Crowdequity, despite being a lesser known form of Crowdfunding, is growing considerably in our country. In 2014 this type of crowdfunding grew by 234%. This year we have witnessed new records in this area. MindTheByte, closed a €234,310 round in October, making it the largest crowdequity round raised in the biotech sector in Spain with 115 private investors.
If a week ago we told you that Spanish biotechs were going public on the MAB, this week it is the turn of crowdfunding and acquisitions in the biotech sector.
Crowdlending is a form of alternative financing that is growing considerably in our country. In the last two years this form of financing has grown by 360% with an average profitability of 7%. In the month of October three platforms have been protagonists in this sector. MyTripleA, Zencap and Loanbook.
Crowdlending has grown in Spain by more than 360% in its first two years, reaching a total volume of €13.7M. It is a type of financing that, although it has just started in our country and is still seen as something new, it has a lot of potential. Bank financing still amounts to 95% in Spain, while in countries such as the United Kingdom or the United States this figure does not exceed 50%.
Faced with the difficulty biotech companies have in finding both private and public funding, they are turning to crowdfunding. This year, Spain has created the first European platform and the second worldwide for biotech crowdfunding. Although the operations closed in Spain are still of a small amount, operations closed in biotechnology in other parts of the world, such as that of Cell Therapheutics for almost €1M, show that it is a form of financing that will eventually have a significant impact on the sector. In addition, the public sector has also launched a crowdfunding platform in the biotech sector.
Financing through crowdlending platforms is growing in Spain and the rest of the world due to the advantages it offers. According to a worldwide corporate study of the sector published in 2015 by Massolution, crowdlending has grown by 233% with 11,080 million dollars raised in 2014. Moreover, crowdlending platforms are growing. Recently two Spanish crowdlending platforms: Ecrowd and Arboribus have received funding.
In Spain, crowdlending with platforms such as Comunitae, has grown by 363% in the last 3 years, being the form of crowdfunding that has experienced the highest growth rate. Crowdlending is already considered a reliable possibility to raise money for companies. Banks around the world cannot remain indifferent to the fees that platforms are getting and are reacting in different ways.
In 2014 the P2P lending market has grown considerably and expectations for the coming year are even higher. The leading countries in the P2P market are the US and the UK. We wanted to analyse how the year went in these countries and the expectations for the sector.
In Spain there are more than 70 crowdfunding platforms, in the last year the growth of this method of financing has been spectacular, crowdfunding in Spain moved 30 million euros, more than double that of the previous year. Below is an analysis...
The government approves the draft law on the Promotion of Business Financing, which includes a high level of regulation on crowdfunding. Among the new features of the law is the distinction between qualified and non-qualified investors.
Crowdfunding has grown a lot in recent years, according to a study by the agency Massolution, in 2012 this type of funding grew by 81% compared to the previous year, raising a total of $2,700M worldwide and in 2013 the figure doubled to more than $5,000M.
The limitation on the amount of investment, the main fear of all platforms in the first draft of the bill, has been overcome. Although the draft bill states that by default all investors will have a limit on their investments (maximum €3,000/transaction and €6,000/year), the door is left open for professional investors who are used to analysing the risks of investments to invest without limits per project or per year.