EUROCROWD is happy to release a preliminary analysis of the 2023 market for licensed crowdfunding service providers (CSPs) operating under the European Crowdfunding Service Provider Regulation (ECSPR). The focus was on transaction-level data for ECSPR-licensed operators, offering insights into the sector’s performance during its inaugural year. While aggregate value and volume figures provide historical context, transaction-level analysis sheds light on the operational dynamics of this newly regulated sector.
Summary of Results
- Transaction Volume: Over 2,000 individual transactions (loans and securities) were recorded.
- Average Transaction Value: €610,000.
- Median Transaction Value: €300,000.
- Distribution: Approximately 350 transactions exceeded €1 million, indicating a prevalence of smaller deals.
Loans slightly outpaced securities in total transaction volume, though the latter had a higher average value (€680,000 vs. €470,000 for loans). This suggests that while security transactions were fewer, they tended to involve larger amounts. Despite this, loans accounted for a marginally higher total transaction value.
Transaction Trends Over Time
EUROCROWD calculated a three-month rolling index to smooth potential fluctuations in transaction volume. Two peaks were observed during the year, with dips in activity during the summer and year-end periods. These patterns may reflect external factors, such as batch licensing approvals by national competent authorities, influencing the market’s operational rhythm.
Data Quality and Limitations
The analysis relied on publicly available, self-reported data, which may be subject to inconsistencies. Limitations include incomplete information on transaction closure dates and varying data quality across CSPs. As a result, caution is advised in interpreting these preliminary findings. EUROCROWD encourages CSPs to enhance transparency and align with ECSPR’s consumer protection and reporting standards to improve data reliability.
Regulatory and Market Context
The data underscores the early-stage nature of the ECSPR-regulated market, with room for growth and professionalization. Strengthening compliance with ECSPR’s transparency requirements will be crucial for building trust and fostering sector-wide scalability. EUROCROWD remains committed to supporting CSPs in navigating these challenges while promoting best practices across the industry.
Source: EUROCROWD, January 2024
