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Europe Crowd Lending and Crowd Investing Market Report 2021 -
[July 07, 2021]

Europe Crowd Lending and Crowd Investing Market Report 2021 -

The "Europe Crowd Lending and Crowd Investing Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" report has been added to's offering.

The Europe crowdlending market witnessed transaction of USD 8,399.82 million in 2020, and it is expected to reach USD 10,492.28 million by 2026, registering a CAGR of 2.65%, during the period spanning 2021-2026 whereas the Europe crowd-investing market witnessed transaction of USD 2,089.41 million in 2020, and it is expected to reach USD 3,524.14 million by 2026, registering a CAGR of 6.80%, during the period spanning 2021-2026.

Vendors operating in the market studied have witnessed a significant slump in revenue during the second and third quarter of 2020, which was due to the effect of the pandemic-induced lockdown, which forced businesses to close, thereby, resulting in low levels of investment in business expansion and other activities, diminishing the need for loans.

According to the data published by marketplace Lender Prosper in May 2021, during the month of April 2021, the average loan size reached USD 13,000 and the average borrower income was at USD 107,000, which is a decrease of 2% month-over-month due to higher mix of C-HR rated loans. Also, according to the data from Prosper, the weighted average borrower rate for April originations decreased by 12 bps over the prior month. Similar trends have impacted the market studied during the pandemic.

In Europe, small and medium enterprises are the backbone of the economy, a 2019 study by the European Commission highlighted that there were over 25 million SMEs in the region. Furthermore, SMEs across the region represent 99% ofthe total businesses in the region.

However, the most significant business segment of the European economy struggles to adequately access financing, which is essential for SMEs to expand in the market studied. According to a 2020 European Commission survey, one in every four European SMEs faces a problem when applying for a loan through banking institutions.

The Netherlands was the most challenging country for SMEs to access a loan, with 43% of SMEs reporting difficulties, while the United Kingdom and France seemed to be the least problematic with 13% and 14%, respectively. Such factors have been creating growth opportunities for the crowdlending firms to step up and help SMEs.

The pandemic has also played a significant role in pushing the growth of crowdlending. According to a recent study by Mastercard, 42% of Europeans handle their finances digitally, more frequently than before the pandemic, while 62% have been thinking about switching from traditional banking to digital platforms. The move toward digital platforms gives several new opportunities for bank-independent loans and online marketplaces that offer private loans.

The term crowd-investing or equity-based crowdfunding defines various transactions where an unspecified number of investors come together to invest in a well-defined purpose. Crowd-investing has become a popular investment option for start-ups and is considered as part of venture capital funding. Some of the well-known platforms in the area include EquityNet, CrowdCube, and Seedrs.

The equity-based crowdfunding model is best suited for companies (start-ups or scale-ups) with robust business plans. It works by purchasing shares in a business or revenue share by several individuals (investors) in return for their investment. According to the European Commission, the average amounts raised by individual projects through equity crowdfunding range between EUR 100,000 and EUR 600,000.

Due to the legal framework, Europe has been at the forefront of equity crowdfunding development. However, equity crowdfunding is more complex than other forms of crowdfunding. It requires proper checks and balances to provide a viable channel for financial intermediation in the seed and early seed of the market.

Key Topics Covered:

1 Introduction

2 Research Methodology

3 Executive Summary

4 Market Dynamics

5 Europe Crowd-lending Market Insights

6 Europe Crowd-investing Market Insights

7 Market Segmentation

8 Competitive Landscape

Companies Mentioned

  • Funding Circle Limited? (Funding Circle Holdings PLC)
  • LendInvest Limited
  • Zopa Limited
  • International Personal Finance PLC (IPF)
  • Crowdcube
  • OurCrowd
  • Lidya
  • Omnicredit
  • Crowdestor
  • Monevo Inc.
  • CreamFinance
  • Mintos Marketplace AS
  • Invesdor
  • CrossLend GmbH
  • Seedrs
  • Companisto

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