Active investors interested in crowdfunding

Posted on 16-06-2015 by F. Geurtsen

IEX research by Arwin Bandari found that 63% of readers are interested in lending money through crowfunding. They have about 26,000 euros to invest in this new form of financing. By the way, these are mostly investors with more than ten years of experience and who are active in the stock market on a daily basis.

A quarter of the surveyed investors interested in crowdfunding indicated that they want to try something other than investing in the stock market. Half indicated that the main reason for possibly joining a crowdfunding project is the fixed interest they receive through loan-based crowdfunding.

The rest indicated that the good feeling in helping an SME project would be the deciding factor in whether or not to co-fund. Of course, in practice it will be a combination of these choices. It also appeared that investors may be more loyal to crowdfunding than savers. Should savings rates still go up, savers will start saving more again, leaving investors.

Rapid growth

Of the 80% of respondents who indicated they know about loan-based crowdfunding, a quarter said they would not want to participate in it. They find it too risky, not transparent enough or the possibility of retrieving the money is too limited.

The crowdfunding market in the Netherlands has doubled in size every year in recent years. On an international scale, the Netherlands is doing relatively well with 24 platforms with an exemption from the AFM.

Depending on the activities that the crowdfunding platform performs, a license as an investment firm or financial service provider is required, or an exemption for mediating in callable money, according to stock exchange watchdog AFM. This places the Netherlands in third place worldwide. A total of 104 crowdfunding platforms are active in the Netherlands.

Infancy

Crowdfunding, however, is still in its infancy compared to other loans. In the funding market, in terms of market share of total outstanding loans, it is less than 1%.

In the Netherlands, about 45,000 companies were interested in financing through crowdfunding in 2014, and of these, about 2,000 actually raised money successfully.

http://www.participaties.nl/Column/155726/Actieve-beleggers-hebben-interesse-in-crowdfunding.aspx