Rapid increase in popularity of crowdfunding
Finland’s crowdfunding market has more than doubled in size this year according to a survey by the Ministry of Finance.
The total amount of crowdfunding collected this year is estimated to be EUR 153 million, compared with EUR 70.5 million last year. 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 crowdfunding market in 2016 can be summarised as follows:
- investment-based crowdfunding: 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)
- 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. This email survey has reached the majority of crowdfunding intermediaries operating in the Finnish market.
Growth expected to continue
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.
Table: Amounts of funding collected or mediated in Finland through different forms of crowdfunding
Investor protection clarified in crowdfunding (press release 8 December)
Crowdfunding Act enters into force in September (press release 25 August)
Crowdfunding Act to provide new financing options for business growth (press release 7 April)
Why is the Crowdfunding Act needed? Questions and answers (12 April)
Aki Kallio, Ministerial Adviser, tel. +358 2955 30477, aki.kallio(at)vm.fi
Armi Taipale, Legislative Counsellor, tel. +358 2955 30399, armi.taipale(at)vm.fi