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Crowdfunding
in Spain
Annual Report 2016
“Annual report on crowdfunding in Spain for 2016”
2
Authors
Ángel González - Universo Crowdfunding
Javier Ramos - (ICEI) Universidad Complutense de Madrid
Collaborator
Valentí Acconcia - Vannaco
Sponsors
Universo Crowdfunding: http://www.universocrowdfunding.com/
Universo Crowdfunding is the leading crowdfunding website in Spanish language, made up of an
independent and multidisciplinary team, with wide experience in various sectors (including
crowdfunding) that will provide everything necessary for a project to be financed via crowdfunding.
We are economists, computer scientists, journalists, communication and marketing professionals,
entrepreneurs ... a guarantee of success.
Crowdants: http://www.crowdants.com/
It is crowdfunding platform, which allows any individual promoter, association, company or
organization without technical knowledge to create their own crowdfunding platform and host
crowdfunding campaigns, with the support of crowdfunding consultants.
Coavanza: http://coavanza.com/
Crowdfunding platform focuses on small businesses, self-employed, entrepreneurs, artists and
artisans, new innovative and creative products and services, and on all those who want to minimize
risks when launching new businesses, products or services. We are specialists in crowdfunding and
offer consultancy to projects
“Annual report on crowdfunding in Spain for 2016”
3
EXECUTIVE SUMMARY
The year 2016 represents a turning point in crowdfunding in Spain for both
quantitative and qualitative reasons:
• In the last two years, the total amount of money raised through crowdfunding
increased from €52,268,920 in 2015 to €113,592.388 in 2016, which represents a
growth of 116,09%, a significant increase that places Spain among the top six
countries in Europe for volume of revenues raised in crowdfunding projects.
• Over a broader timeframe, this growth is even more significant, as only four years
earlier, in 2013, total revenue amounted to €17,100,000, representing 564.3%
growth between 2013 and 2016.
• Lending platforms (crowdlending) have the highest volume of capital managed
(54% of the money raised in 2016,) followed by real estate crowdfunding (17%),
equity crowdfunding (14%), reward crowdfunding (11%), and donations (4%).
• Although the percentage of reward and donation has decreased comparatively
(reward) or has been comparatively flat (donation), the truth is that these two
modalities continue to grow in absolute numbers, becoming more professionalized
with very consolidated platforms.
• The number of active platforms is in line with the process of diversification and
professionalization in Spanish crowdfunding. In 2016, there were 48 active
platforms, more than last year (43) and much more than 2013, where there were 19
active platforms.
• Crowdfunding is a tool with a significant impact on job creation and should be
increasingly considered a central element in the design and implementation of
active employment policies. From our data, we can conclude that crowdfunding has
created between 5,679 and 12,620 direct jobs in Spain, depending on the counting
criteria chosen. Most are quality jobs, in sectors where traditional financing is
difficult to obtain, such as in some social and cultural sectors.
• These data highlight the growing diversification and strength of housing, equity,
and lending platforms in Spain. This evolution accounts for the increasing
diversification and professionalization that crowdfunding is experiencing. More
and more entrepreneurs, investors, and savers are increasingly seeing crowdfunding
platforms as an alternative to their investment expectations.
• Crowdfunding practices are attracting a new funder profile not only concerned
about the profitability of their investment, the interest on their loans, or how cheap
their purchases are, but also about the values and purposes of the platforms or
projects that they plan to finance. They seek a more proactive and collaborative
“Annual report on crowdfunding in Spain for 2016”
4
relationship between promoters and investors that improves efficiency and
enhances participation. It is what has been called efficiency efficiencracy.
Trends
• 2017 is expected to be a great year for crowdfunding that is predicted to exceed
200 million euros, according to the growth patterns observed over the last five years.
