Italian Crowdfunding Platforms - An Overview (Updated Version - April 2013)
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Italian Crowdfunding Platforms - An Overview (Updated Version - April 2013)

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Italian Crowdfunding Platforms - An Overview (Updated Version - April 2013) Italian Crowdfunding Platforms - An Overview (Updated Version - April 2013) Document Transcript

  • Analysis of Italian Crowdfunding PlatformsDaniela Castrataro (twintangibles & crowdfuture) and Ivana Pais (Cattolica University)with the support of the ICN – Italian Crowdfunding NetworkApril 2013v 2.1This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License.Analysis of Italian Crowdfunding Platforms – Castrataro, Pais – April 2013 1
  • Table of ContentsComposition of the Italian crowdfunding market............................................................................3Descriptive list of Italian crowdfunding platforms...........................................................................4History and geography of Italian crowdfunding platforms.............................................................9Genesis of Italian crowdfunding platforms: rationale and influences...........................................10Crowdfunding models on the Italian market................................................................................10Demography of Italian crowdfunding platforms...........................................................................10Legal form, partners and personnel.............................................................................................10Italian crowdfunding in numbers..................................................................................................11Target market and target audience, competitors, collaboration networks...................................12Main issues on the Italian crowdfunding scene...........................................................................13The legal framework....................................................................................................................13What is crowdfunding according to the players in the sector.......................................................16Conclusions.................................................................................................................................17Index of images and graphsFig. 1 Breakdown of Italian crowdfunding platforms models.......................................................3Graph n.1 Timeline showing the launch year of the main Italian crowdfunding platforms............9Graph n. 2 Total value of successfully funded projects for each crowdfunding model................11Fig. 2 Breakdown of the total value of funded projects for each crowdfunding model................12[*cover image: tag cloud created with the definitions of crowdfunding given by the survey respondents]Analysis of Italian Crowdfunding Platforms – Castrataro, Pais – April 2013 2
  • Composition of the Italian crowdfunding marketAs of April 10, 2013, there were 21 active Crowdfunding platforms in Italy, and two in theirlaunch phase.Twelve platforms were reward-based and seven were donation-based. Only two platforms canbe included in the equity-based model and two in the Social Lending model.In total, 12 platforms responded to our online questionnaire in November 2012.Fig.1 Italian crowdfunding platform modelsAnalysis of Italian Crowdfunding Platforms – Castrataro, Pais – April 2013 3
  • Descriptive list of Italian Crowdfunding platformsReward-based/GeneralistBoomstarter - www.boomstarter.comBoomStarter is a generalist crowdfunding platform, founded in September 2011 as the firstproject of the platform itself, raising 8000 Euro. Its an example of the reward-based platformusing the ‘take it all model. It is uncertain whether the platform is still active.Com-Unity - http://www.com-unity.it/Com-Unity is a generalist crowdfunding platform, using a mixed donation-reward model. Itsowned by Banca Interprovinciale Spa and it was developed together with the consultancy firmStudio SCOA. It was launched in March 2013. The platform publishes projects from manydifferent sectors, with a stronger interest towards humanitarian and scientific areas.Crowdfunding Italia - www.crowdfunding-italia.comCrowdfunding-Italia is a generalist crowdfunding platform, founded in October 2012. Theregistration for Crowdfunding-Italia is free and no commissions are imposed on raised funds.De Revolutione - www.derevolutione.comDeRev is "a platform that allows you to turn your best ideas into revolutions in order to materiallyimprove the world we live in". On the platform its possible to find crowdfunding campaigns aswell as petitions. Founded by Roberto Esposito, the platform was launched in November 