Crowdfunding market analysis and presentation. This presentation shows the emerging crowdfunding trends on google and its importance in Europe. It also presents an overview of the market and its main players.
Le suivi de l’historique du volume transaction de 10 plateformes de crowdfunding en Europe: - Volume cumulé de 259 millions d’euros en avril 2011. - Accélération du montant des fonds levés / mois en 2011 avec environ 10m€ levé par mois par ces plateformes - Zopa & Smava (leaders européens – consumer lending – lèvent à elles seules 8m€ par mois. - La plus part des plateformes on fait leur apparition courant 2010.
KIVA, le poids lourd incontesté du cluster Charities. Lancé en 2005 Les résultats KIVA cette semaine: 11.000 personnes ont fait un prêt (chaque 23 sec) $774K prêté 1.880 projets financés - 2.700 nouveaux inscrits 60.000 membres dans le groupe facebook
Kiva - Un concept nouveau, différent avec un message fort dont la presse parle volontiers. Un décollage du à quelques articles dans la presse suivi d’un effet “boule de neige” - PBS (oct 2006) - over $250,000 is loaned in the week following NYT (mars 2007) - in three days over $250,000 is loaned - ABC World News Story (Juin 2007) - Results in over $100,000 in new loans from 1,000 new members Parallèlement KIVA développe un marketing communautaire « fort » ralliant ses utilisateurs autour d’une cause fédératrice. - Community
Crowdfunding Market Analysis - Mymicroinvest.com
Crowdfunding overview and categories CROWFUNDING Charities Consumer lending Creative suport Business Growth Social cause Financial cause Common interest Socio Economic cause Donation Loan with fixed interest Alternative return Variable return / Equity Since 2005 Since 2005 Since 2008 Since 2010 80% 15% 4% <1% Concept born in the United States where the transaction volume was about 1.16 billion US$ in 2009. Gartner(1) forecasts Crowdfunding volume to read 3.3 billion US$ outstanding loan volume in 2013.. “ Crowdfunding” or “Peer to Peer Lending” can be define as an approach to raising capital required for a new project or enterprise by appealing to large numbers of ordinary people for small transactions. The web-based Crowd Phenomenon has been gaining tremendous momentum over past 24 months. (1) Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company Kiva.org Zopa.com kickstarter.com Mymicroinvest.com Market share
The Crowdfunding concept is emerging in Europe +58% in 9 months The « Crowdfunding » keyword has become a common name on Google database and is related to more than 1.500.000 results. Each month 36.000 researches are made on Google including the keyword Crowdfunding Google trends (chart on the left) shows how researched is the Crowdfunding keywords related to the Google average = Maximum index. . The 10 biggest European Crowdfunding platforms raised 100 million Euros during the last 9 months On average each platform raises approx. 1 million euro per month 45% of researches on that keyword are made from Europe.
A young and innovative crowdfunding market that offers different kinds of investment target FRENCH AND BELGIAN CROWDFUNDING PLATFORMS Financeutile.com Mymicroinvest.com Akamusic.com Sandawe.com Financing target Startups / SME Startups Music Band Comics Localization France Belgium Belgium Belgiun Launch date nov-09 Jan-12 March-08 Jan-10 Minimum invest: 500 € 100 € 5€ 10€ Investment volume 800 000 € NA 1 700 000€ 146 000€ Number of investors registred 4 800 NA 7 000 1 600 Average transaction 2 900€ NA 75 € 200 € Project being financed 4 6 87 6 Years before exit 7 years from 3 to 7 years 5 years 3 years
Volume raised and launch date for players in the consumer lending and business growth category 2005 2006 2007 2009 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 2010 2009 250 500 750 1.000 1.250 1.500 250 500 750 50.000 140.000 K€ K€ Consumer lending platforms Business Growth platforms 13.000
