HELSINKI: Country´s crowdfunding market has increased significantly this year, which was more than double, according to a survey conducted by the Ministry of Finance. The total amount of crowdfunding collected this year is estimated to be EUR 153 million, compared to EUR 70.5 million last year, said a government press release on Wednesday. Two years ago the size of the market was EUR 52 million.
The growth in investment-based and loan-based crowdfunding, which are important forms of funding for businesses, has been particularly rapid. The survey showed that investment-based crowdfunding would be EUR 41.3 million (year-on-year increase of 184 per cent), loan-based crowdfunding for businesses EUR 39.9 million (year-on-year increase of 92 per cent), peer-to-peer lending between private individuals EUR 71.3 million (year-on-year increase of 106 per cent) and reward-based crowdfunding: EUR 846,000 (year-on-year increase of 32 per cent).
The Ministry of Finance has carried out a questionnaire survey annually among the market operators since 2014. The email survey has reached the majority of crowdfunding intermediaries operating in the Finnish market. The Ministry of Finance expects the crowdfunding market to grow further. Factors contributing to this growth include the new Crowdfunding Act, which clarifies the rights and obligations of both market operators and investors. The Act places loan-based and investment-based crowdfunding within the sphere of regulated financial markets, the press release added.
