Crowdfunding Barometer 2023 - €1.8 billion raised

Crowdfunding Barometer 2023 - €1.8 billion raised

After an exceptionally fruitful year in 2022, the Crowdfunding sector faced new challenges in 2023, with a 16% contraction in funds raised in France (Setzekorn, P. (2024)). This decline stems from a complex economic situation, driven by the real estate crisis, sustained inflation, geopolitical tensions, and the compliance of crowdfunding platforms with the new PSFP regulation. Despite these challenges, encouraging trends are emerging, highlighting the resilience of Crowdfunding and its ability to adapt to new economic realities.

Main Trends of 2023

Slowdown in Real Estate Financing after 10 Years of Growth

After being the main driver of Crowdfunding in recent years, real estate saw a 23% decline in funded amounts in 2023. Despite this trend, it remains the main pillar of Crowdfunding, accounting for 61.3% of financing, or €1.1 billion in 2023. Meanwhile, the average project return rate has increased to around 10.2%, with an average campaign ticket size of about €1 million in 2023 ((Setzekorn, P. (2024)). These figures illustrate the real estate sector's ability to adapt to economic challenges and current investor demands.

Progress in Renewable Energies (RE)

Renewable energies (RE) recorded a 15% increase, further solidifying their position as the sector with the strongest growth, with market share rising from 15.2% to 20.2%. Average project return rates for RE have also increased, although average funding durations have decreased, with an average ticket size of about €1.3 million in 2023 ((Setzekorn, P. (2024)).

Emerging Opportunities Despite Decline in SME and Other Sector Financing

Financing for Small and Medium Enterprises (SMEs) experienced a 13% decrease in 2023. Nevertheless, some platforms with genuine industry expertise and an engaged investor community managed to outperform and record notable advancements ((Setzekorn, P. (2024)).

Setzekorn, P. (2024)

Outlook for 2024

Despite the relative decline in fundraising recorded in 2023, Crowdfunding remains dynamic and adaptable, continuing to meet investor needs while adapting to current regulatory and economic challenges. The sector's resilience and constant innovation provide a solid foundation for development in the years to come, especially in real estate, renewable energies, and business financing, which are expected to continue their long-term growth.