According to the latest report from Crowdfunding figures.nl, a huge €424 million was raised in the Netherlands through crowdfunding. Last year, more than 13,000 projects and businesses were successfully financed for the very first time in a year. The report claimed an increase of 29% compared to €329 million in 2018.
What is a crowdfunding platform?
Crowdfunding is a method of raising capital from a large number of individuals to finance a new venture. This method of collecting funds taps into the collaborative efforts of a large pool of individuals through a dedicated crowdfunding platform, and social media.
In 2019, companies raised a total of €387.1 million through crowdfunding, with an average successful amount raised of €148,000. Moreover, the financing for companies is an increasingly large part of the amount raised with crowdfunding.
The total amount raised for creative projects such as film, music, and theater is €9.9 million, and the average amount per project was €11,000. For social projects, the total amount raised is €16.2 million, and the average amount per project is €2,000.
On the other hand, consumers who financed a personal loan through crowdfunding has raised a total of €10.8 million — for example, the purchase of a car or the expansion of their house.
Most popular form of crowdfunding – Loan!
As per the reports, no less than 91% of the collected amount is intended for companies in 2019. The most popular form of crowdfunding is a loan. Last year, 89% of the collected amount was in the form of a loan. It’s worth mentioning that the number of companies using crowdfunding did not grow in 2019, but the amount did increase.
Collin Crowdfund – largest platform in the Netherlands
Notably, Geldvoorelkaar was the market leader for crowdfunding in the Netherlands, through which €51 million were browsed in 2019. Collin Crowdfund has the most extensive crowdfunding portfolio and is, therefore, the largest platform in the Netherlands. The portfolio of Collin Crowdfund has now added up to more than €206 million.
Main image credits: Yasonya/Shutterstock
Stay tuned to Silicon Canals for more European technology news.