• The Code of Good Practice is increasingly extended and consolidated among
entrepreneurs, investors, and savers in crowdfunding in Spain. This does not mean
that the crowdfunding sector is free of problems related to delinquency, scams, and
non-compliance. Investment and lending platforms certified by the Comisión
Nacional Mercado de Valores (National Stock Market Commission) offer the
greatest guarantees against problems of delinquency and non-compliance.
• Despite the good data, Spain has very serious challenges to face in terms of growth
and consolidation of crowdfunding practices. The Anglo-Saxon countries (USA
and UK) continue to be leaders in crowdfunding, far above the rest of the world.
There is a long way to go for Spanish crowdfunding to catch up.
• The growth of Crowdfunding worldwide continues at a very good pace.
Crowdfunding is becoming more global, especially -focused. In the next few years,
this globalness will be extended to all types of crowdfunding, which will mean that
we can invest in projects of interest in other countries.
• There is currently no European legislation. The European Commission has
decided, for the time being and under various national legislations, not to legislate
the crowdfunding of loans and investment at the European level.
• In the last year, vertical platforms have appeared as a new form of participatory
financing with great potential. Vertical platforms are those platforms that focus
their activity on a sector or are very localized. They can be only for projects in the
music sector, comics, books, or even for SMEs or freelancers, such as the platform
coavanza.com.
The closer the platform is to the community, the more options promoters will have
to fund projects. The trend towards the generation of vertical, thematic, sectorial,
and large-scale platforms is significant. Tools like Crowdants.com, a Spanish
startup that allows you to create your own platform in a few minutes, represent a
new space for diversification and innovation in crowdfunding.
“Annual report on crowdfunding in Spain for 2016”
5
1. Basic concepts
1.1 What is Crowdfunding?
A first look at this financial phenomenon shows its novelty and connection to ICTs that
give it increasing importance as a financing formula. Wikipedia defines it as "collective
cooperation, carried out by people who make a network to get money or other resources.
The Internet is often used in order to finance efforts and initiatives of other people or
organizations."
A more elaborate definition would be that “Crowdfunding is an alternative form of finance
and exchange where those seeking funding and those looking to invest or donate can be
matched. Creators and entrepreneurs can make use of these online crowdfunding platforms
to expand the numbers of potential investors and donors, who finance their online project
via the Internet. And yet, crowdfunding is not just about raising money, but also about
market testing, engaging potential customers and target groups and exploiting the
advantages of community and proximity” (Ramos, 2014)
1
Beyond specificities, most definitions agree on the following elements (Ramos &
Gonzalez, 2015)
2
.
1- It is an economic and efficient way of accessing capital, especially for projects that have
trouble accessing traditional financing channels.
2 - It reduces the risk of investment and provides financing methods adapted to a wide
variety of projects and enterprises, which makes crowdfunding an increasingly attractive
financing method in these times of financial crisis.
3- It makes it possible to avoid traditional financial intermediaries and the costs associated
with these practices.
4- It exploits the advantages of social networks, pre-sales, market research, products, and
word of mouth to reach a growing number of potential financiers in a short time.
5 - Attracts a new profile of financier, unfamiliar with traditional investment formulas and,
at the same time, is increasingly attractive for traditional investors.
1
https://www.researchgate.net/publication/275654399_Crowdfunding_and_the_Role_of_Managers_in_Ensuring_the_Sustainability_of_Crowdfundin
g_Platforms
2
https://www.researchgate.net/publication/275716021_Crowdfunding_and_Employment_An_analysis_of_the_employment_effects_of_Crowdfundin
g_in_Spain
“Annual report on crowdfunding in Spain for 2016”
6
5.1. For new investors, crowdfunding goes beyond profitability, gains, or the
acquisition of a product. It also attracts emotional interest, establishing channels of
identification with the fundamental values and purposes of a platform or a specific project.
5.2. For both new and traditional projects, crowdfunding fosters a different
relationship between promoters and funders. In many cases, funders do not just contribute
capital, but also more proactively get involved in the project by providing ideas and
experiences that improve the quality and attractiveness of the project.