2012.Eppela - www.eppela.comEppela is a reward-based crowdfunding platform founded in the second half of 2011 by NicolaLencioni It allows for the funding of innovative and creative projects in the fields of art,technology, film, design, music, comics, social innovation, writing, fashion, non-profitorganization.Kapipal - www.kapipal.comKapipal was founded in 2009 by Alberto Falossi and defines itself as a site to raise moneyonline. This is a generic platform that provides funding for any project, particularly personalprojects, such as birthdays or wedding lists. Kapipal also defines itself as the first internationalcrowdfunding platform to support personal crowdfunding. It doesn’t impose any fees on projects.Produzioni dal Basso - PdB - www.produzionidalbasso.comPdB is believed to be the first crowdfunding platform in Italy, founded in 2005 by AngeloRindone, The purpose of the platform is to "provide a space for all those who want to proposetheir own project through a bottom-up production system"Produzioni Dal Basso is free and each project proposal is managed independently and withoutintermediation.Analysis of Italian Crowdfunding Platforms – Castrataro, Pais – April 2013 4
  • Starteed - www.starteed.comStarteed was founded in late 2011 by Claudio Bedino. The platform launched in September2012, and is a crowdfunding site that helps people finance their ideas with the financial andsocial support of the Starteed Community. The platform integrates the crowdfunding campaignwith all subsequent stages of the development and sale of the product, giving the creator theopportunity to sell their product on the platform itself.Reward-based/Regional-LocalFinanziami il tuo futuro - www.finanziamiiltuofuturo.it (Valle dItria - Puglia)Finanziami il tuo futuro (lit. Fund my Future) is a local crowdfunding platform, operating in thearea of Valle dItria in the South-Italian region Puglia, aimed at the promotion and diffusion ofnew projects for the development of the local community. The platform was born at thebeginning of 2013 to answer “the need to integrate and revive the productive sectors of the localeconomy through innovation and creativity brought by the local youth”. Its targeted to 18-35 y.o.living in the municipalities of Alberobello (Ba), Cisternino (Br), Locorotondo (Ba), Martina Franca(Ta), Noci (Ba) and Putignano (Ba). Project holders can send an application to raise a fixed sum(10.000E) in order to realise projects of a maximum duration of 12 months.Kendoo - http://www.kendoo.it/ (Bergamo)Kendoo is a crowdfunding platform operating in the North-Italian province of Bergamo,promoted by Media on (a company owned by Gruppo Sesaab of Bergamo, who publishes"L’Eco di Bergamo"). The platforms objective is to create and fund projects, using an all-or-nothing model. The platform was launched at the beginning of 2013.Reward-based/NicheCineama - www.cineama.itCineama is a platform and a community around cinema, open to professionals, creativeprofessionals and cinema lovers and beyond. The platform, founded by Tania Innamorati,Federico Bo, Antonio Badalamenti, Fabrizio Mosca and Savina Neirotti in 2011, combinescrowdsourcing and crowdfunding, directly involving cinema lovers in the phases of creation,production, promotion and distribution of films, documentaries, shorts, web series.Musicraiser - www.musicraiser.comMusicraiser is a reward-based crowdfunding platform dedicated exclusively to music. Foundedby Marta Sui Tubi singer, Giovanni Gulino, and his partner DJ and producer Tania Varuni, theplatform was launched in October 2012 and hosts fundraising projects for CDs, promotionaltours, music videos, concerts, festivals and all that has to do with music.Analysis of Italian Crowdfunding Platforms – Castrataro, Pais – April 2013 5
  • Reward-based/Do It Yourself (DIY) CrowdfundingThe so called DIY Crowdfunding (or Direct Crowdfunding) is a trend that started developing inItaly too. This happens when campaign owners decide to run their campaigns independent ofplatforms. You can find below some recent examples of DIY Crowdfunding.Acquista con noi un pezzo di Storia (lit. Lets buy together a piece of history) - PalazzoMadama (Turin) www.palazzomadamatorino.it/crowdfunding/The project was launched by the museum Palazzo Madama in Turin. It raised 89.409,49E in 2months, surpassing its 80.000E target, in order to bring a porcelain set that belonged to thedAzeglios back to Turin. It was a reward-based crowdfunding campaign: backers, in return fortheir pledges, will receive rewards such as entrance tickets to the museum, mentions in theacknowledgements, etc.Community – Il Film http://www.communityilfilm.com/home/The projects objective is to finance the production of Community Il Film, a social story toldthrough a comedy film. The target is 200.000E, the deadline is September 