The European Securities and Markets Authority (ESMA) has released its first annual market report on the EU crowdfunding sector, based on data provided by National Competent Authorities (NCAs) under the European Crowdfunding Service Providers Regulation (ECSPR) on 8 January 2025. This inaugural report analyzes a sample of 98 crowdfunding service providers from 17 EU Member States, offering key insights into the market for 2023. A shortcoming of the ESMA report remains that not all markets are represented, notably Spain which has an active market.
The overall findings are in line with data published by EUROCROWD during 2024 based on own analysis of more than 2,000 transactions.
Key Findings by ESMA:
- Market Size: Over €1 billion of crowdfunding was raised across the EU in 2023.
- Funding Models:
- Loan-based crowdfunding dominated the market, accounting for 65% of total funds raised.
- Debt-based crowdfunding contributed 17%, while equity-based crowdfunding made up 6%.
- Loan-based projects raised significantly smaller average amounts per project compared to debt- and equity-based projects.
- Investor Profile:
- 87% of investors were retail, typically contributing smaller amounts than sophisticated or professional investors.
- Top Economic Sectors:
- Professional, scientific, and technical services received the most funding (33%).
- Construction projects followed, attracting 21% of total funds.
- Country Highlights:
- France led in both capital raised and number of platforms, followed by the Netherlands.
- Lithuania had the largest number of investors, reflecting its mature national crowdfunding framework.
This report underscores the growing role of crowdfunding in diversifying financing options across the EU and highlights the importance of regulatory frameworks in supporting its growth. ESMA is also preparing an online workshop to present the data for late January.
