A snapshot of the amount collected until 2016, with some forecasts for 2017.

Having reached the end of the year, it’s time to assess once more the state of crowdfunding in Italy. In Starteed we resumed the work made in May 2016, with a first analysis of market’s numbers, and extended the calculation to the entire 2016, trying to objectively measure the state of health of the sector across the nation.

To do this, we manually counted, as always, each single project on the platforms, asking the owners’ feedback, where possible, to confirm the results. We had to do this because these platforms often do not publish, as they should, collection data on their portals, and even when surveyed through questionnaires or interviews, declare values which often look different from those observed through direct counting.

The result is therefore an accurate snapshot about the overall collection value (i.e. since those platforms were born), broken down by type of collection and the specific platform involved, and updated between the end of December 2016 and the first days of January 2017.

To this effect, only successful campaigns where a real economic transaction took place were considered, excluding, therefore, those that did not make it.

RESULTS

Reward and Donation

Bandbackers > € 16,780.00 (9 projects)
BeCrowdy > € 317,420.00 (65 projects)
Buonacausa > € 2,788,445.84 (1390 projects)
Crowdarts > € 16,142.00 (13 projects)
Crowdfunding Südtirol > € 27,103.00 (3 projects)
Derev > € 1,806,427.00 (140 projects)
Eppela > € 4,656,016,.00 (556 projects)
Eticarim > € 311,221.00 (67 projects)
Fidalo > € 40,130.00 (10 projects)
Funditaly > € 2,853.00 (16 projects)
Giffoni Crowdfunding > € 20,447.00 (11 projects)
Gigfarm > € 5,790.00 (8 projects)
Idea Ginger > € 472,060.00 (61 projects)
Innamorati della Cultura > € 97,823.50 (19 projects)
Insieme doniamo > € 46,889.00 (3 projects)
Kendoo > € 275,975.00 (42 projects)
Laboriusa > € 29,768.74 (14 projects)
Letsdonation > € 1,706.57 (50 projects)
Mecenup > € 13,180.00 (7 projects)
Meridonare > € 940,416.26 (92 projects)
Musicraiser > € 3,513,000.00 (870 projects)
Planbee > € 160,763.00 (11 projects)
Produzioni dal Basso > € 3,550,405.00 (1,578 projects)
Progetto Civibanca > € 22,974.00 (87 projects)
Proposizione > € 4,803.00 (4 projects)
Replace > € 31,758.00 (5 projects)
Rete del Dono > € 3,660,230.00 (2,780 projects)
Schoolraising > € 64,107.00 (35 projects)
Shinynote > € 121,183.00 (63 projects)
SportSenzaFrontiere > € 23,360.00 (40 projects)
Sportsupporter > € 2,830.00 (18 projects)
TIM WithYouWeDo > € 1,350,076.00 (61 projects)
Triboom > € 40,489.00 (5 projects)
Universitiamo > € 309,552.00 (11 projects)
WeTestWater > € 6,295.00 (192 projects)
WOOP food > € 6,260.00 (2 projects)

Total Donation Reward = € 24,754,678.91

Do it Yourself

Bitedoglymphoma > € 10,618.86
Breathetruffle > € 17,185.00 (45 backers)
Festival Internazionale del Giornalismo > € 115,420.00
Fior Italy > € 162,365.00
Insieme per il fila > € 228,000.00 (2,000 backers)
Iosostengosanpetronio > € 199,478.00
Mag Verona > € 18,160.00 (159 backers)
Non si sbudelli l’Italia > € 13,578.36 (397 backers)
Orchestra Mozart Risuona > € 91,000.00 (1,000 backers)
Palazzo Madama Torino > € 96,103.90 (1,590 backers)
Pandora TV > € 55.031,00 (994 backers)
Radio105 Caritas > € 18.019,00 (694 backers)
Rinascitacastelluccio > € 106,270.00 (78 backers)
Slow Food 100 orti > € 84,020.00 (160 backers)
Slow Food WeFeedThePlanet > € 303,880.00
Un passo per San Luca > € 339,743.00 (7,111 backers)
Unaiutosubito > € 1,451,745.00 (18,800 backers)
Valigia Blu > € 17,546.00 (586 backers)

Total DIY = € 3,328,163.12

Equity

Assiteca Crowd > € 928,000.00 (2 projects)
Crowdfundme > € 535,040.00 (4 projects)
Equinvest > € 792,586.00 (3 projects)
Investi-re > € 116,829.00 (1 projects)
Mamacrowd > € 207,930.00 (1 projects)
Muum Lab > € 50,000.00 (1 projects)
Next Equity > € 1,452,802.60 (2 projects)
Opstart > € 392,100.00 (3 projects)
Starsup > € 2,056,238.00 (7 projects)
TipVentures > € 738,00.00 (4 projects)
Unicaseed > € 157,780.00 (1 project)
WeAreStarting > € 131,500.00 (2 projects)