2013, when theshooting is set to start.Un Indovino Ci Disse – Il Film (lit. A fortune-teller told us – The Movie)http://www.unindovinocidisse.it/The campaigns objective is to fund the production of the movie Un Indovino Ci Disse, by MarioZanot, adapted from the book Un Indovino Mi Disse (lit. A fortune-teller told me) by TizianoTerzani. The target is 500.000E to be reached by June 2013.vice versa – Italia Pavilion at the 55th International Art Exhibition - la Biennale di Veneziahttp://viceversa2013.org/it/crowdfunding-artisti-opere-arteThe initiative aims to support the production of artists works, cultural mediation, promotion andcommunication; the organization of encounters with artists and opinion leaders and a finalconference on the themes of the Italian Pavilion. Its a reward-based campaign of a duration of90 days. So far over 100.000E have been raised.DonationsBuonaCausa - www.buonacausa.orgBuonaCausa is the "ethic network dedicated to good causes and projects that require support."The platform allows associations, testimonials, companies, donors and activists to collaborateon initiatives and projects of social value.Fund For Culture - http://www.fundforculture.org/Fund Culture is a system for collecting funds for culture, which want to "encourage dialoguebetween those who want to spread culture in Italy and who are seeking support from smalldonations." This project was founded in Naples in October 2010 from an idea of Adriana Scuottoand Antonio Scarpati. The platform’s objective is "to fund cultural initiatives - such as exhibitions,Analysis of Italian Crowdfunding Platforms – Castrataro, Pais – April 2013 6
  • restorations, archives, publications, shows and movies - promoted by artists, non-profitorganizations, cultural foundations, public institutions."Iodono - www.iodono.comIodono is a site for personal fundraising founded in the first part of 2010, a brainchild ofDirectChannel, a Milan-based company leader in database management in the publishing andnon profit industry. The goal is to allow people to donate online to raise money for nonprofitcauses and other causes close to them.Pubblico Bene - www.pubblicobene.itPubblico Bene is an experimental project of investigative journalism funded by readers andbased on the participation of readers and journalists, made possible thanks to the contribution ofthe GECO project, funded by Emilia Romagna region. The platform, which promotes "a newmodel of independent information, on a local basis, is based on the model of community fundedreporting".Rete Del Dono - www.retedeldono.itRete del Dono is a web platform for the collection of donations for socially useful projects,managed by non profit organisations. It was born in 2011 from an idea of Anna Maria Siccardiand Valeria Vitali, and its objective is evangelising the culture and practice of personalfundraising in Italy.ShinyNote - www.shinynote.comShinyNote was born in 2009 from an idea of Roberto Basso and Fabrizio Trentin, from Brescia.The platform officially started in March 2011. ShinyNote was born with the idea and the purposeof "meeting the needs of individuals to find a shared space for affective and emotionalexpression". The platform is a shared space between non-profit organizations and ordinarycitizens, in which one can find more or less positive storytelling about ordinary people andfinance solidarity projects.Terzo Valore - https://www.terzovalore.comTerzo Valore is a service offered by Banca Prossima of Gruppo Intesa Sanpaolo, dedicated tothe Third Sector. Its a crowdfunding service through which people (living in Italy) and entities(with registered office in Italy) can lend or give money directly to no profit organisations who areclients of Banca Prossima. The bank selects the projects and funds a minimum of 33%, pluswhat is missing to reach the target. The project owner sets the interest rate and the lender candecide to reduce it or cancel it, or to give money instead.Equity-based/Angel Investing PlatformsSiamoSoci - www.siamosoci.comSiamoSoci is a marketplace for startups, a "search engine that allows investors to findcompanies that understand their business." Through the platform, unlisted companies can raiseAnalysis of Italian Crowdfunding Platforms – Castrataro, Pais – April 2013 7