5.3. This breaks the traditional roles that funders, producers, distributors, and
consumers have played. New, mixed formulas, which have as much effect on improving
efficiency as on participation, have appeared.
5.4. It activates what Surowiecki (2004) calls “the wisdom of crowds” and suggests
that the participation of a growing number of people in a concrete project improves its
efficiency and its attractiveness as a participatory project.
5.5. This new economic rationality is generating a particular and very idiosyncratic
way of managing the platforms and the campaigns that are launched on them. There is
growing consensus on the advantages of reinforcing practices of economic efficiency and
democratic participation in what has been called "Efficiencracy" (Ramos, 2014).
1.2. Types of Crowdfunding
Nowadays, collective financing has several aspects, so it is necessary to clarify how many
types of crowdfunding exist. Generally, we will talk about crowdfunding of reward, loans,
donations, and investments.
1.2.1. Reward crowdfunding
At this moment, this is the best known, and is focused on what we might consider the pre-
sale of something: a book, a helmet, a disk, an entry, a product, service, etc. A patron
brings an economic amount and, in return, always receives something, even if only thanks,
although in most cases, they are products or services.
It is important to keep in mind that, like any product or service, it is subject to taxes, the
most important of which is the VAT. The promoters must keep in mind everything related
to taxes, and patron should know it, too.
The people who contribute and receive something in return are called patrons.
1.2.2. Loan crowdfunding (Crowdlending)
“Annual report on crowdfunding in Spain for 2016”
7
This occurs when a person requests an economic amount and forwards the information to
a specialized portal for crowd-financed loans, the crowdlending platform. This portal
usually does a study on the viability of the user and assigns risk levels, also indicating the
interest they will have to pay for the money obtained if they do reach the target. Other
times the lender himself determines the interest to which he will lend the money. It is also
known as crowdlending.
Subsequently the application is posted on the portal, and the lenders decide whether to
lend money (at the interest rate previously described by the platform or themselves) and
how much. If the borrower receives what he has requested, monthly or at the end of the
contract, he will return the money plus interest, which will be proportionately entered into
the account of each lender.
People who give money in exchange for an interest rate are lenders.
1.2.3. Donation crowdfunding
Used mainly by non-profit organizations, these are the same donations that have always
been associated with this type of project, but in this case, with the Internet as a base, and
with publicity done mainly on social networks. The difference with respect to other types
of crowdfunding is that, in this case, the donor does not receive anything material in the
form of pre-sales, but simply the satisfaction of having supported a project that was of
interest to him, and at most, information on the evolution of the project or some incentive
such as plates, T-shirts, visits, etc., but these are not pre-sold items, nor do they have a
lucrative purpose, the way items (products or services) from a for-profit would.
Donated amounts are determined directly by the donor in each case, ranging from € 1 to
thousands of euros. Some platforms deliver "rewards" for a specific contribution of
money, but what is really being made is a donation.
It is interesting to know whether the promoter is listed as an "organization of general
interest," because if so, the donor can receive a tax benefit. We have to look carefully to
see if the platform or project indicates that advantage.
1.2.4. Investment crowdfunding
With unstoppable growth around the world, but limited by various laws, this describes a
person who needs financing for a project, generally an entrepreneur with a valid project,
clients, or invoicing, and who offers shares to people who want to support them, in
exchange for their money. It would be like having shares of that company (like many
startups) for very little money (the promoter sets the value of the shares), and in this way,
we can not only support a project that interests us, but make money in the future, if that
project is a success.
“Annual report on crowdfunding in Spain for 2016”
8
On some platforms, you can already buy shares for €10. This financing option for
companies or organizations, taken by their owners, means a democratization of ownership,
and the possibility to bring much more of it to citizens.
This is also called equity crowdfunding, and people who buy shares are called investors.
