforms, lenders/investors, and borrowers.
  • Identify the major equity and loan-based crowdfunding platforms in Europe.
  • Highlight the trends and opportunities that will shape crowdfunding in Europe.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

2

Introduction

3

Regulation in the European Union

6

 

United Kingdom

7

 

Spain

8

 

Italy

9

 

France

10

 

Germany

10

Major Crowdfunding Platforms in Europe

13

Key Trends and Developments

19

 

Institutional Investing

19

 

Securitization

19

 

Technology and Innovation

21

Conclusion

25

Leveraging Celent’s Expertise

26

 

Support for Financial Institutions

26

 

Support for Vendors

26

Related Celent Research

27

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