  • capital from private investors to finance growth, facilitating the creation of "club deals"(investment group) between investors with different skills.We Are Starting - http://www.wearestarting.com/Its an Equity-based Crowdfunding born March 2013 with "the objective of giving visibility toentrepreneurs with brilliant ideas".Social LendingSmartika - www.smartika.comArrived in Italy in 2007 as Zopa Italy, after a period of inactivity due to problems with Bancad’Italia, Smartika was funded in the first half of 2012.Smartika, managed by Maurizio Sella and rest of the team that brought Zopa to Italy, offers theopportunity to do social lending in Italy, regulated and supervised by the Banca d’Italia in orderto protect users.Prestiamoci - www.prestiamoci.comPrestiamoci, Italian platform for loans between people, was born in 2010, founded by MarianoCarozzi, Paolo Galvani and Giovanni Tarditi, entrepreneurs with significant national andinternational experience in the world of banking and finance. "Prestiamoci aims to promote asmuch as possible the exchange of money between individuals without the intermediation ofbanks or other lending institutions."Analysis of Italian Crowdfunding Platforms – Castrataro, Pais – April 2013 8
  • History and Geography of Italian crowdfunding platformsThe longest established platform is Produzioni dal Basso (launched in January 2005), followedby Smartika in 2008 (first called Zopa Italy), Kapipal in 2009 and Prestiamoci in 2010. However,the boom year for crowdfunding platform growth in Italy was 2011 with Shinynote, Eppela,Cineama.it, www.retedeldono.it and SiamoSoci all being founded, followed by Musicraiser,Starteed and Crowdfunding-Italia in 2012. On average, the time between the idea generationand the launch of the platform is one year.Graph n.1 Timeline showing the launch date of the main Italian crowdfunding platformsPlatforms are concentrated in northern Italy, with only one platform located in the center of Italy(Rome) and two platforms in the South. One platform has its registered office abroad (London,GB).Analysis of Italian Crowdfunding Platforms – Castrataro, Pais – April 2013 9
  • Genesis of Italian crowdfunding platforms: rationale and influencesThe idea of launching the platforms mainly came from contact with foreign initiatives (especiallyAmerican) and from the desire to replicate those projects experiences in Italy:"From an idea of acollaborative platform around ideas and projects, I discovered American crowdfunding and Iwas fascinated by it. I immediately realized that it could be a revolution, made possible thanksto the evolution of social networks, and that could allow many developments also inEurope,""The Italian platforms are not popular and not free. [Our platform] was born exclusivelyfor charitable purposes and it’s free","Experience of the first social lending to theworld","studying a foreign platform."ProduzioniDalBasso is slightly different, since it was founded much earlier than the rest of thenational and global platforms:"In 2005 the term crowdfunding wasn’t there yet, so I came upwith the idea of a horizontal system to support self-productions. This idea originated from theItalian hacking environment”.Crowdfunding models on the Italian marketAmong the respondents, 80% are reward- or donation-based crowdfunding platforms. Thepredominant crowdfunding model is reward-based, followed by donation-based. Many platformsdo not recognize themselves in the traditional models of crowdfunding and propose their owndefinition: Shinynote speaks of donations, ProduzioniDalBasso does "folkfunding", SiamoSoci isan "angel investing" platform, ReteDelDono.it does "personal fundraising" for the non-profitsector, and Cineama, at least for the moment, is essentially about crowdsourcing.Demographics of Italian crowdfunding platformsFounders and CEOs of platforms are between 30 and 50 year-old, although the average age islower in the field of reward-based crowdfunding, where more than half of the respondents areless than 35 year-old. Founders have gained professional experience in the areas ofspecialization of the platforms or in the communication field. Over 70% have a qualificationequivalent or higher to a degree.Among the staff and collaborators, 8% are women, and the age range is between 26 and 51year-old, the average being 39 year-old. 85 % have a degree, 69% met in a professionalcontext, only one is a relative, the rest were introduced through mutual friends.Legal form, partners and employeesOnly two platforms are not listed in the Company Register. The others are mainly Srl (Italianequivalent for Ltd), with the exception of Prestiamoci and Smartika (Spa, Italian equivalent forstock corporation), and Crowdfunding Italia (Ltd, based in the UK).Half of the respondents have only one partner or no partners at all, especially in the reward-based sector. The average is significantly higher when it comes to equity-based and sociallending platforms, which have an average of 8 members. The platform with the highest numberof partners has got 31.Analysis of Italian Crowdfunding Platforms – Castrataro, Pais – April 2013 10