Totale Equity = € 7,559,205.60

Lending

Borsa del Credito > € 7,015,843.00 (248 projects)
Prestiamoci > € 4,213,000.00 (737 projects)
Smartika > € 25,365.280.00 (4,933 projects)
Terzo valore > € 19,554,739.00 (90 projects)

Total Lending = € 56,148,862.00

Total Crowdfunding in Italy (2016)
€ 91,790,909.63

(as of December 2016/January 2017)

ANALYSIS

The last semester of 2016 saw a good growth of the entire sector, which in just 7 months recorded a 35% increase, with equity crowdfunding and DIY initiatives (typically in the shape of donations) accelerating the most.

Taking into account the previous years instead, we notice a consistent trend of overall growth, with a promising +62% increase in the amount collected in 2016, compared with that of 2015. Although still relatively modest, in terms of collected amount, the Italian crowdfunding market keeps showing a certain verve.

From the analysis we can also notice the number of commercial operators being inversely proportional to the collection volume. Among the causes for this, surely the ease of access to the creation of non-regulated platforms, as it happens for those Donation/reward based, and the characteristics of the various models as well, that see Lending to generate much higher collection amounts compared to other non-financial models.

As for the average project value, we can notice that Equity Crowdfunding projects are the most important in tems of collection, with an average collection of about € 243,000 for each campaign. On Donation/Reward based platforms the average amount collected per single project hover around € 4,000, a little lower than the average value found on other international platforms.

CONCLUSIONS

We did not witness proper market stabilization yet, as we hoped for in 2016, but I think that in 2017 the closure or the merging with other operators of many Donation/Reward and Equity platforms, which nowadays host just a few projects and are unable to find a sustainable business model, is to be expected.

We are now in the aftermath of a peak of expectations, which often saw crowdfunding under the spotlights more for its theoretical capabilities, than for the results it actually achieved, and the disenchantment towards the tool will create the right basis for a widespread awareness and will lead to a proper usage by operators, project developers and supporters.

The hype cycle of crowdfunding in Italy

2017 will also and above all, be the year of Equity Crowdfunding, which, thanks also to the provisions contained in the 2017 Budget Law, approved by the Senate on December 7th last year, will potentially enjoy a new impulse, that entrepreneurs and operators will need to grab without hesitations, showing some courage.

The advantages for companies looking for funding are significant. The law envisages in fact the extension of equity crowdfunding to all SMEs (until now it was limited only to startups and innovative SMEs), stimulates Pension funds to invest in equity in limited companies and will give INAIL the chance to invest in innovative startups.

The advantages are not only for companies. Investors, in fact, will enjoy a 30% tax deduction on investments (only for investments in Startups and innovative SMEs) and the Individual Saving Plans will see capital gain excluded from taxes.

Another emerging trend is that of personalized solutions for Do It Yourself. Institutions, brands, large companies and established communities looking for more flexibility and control in creating crowdfunding campaign are increasingly approaching the market.

This kind of solutions if on the one hand do not benefit from the visibility offered by traditional platforms, allow to create straight on one’s website a campaign whose look can be totally customized, often with no transaction fees (which could be useful in case of campaigns with particularly large amounts collected), with full control over backers data and greater freedom about the collection modality.

Although I might seem biased about this (at Starteed we develop, besides platforms for operators, this kind of solutions), I’m firmly convinced that it will be one of the most important trends of the next years, without negatively affecting traditional platforms, but with an interesting evolution that will witness the entrance of new stakeholders that do not identify themselves in the typical operating methods we’ve known so far.

Have a great 2017 in the name of crowdfunding, whichever form it takes!

Claudio Bedino // Co-founder of @Starteed

(this post has been originaly posted in Medium)


A special thanks to the amazing Starteed team, which helped me produce this report spending entire days in manually counting each single project. You Guys Rock! ❤

For reporting corrections or missing information you can reach me here: claudio.bedino@starteed.com


Starteed is a crowd company which develops solutions for the crowdfunding and co-creation markets, with the goal of providing customized technological infrastructures and services for those interested in creating more effective and transparent financial models.

Thanks to the experience gained by developing its own technology, it is able to provide white-label solutions that integrate marketing, business and management features for professionals and organizations aiming at creating Do it Yourself campaigns or multi-project platforms for the various crowdfunding models, from donations to equity participation in startups.

www.starteed.com

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