Market Insights Finance Capital Raising Digital Capital Raising

CrowdLending (Business) - Europe

Europe

The total transaction value in the Crowdlending (Business) market market in Europe is forecasted to reach €5.93bn in 2025.
When comparing globally, it is evident that China leads with a transaction value of €15,220m in 2025.
In France, CrowdLending for Capital Raising is gaining momentum as businesses seek alternative funding sources amidst economic uncertainty.

Key regions: China, United Kingdom, Brazil, Israel, India

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Analyst Opinion

The CrowdLending market within the Digital Capital Raising sector in Europe is witnessing moderate growth, influenced by factors such as regulatory developments, increased investor interest, and the demand for alternative financing solutions among businesses.

Customer preferences: Investors in Europe are increasingly favoring CrowdLending platforms as a viable alternative to traditional financing, driven by a desire for greater accessibility and transparency in investment opportunities. This trend is particularly pronounced among younger demographics, who are more inclined to support innovative businesses and sustainable initiatives. Additionally, cultural shifts towards community-oriented financing are fostering a sense of shared responsibility, encouraging individuals to invest in local enterprises and initiatives that align with their values and lifestyle aspirations.

Trends in the market: In Europe, the CrowdLending market is experiencing significant growth as investors increasingly turn to these platforms for capital raising. This shift is fueled by a growing demand for transparency and accessibility in investment options, particularly among younger investors who prioritize social impact and sustainability. As these platforms evolve, they are fostering a community-driven approach to financing, encouraging contributions to local businesses that resonate with personal values. This trend is reshaping traditional financing landscapes, prompting established financial institutions to adapt and innovate in order to remain competitive.

Local special circumstances: In the United Kingdom, the CrowdLending market is thriving, supported by a robust fintech ecosystem and a regulatory framework that encourages innovation. Investors are drawn to platforms that emphasize ethical lending and social responsibility. In Italy, cultural affinity for local businesses drives participation in community-focused lending, while regulatory support for alternative finance fosters growth. France benefits from a strong entrepreneurial spirit, with CrowdLending becoming a favored option for startups seeking flexible funding. The Netherlands, known for its progressive financial policies, encourages transparency and inclusivity, enhancing investor confidence in CrowdLending platforms.

Underlying macroeconomic factors: The CrowdLending market in Europe is significantly influenced by macroeconomic factors such as economic stability, interest rates, and regulatory frameworks. In countries with strong economic growth and low unemployment, investor confidence tends to rise, leading to increased participation in CrowdLending platforms. Additionally, favorable fiscal policies and tax incentives for alternative finance enhance market attractiveness. Global trends, including the shift towards sustainable and ethical investing, are also impacting investor preferences, driving demand for CrowdLending opportunities that align with social responsibility. Moreover, advancements in technology and digital infrastructure facilitate smoother transactions, further bolstering market performance across the region.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.