  • Half of the platforms have between 2 and 4 employees, the other half does not have any.Employees (permanent and temporary) are typically few in number: the highest being 7employees.Italian crowdfunding in numbersThe number of projects received by all platforms since their launch is more than 30,000, ofwhich more than 75% were received by Social Lending platforms; almost 9,000 of those wereapproved / published, of which 28% were successful.The total value of funded projects amounts to 13 million Euros, mainly raised by social lending(78 %) and equity-based (15%) platforms. Only 7% of the total value of the funded projects isattributable to reward-based/donation-based crowdfunding.Model Total Value of fundedprojectsPublished / Approved Projects Successfully funded projectsReward-based E 726,705 1522 242Donations E 245,000 176 130Equity-based E 2,000,000 110 8Social Lending E 10,304,500 5313 1855TOTAL E 13,274,205 8819 2477Graph n.2 Total value of funded projects divided by models of crowdfundingThe number of projects received by reward-based and donation-based platforms is almost3,000. About 1,700 of these were accepted and 22% were successfully funded, for a total ofnearly 1,000,000 Euros.The number of projects received by social lending platforms is over 26,000, with more than5,000 accepted. Approximately 35% (1,855) of the loans were successfully funded, at a value ofmore than 10,000,000 Euros.Equity-based platforms raised 2,000,000 Euros.Reward-based/donation-based crowdfunding projects raised an average of 2,600 Euros.Numbers are higher in social lending (avg. E 4,150/project), while equity based/angel investingstands out with an average of E 250K per project, somehow following a global trend (accordingto Massolutions “Crowdfunding Industry Report” published in May 2012, 2/3 of reward/donation-Analysis of Italian Crowdfunding Platforms – Castrataro, Pais – April 2013 11
  • based crowdfunding campaign raise less than 5000$, whereas over 80% of equity-basedcampaigns raise over 25.000$).Fig.3 Breakdown of the total value of funded projects for each crowdfunding modelTarget market and audience, competitors, collaboration networksThe target market is mainly national with the exception of two platforms that place themselveson the European market.All platforms accept individuals proposing projects (with the exception of ReteDelDono, which isonly aimed to associations and non profit organisations); however Cineama mainly targetscompanies, Musicraiser and Produzioni dal Basso associations, and SiamoSoci both;Shinynote targets associations and public administration bodies; Starteed, Eppela andCrowdfunding-Italia to all these categories of recipients.The competitors are primarily other crowdfunding platforms at a national level (50%) or aninternational level (30%) but also banks and financial institutions (20%).Collaborative networks are more diverse: in addition to other national (19%) or international(6%) platforms, and banks and financial institutions (16%), the platforms indicate othercompanies and professionals (in equal measure, equal to 26%) as collaborative partners, andalso educational institutions and associations (both equal at 16%). Market information andtechnology is the main area identified for opportunities to collaborate.Analysis of Italian Crowdfunding Platforms – Castrataro, Pais – April 2013 12
  • Only three platforms have entered into formal cooperation agreements. In addition to theexchange of information (customer, market, technology and business management), theseagreements are aimed at the acquisition of financial resources, technology and space.Main issues on the Italian crowdfunding marketThe main problems reported by the sector operators are focused on:- Unclear legislation, many believe that the current legislative framework is restrictive andunclear. They also express concern about reduced funding and high taxation (not valid for thedonation based platforms, operating in the non-profit sector)- Difficulties in understanding the basic principles of crowdfunding by project-holders, lack ofstrategy underlying crowdfunding campaigns, myth of the just put it online, hence difficulties forcrowdfunding platform to find quality projects- Lack of web culture. Suspicion and mistrust, digital divide, cultural differences, reluctance toonline donations/payments among Italians- Difficulties in the promotion and dissemination of knowledge about the platform themselvesand crowdfunding in general- Difficulties in networking with experts and operators in the sector- Technical difficulties (especially with payment systems)Some platforms admit to be doing very little to meet these challenges. However, it seems thattheres a growing awareness of the need for promotion and education. Some platforms havereported being very active in this respect, organizing and participating in meetings and publicevents to promote their platform and the culture of crowdfunding in general, trying to get indirect contact with organizations that want to publish projects on their platform. A platformdeclared that