Broadly speaking, these are the four most common types of collective financing, but given
the speed with which changes are currently taking place, new options are probably already
being created.
NOTE: Real estate crowdfunding, depending on the study, may be listed within equity
crowdfunding or independently.
1.2.5. Real estate crowdfunding
With only one year of operations in Spain, this has managed to make its main platform the
leader in revenue. In other countries, like the US, its growth is astonishingly high,
considering that these are campaigns where the projects have large amounts of money.
Recall that in Spain, the limit that can be raised by a promoter from non-accredited
investors is €2,000,000, and €5,000,000 from accredited investors. In this first stage,
projects have been launched for the acquisition of houses or properties, but there are
already whole development projects seeking crowdfunding that exceed the limits
mentioned above.
We find different models on different platforms, from those who act as intermediaries,
creating a limited company for each operation, to those that are promoters and contribute
much of the capital required in each campaign.
The National Securities Market Commission and the Bank of Spain are finding it difficult
to certify some of these platforms because of their specifics. Without a doubt, their growth
in a country like Spain will be great.
“Annual report on crowdfunding in Spain for 2016”
9
2- Crowdfunding in the world
According to Massolution3, the crowdfunding sector raised $34 billion in 2015, with
annual increases that double the total funds from the previous year. Thus, in 2012, the
world raised $2.7 billion, which increased to $6.1 billion in 2013 and $16.2 billion in 2014.
This is why it is expected to exceed $100 billion in 2019.
By region, North America is the leader, followed by Asia and Europe, and to a lesser
extent South America, with $85.7 million, Oceania, $68.6 million, and Africa, $24.2
million. These data highlight US leadership in this sector and the consolidation of North
American platforms as the undisputed global leaders.
Source: Massolution
In Europe, the pace of growth is similar to the leading regions. In 2012, 487 million euros
were raised through crowdfunding, 1.127 billion in 2013, 2.833 billion in 2014 and 5.431
billion in 2015.
The Anglo-Saxon economies are undisputed leaders in the sector. The United Kingdom
alone collects around four times more than the rest of the European countries together.
And as we have seen before, North America raises three times more than all of Europe
together, including the UK.
17200
10540
6480
87,7 68,6 24,2
MILLIONS OF DOLLARS COLLECTED BY REGION
North America Asia Europe South America Oceania Africa
“Annual report on crowdfunding in Spain for 2016”
10
Source: Statista
3
Loan platforms are the world's largest fundraisers, far ahead of reward, donation, and
investment platforms, with figures of more than ten times what these platforms receive,
around $2.5 billion each.
Source:Massolution
3
https://www.statista.com/statistics/412372/europe-alternative-finance-funding-amounts-
country/
0
1000
2000
3000
4000
5000 4348
319 249 111 64 52 37 32 24 16 15 13 12 10 973
TOTAL AMOUNT OF MONEY RAISED THROUGH CROWDFUNDING (MILLIONS
EUROS)
Donation
Reward
Loan
Investment
Other
2850
2680
25100
2560
1216
“Annual report on crowdfunding in Spain for 2016”
11
1. Crowdfunding in Spain
1.1. Funds raised
Type of financing
2015
2016
Change
Equity crowdfunding
€6,018,964
€16,078,958
167.14%
Real-estate crowdfunding
-
€19,135,951
-
Crowdlending
€32,792,040
€61,689,491
88.12%
reward
€11,441,006
€12,339,750
7.86%
Donations
€2,214,098
€4,348,238
88,88%
Total
€52,566,108
€113,592,388
116,09%
“Crowdfunding amounted to 113 millions euros in 2016”
For the first time, platforms have surpassed 100 million euros raised in Spain through the
different types of crowdfunding that operate in our country. This is a very remarkable
figure, not just because it is a very important amount, but because it looks like it will
continue to have strong growth in coming years.
