Italy | Crowdfunding Report 2020

Introduction

Every year, Starteed realizes the Report on Crowdfunding in Italy. The research activity, born as a mapping of the main trends of the sector in Italy, over time has become a point of reference for the analysis of the health of the entire sector.

Only Italian platforms in the Donation & Reward, Equity and Lending based crowdfunding were taken into consideration. As far as Donation & Reward is concerned, “all or nothing” campaigns that at the time of counting had not yet exceeded the reference goal or that had already ended without success were not taken into consideration.

2020 was a special year, in which the pandemic deeply affected everyone’s lives but where crowdfunding proved to be a resilient tool ready to fill in where traditional funding channels failed to reach quickly. There was significant growth in Donation & Reward, although the majority of funds dedicated to the emergency were raised on the Gofundme platform which, as a foreigner, is not mentioned in the Report. It is interesting to note that, although donations were mostly destined to the health emergency, the main platforms also recorded significant results on campaigns in other areas, as if the pandemic has generally increased Italians’ propensity to donate. Equity crowdfunding suffered the effects of the moment of uncertainty, especially in the central part of the year, but nevertheless recorded excellent results thanks also to a strong increase in the offer for the real estate market and that of investment vehicles that mitigated the risk linked to investment in individual startups. Lending, on the other hand, seems not to have suffered the effects of the pandemic, continuing its usual strong growth and confirming its increasingly important role in SME financing as well as in financing for individuals.

How Much is Crowdfunding Worth in Italy?

In 2020, the volume of crowdfunding on Italian platforms saw an excellent momentum, recording a higher growth rate than the previous year. An interesting figure considering the economic context that highlights a stable trend of the sector. The overall value is, as always, largely determined by the results achieved by Lending, which grew by 75%, although both Donation & Reward and Equity collected significant amounts with a growth of 38% and 95% respectively. Expectations are also high for 2021.

Crowdfunding has proven to be a useful tool that withstands the unforeseen events of a rapidly evolving economic and social context. The hope also lies in a greater awareness and tendency to donate on the part of Italians who, in 2020, contributed for the first time to a crowdfunding campaign, thanks to a strong awareness given by the emergency context. Risk factors for growth in 2021 remain the resilience of the economy and the advancement of giving by foreign platforms.

Crowdfunding Volume by Type

All crowdfunding models have recorded significant growth, although the increase in the entire sector is mainly attributable to the results of equity and lending crowdfunding platforms that have been able to take advantage of the increasingly favorable regulatory environment. Of note for these two models is the proliferation of platforms in the real estate sector which, thanks to the prospects for secure, short-term returns, have satisfied the interest of many investors. The only type that has recorded greater growth compared to previous years is equity crowdfunding with an increase of 114%. In the donation & reward sector, the most relevant success stories see partnership experiences and collaborations promoted by entities with a view to Open Innovation and CSR.

*Fino al 2020 – Total amount reached by 2020, Solo nel 2020 – Amount realized during 2020

Download the original report (in Italian)