The crowdfunding and crowdinvesting market in Italy is going through a transitional phase, characterised by significant challenges and new opportunities for industry players and investors. The data emerging from the publication of the 9th report of the Crowdfunding Observatory of the Politecnico di Milano, presented on 22 July in Milan, speak of a new contraction in the last year, following the slight drop recorded the previous year. Recent reductions in fundraising and the rationalisation of operating platforms require adaptation to new regulations, but at the same time open up space for innovation and growth. Investors still find attractive returns and diversification opportunities, while operators can take advantage of increased transparency and updated regulations to strengthen market confidence and attract new capital.
Market Performance in the Last 12 Months
In the last 12 months, total crowdinvesting inflows amounted to EUR 302.35 million, a decrease of 5.3% compared to the previous period. The total cumulative value since crowdinvesting was introduced in Italy has reached EUR 1.3 billion, excluding platforms that operate mainly offline or lend to individuals. This decline reflects an evolving market, where several players have closed down or are awaiting the new authorisations needed to operate under Regulation (EU) 2020/1503, which has become the regulatory reference for all European operators.
New Regulations and Authorisations
The new European ECSP regulation, recently complemented by national legislative measures and Consob and Bank of Italy regulations, has led to a rationalisation of operating platforms. As of 30 June 2024, 33 Italian platforms were authorised, down from 66 last year. Of these, many were inactive, and now the market sees only operators with the necessary authorisations, including two new players and several authorised operators for the placement of securities, direct loans or both.
Equity Crowdfunding Campaigns
In the equity crowdfunding segment, total funding in the last 12 months amounted to EUR 106.53 million, a decrease of 25.5 per cent compared to the previous period. This decline was particularly noticeable in non-real estate projects, which recorded a drop of 32.6 per cent. Despite the decline in new campaigns, the success rate remains high at around 90%. SMEs, both innovative and traditional, and investment vehicles continued to dominate the market, while innovative start-ups dropped to 43% of issuers. The average target amount for non-real estate projects was EUR 194,233, while for real estate projects it was EUR 1,184,833.
Minibonds and Direct Loans
The minibond segment saw a significant increase, with 19 completed campaigns on 2 portals and total funding of EUR 28 million, a 34.5% increase over the previous year. This brings the historical total to EUR 120.02 million. Platforms active in direct lending to businesses raised EUR 167.82m, an increase of 7.7% year-on-year. The average annual interest rate for direct loans rose to 9.82% in the first half of 2024.
Real Estate Crowdfunding
Real estate crowdfunding continues to play a crucial role in the Italian crowdinvesting market, with projects raising €191.56m over the past 12 months, a 7.2% increase over the previous period. The lending side saw growth of 20.9%, reaching €143.41m, while the equity side suffered a 14.7% drop to €48.15m. In spite of some difficulties, the sector recorded an all-time record for inflows in the first half of 2024.
In conclusion, the crowdinvesting market in Italy is going through a transition phase, characterised by new regulations and a rationalisation of operators. Despite the recent downturn, the sector continues to offer significant opportunities for entrepreneurs and investors, with sectors such as real estate crowdfunding showing robust growth. The key to the future will be adaptation to new regulations and continued innovation to attract capital and support growth projects.