they operate project-holders tutoring’. Many rely on advertisement and ViralMarketing, PR, Social Network.The Legal FrameworkThe recently approved legislation on crowdfunding (included in the Law Decree 18/10/2012 n.179, known as Decreto Crescita/Growth Decree 2.0) was seen, by some, as limiting andpotentially harmful because it is too ahead of the market.In addition, the current legislation gives a lot of visibility to equity crowdfunding, leaving thereward-based model in the shadow. According to some respondents, reward-basedcrowdfunding needs at least guidelines in terms of legal and tax matters.The general wish was for clear rules, accessible to all, which at the same time protect theinterests of the less competent. An interesting definition of competent person came up too,Analysis of Italian Crowdfunding Platforms – Castrataro, Pais – April 2013 13
  • which is not part of the traditional concept of professional investor, but is extended to all thosewho have gained the ability to assess a business plan and invest in it.On 29/03/2013, CONSOB, the Italian equivalent of the Securities and Exchange Commission,published the Consultation document on the Regulation implementing Article 30 of the LawDecree n. 179/2012 (Decreto Crescita), which introduced equity crowdfunding in the ItalianTrattato Unico Finanziario (Financial Services Act). The document is now open for publicconsultation until 30 April. These are the key features:- Throughout the CONSOB Regulation emerges a strong will to reduce the administrativeburden in equity crowdfunding, an important requirement if the incremental cost of collectingfunds is to be kept low. So, for example, allowing much of the “paperwork” to be processedonline through the use of certified electronic mail (PEC).- Individuals and institutions that wish to run equity crowdfunding operations must apply to beincluded in a special register that will list all the equity crowdfunding portals. A special sectionwill be reserved for existing banks and financial institutions/intermediaries that inform theCONSOB an interest in becoming crowdfunding platforms. The register is published online andavailable to all.- In order to be included in the register, one must meet the integrity and professionalismrequirements set by CONSOB, as normally required for intermediaries operating in the financialmarkets (banks, investment firms and other intermediaries). Only subjects who can provefairness in business and financial dealings and adequate professional skills can in fact ensurethe efficiency and the optimality of the business operations of a crowdfunding portal. Among theprofessional requirements, there is the ability of the platform owner to assess the businessplans submitted by the startups, from an economic and financial point of view rather than atechnological – innovation one. The CONSOB is required to decide within 60 days of receivingan application if a platform meets the necessary requirements to be admitted to the register.- The operator must provide the so-called retail investors (i.e. non professional investors) with aset of mandatory information in order to make them able to take informed decisions. This meansthat a crowdfunding portal must display the risks connected to investment in startups (eg. loss ofcapital, illiquidity, rarity of dividends, dilution, diversification); information and practicalinstructions about the right of withdrawal; the periodicity and the methods with which they will beprovided with information on the status of pledged, the amount subscribed and the number ofinvestors; fees and costs charged to investors; the applicable law and the competent court; thelanguage or languages in which they are provided with the information concerning the offer. Theretail investor must demonstrate that they understand the nature of the activity of the portal, thenature and specificity of the financial instruments issued by innovative start-ups and the relativerisk of each offer.- Only innovative startups (currently just over 450) can raise money through a crowdfundingportal. This is probably the biggest limitation of the Italian crowdfunding regulation. To qualify asAnalysis of Italian Crowdfunding Platforms – Castrataro, Pais – April 2013 14