Kiva.org Key figures analysis Kiva's key figures Total value of all loans made through Kiva: $204 799 675 Total capital available: $19 153 837 Number of Kiva Users: 907 213 Number of Kiva Users who have funded a loan: 571 731 Number of loans that have been funded through Kiva: 274 564 Average loan size $381,81 Average total amount loaned per Kiva Lender (includes reloaned funds): $225,80 Average number of loans per Kiva Lender: 6,74 Amount invested per lender $33,5
How medias impact the Kiva’s growth 1 year flat Kick off
Overview of the consumer lending or Peer to Peer lenging players ZOPA SMAVA YES-SECURE.COM RATESETTER QUAKLE Launched: March 2005 March 2007 June 2010 October 2010 October 2010 Members 400 000 21 000 5 145 21 278 Money Matched EUR 141 m EUR 47m EUR 295.000 EUR 827,000 EUR 18,000 Default rate: 0.7pc 0.6pc None. Expected default rate of up to 12pc for higher-risk borrowers None so far, expected rate lower than 1.4pc None. For A and B-rated borrowers it is anticipating a default rate below 1pc; for C and D-rated borrowers less than 3pc Fee paid by lenders: 1pc of the amount lent 1.35pc of the amount lent & 0.5€ / Month 0.9pc 10pc of the interest they receive N/A Fee paid by borrowers: Flat fee of £124.50 once loan is approved 2.5pc of loan once it's agreed (min of 60€) £80 flat £115 flat fee for a three-year loan; £5 monthly charge in the rolling market 1.5pc of loan once it's agreed Profile of borrowers: Only lower-risk borrowers accepted, generally A* to C From A to H (according to SCHUFA criterias) From A* to E Prime risk, primarily A and A* Lower end – 70pc of borrowers are C-rated How checked: credit record through Equifax , Experian or CallCredit. Grade dependent on credit reports from SCHUFA Rating based on CallCredit report. Yes-Secure asks for a copy of their payslip and a recent bank statement Credit reports from Equifax and CallCredit, plus manual assessment. Grade dependent on credit reports from Equifax Average return for lenders: 8.1pc over past year, after charges from 6,2pc 15,2pc Rates advertised from 15pc to 30pc 7pc for three-year loans; 3.3pc in monthly market 23.5pc Fund to cover bad debts: No ? No, but plans to launch one soon (people rated by their community) Yes No
Overview of the main Crowdfunding platform for startups Mymicroinvest.com COFUNDIT FUNDING CIRCLE BELIEVERSFUNDS PROFOUNDER crowdcube.com Launched: January 2012 (BEL) June 2010 (SWLD] August 2010 (UK) October 2010 (BEL) November 2010 (USA) Feb 2011 (UK) Model Equity Debt Debt Preorder / revenue share Revenue share Equity Amount lent/invested to date: NA 250K€ 13m€ (bid on loan requests) 20K€ 237K€ 2,8K€ Nb of investors NA 15 (48 members) 1600 (3.500 members) 1080 262 108 Average invest NA 5.200€ 730€ (Account £3.000) 250€ 900€ 255 € Nb of startups financed NA 1 107 13 11 0 Minimum invest 100 € 2 000 € £20 10USD NA 10£ Description Investment in startups from 100€ (Equity) Business Loans, Expert Analysis and Private Investments using Crowd Funding and Open Innovation Peer to Peer Social Lending to Businesses - People lend to lots of creditworthy businesses to spread their risk connect developers with funders to realize innovative mobile apps for Apple iOS and Android. Raise money for your business. Let your community help. Crowdcube (U.K. only), which will allow funders to purchase equity in startups, although they need to be friends and family Terms 3 to 7 years before exit The loan lasts no more than 3 years Loans last for 1 or 3 years Loans last for 1 to 3 years N/A Type of Startup Youg innovative startups Existing and proved businesses with short term repayement capacity Existing and secured businesses App Builders Entrepreneurs and small businesses Entrepreneurs and small businesses Registration Fee No fee 100 € No fee No fee No fee £250 Financing ranging 100K€ From EUR 100k up to EUR 2.0 Moi up to £50.000 No range From 30K£ to 200K£ Fee paid by investor 5% of funding 5% of funding upfront fee of 2 per cent 21% (VAT) and 4% charged on the pre-orders made by believers ProFounder makes money by charging a 5 percent fee (of a public raise) 5% of funding Fee paid by Startup 10% of amount raised 10% of amount raised Interest rate from 6% to 9% 49€/69 USD to get your project published lat $1,000 fee for any private raises 5% fee (+legal fees of £1750)