  • an innovative startup, the company has to meet the following requirements: the share/quotaholders ( individuals and not entities) shall hold on the date of incorporation and for the following24 months the majority of quotas/shares and majority of voting rights of the ordinary share/quotaholders’ meeting; the company has been incorporated and has been active for a period nolonger than 48 months; starting from the second year of activity, the total value of yearlyturnover shall not exceed €5 million; the company does not distribute profits; the company shallnot result from the merger, division or transfer of business from a going concern; and theexclusive or prevalent business scope of the company is the development andcommercialization of innovative products or services with high technological value. The Start-UpRegulation also introduces the sub-category of the innovative start-up with social purposes.- Each innovative startup can collect shares up to EUR 5 million.- 5% of the totality of the share offer is required to be taken up by “professional investors”,bank foundations, financial institutions for innovation and development or innovative startupsincubators, before the offer is published.- In order to protect retail investors, there is an obligation for innovative start-ups to include intheir statutes or instruments of incorporation the so called tag-along right, thus guaranteeinginvestors a way out should the controlling shareholders sell their shares to a third party after theoffer.The regulation should be implemented by the end of May-early June.For what concerns other regulatory issues, according to some, tax incentives for investments instartups for individuals and companies would help crowdfunding to grow, and it is important thatdeductions for donations are made possible.The response of the donation-based platforms was much more relaxed, since they work in thenon profit sector therefore have no particular taxation problems.Social lending platforms are regulated by the Bank of Italy therefore have no particular legalissues to report.Analysis of Italian Crowdfunding Platforms – Castrataro, Pais – April 2013 15
  • What is crowdfunding according to the players in the sectorWe asked those who filled out the questionnaire to define crowdfunding in a few lines. This tagcloud was created with their answers.Progetti=ProjectsFinanziamento/Finanziare=FundingBasso=BottomRete=NetworkFolla=CrowdIdee=IdeasRaccolta=CollectionRisorse=ResourcesAnalysis of Italian Crowdfunding Platforms – Castrataro, Pais – April 2013 16
  • ConclusionsThe questionnaire was sent in November 2012 and, after 5 months, this update of the analysisconfirms the presence of a buzzing crowdfunding marketplace, which is growing and becomingmore and more complex. The number of platforms is growing, but not in an uncontrolled way:the newly-born platforms further diversify the market and are not only mere copycats of theexisting ones. We also observed a trend towards specialisation and localisation, as well as theentrance in the market of traditional financial actors such as the banks.Last November, the impression was that the market was still immature. After five months, thingshavent changed a lot: there is not the necessary knowledge of the phenomenon among thecrowd, as demonstrated by the fact that if its true that the number of platforms keeps going up,on the other hand the sums raised via crowdfunding are still very low. This suggests a lowparticipation of the crowd, which could be caused by the gap in expertise between crowdfundingplatforms owners and the slow development of a web culture in Italy, prevented by a latenttechnological delay. Even if there are some isolated success cases, like the Palazzo Madama orViceversa campaigns mentioned above, the overall number of projects and raised sums are stillrelatively low in comparison to the global average.Furthermore, a trend that was previously observed is confirmed: the initiatives of Do-It-Yourselfcrowdfunding are growing in number and with a certain success. In the past month, two projectshave been funded with over 80.000E, a sum which is very high in comparison to the ones raisedthrough Italian reward-based crowdfunding platforms. Its not possible yet to define the reasonsbehind this trend, but a diffidence of project holders towards Italian platforms is certainlyemerging. Infact, when not DIY crowdfunding, the second preferred choice seems to be forforeign platforms, among which Kickstarter is the most popular one. The main motivation behindthis is that italian platforms are not seen as enough international therefore they would limit theproject to the national territory. On the other hand, the Italian crowdfunding marketssophistication highlights the expertise accumulated so far and represents a good premise for adynamic and fast development. The recent publication of the regulation on equity crowdfundingwill certainly give a big boost to the Italian market too.We recently registered another important development in Italy. In the last analysis werecommended the development of an educational activity on crowdfunding and the creation ofan independent and impartial association with the objective of promoting crowdfunding culture.To this end, the Italian Crowdfunding Network (www.italiancrowdfunding.org) was born in March2013.Analysis of Italian Crowdfunding Platforms – Castrataro, Pais – April 2013 17