Source: UniversoCrowdfunding
“Annual report on crowdfunding in Spain for 2016”
12
Although the regulation passed in 2015 affecting crowdlending and equity crowdfunding
will affect them, considering that very few platforms were certified by the end of 2016,
we believe this has not been a decisive factor in this growth. Rather, we are inclined to
think that the reasons for this growth have more to do with:
Platform Consolidation
Some platforms operating in Spain have been doing so for many years—for example,
Investor Partners, Verkami or Airboribus. They are in a period where looking for stability
is key, as is fomenting knowledge of the brand in project promoters and contributors who
feel more and more comfortable with these platforms, which facilitates their growth.
Crowdfunding Familiarity: Information and formation
More and more people have heard the term “crowdfunding” and begun to have trustworthy
information about the different types of platforms and their operation. Promoters and
campaigns continue to grow, as do contributors, who see them as increasingly common,
usual, and familiar, especially reward and donation crowdfunding.
Arrival of traditional investors
More and more private, institutional, and multi-origin investors are interested in
crowdfunding and have started investing in equity crowdfunding and crowdlending. In
many cases, the investments are tests, to see how it works, find out about its advantages,
margins, etc. In most cases, they repeat.
Increased business interest
In 2016, many companies have become interested in crowdfunding as a financial option
without prejudice towards continuing to work with its usual supplier, traditional banking.
In many cases, the experience has been satisfactory, which means that new companies are
turning to financing and publicity via crowdfunding.
"Revenue through crowdfunding increased by 116% in 2016"
The global crowdfunding sector has experienced an overall growth of between two and
three percent since 2010. It should be noted that the annual amounts raised are increasing,
while the percentage of growth is stable, which means that the money raised practically
doubles compared to previous years.
According to our data, in 2015, 52 million euros were raised in Spain, while in 2016, the
number exceeded 113 million euros, which is not only very significant growth, but
furthermore, the total amount raised this year is more than the total raised in all previous
years combined since 2010.
1.2. % raised by kind of crowdfunding
% Collection
2015
2016
Equity crowdfunding
12%
14%
Real estate crowdfunding
0%
17%
Crowdlending
63%
54%
reward
22%
11%
“Annual report on crowdfunding in Spain for 2016”
13
Donations
4%
4%
“More than 50% of the money raised was loans (crowdlending)"
Half of the funds in 2016 was loans. Initially, platforms such as Comunitae focused on
consumer loans, especially for individuals, but in 2016, platforms emerged that focused
on loans to companies: Loanbook, Comunitae, Circulantis or Arboribus.
The union of consumer and business crowdfunding, supported along the way by the
interest of public and private organizations interested in this investment option, has
facilitated significant growth. With more than 60 million euros raised in 2016,
crowdlending alone brought in as much all crowdfunding modalities in 2015.
Source: UniversoCrowdfunding
The UK is a benchmark in this field, where crowdlending already finances hundreds of
millions of pounds, and it is increasingly common for entrepreneurs and business owners
to go directly to crowdlending platforms, ignoring the choice of traditional banks.
In 2017, most of these Spanish platforms will have the certificate granted by the CNMV
and the Bank of Spain to be able to operate in Spain, which, surely, will provide a new
dose of confidence for lenders when lending money.
Investment crowdfunding is the mode that grew the most in relative terms from 2015
to 2016, reinforcing the idea that both crowdfunding loans and investments are showing
“Annual report on crowdfunding in Spain for 2016”
14
very strong growth. In this case, we are talking about a type of crowdfunding that is
exclusive to companies, since they deliver a number of shares for each contribution.
Source: UniversoCrowdfunding
Although it is already widely used by startups or technology-based companies, more and
more "traditional" organizations use it as a source to finance growth or internationalization
plans.
1.3. Leading platforms
Top 3
2016
2015
1º
2º
3º
1º
2º
3º
Equity
crowdfunding
Socios
Inversores
Crowdcube
capitalcell.net
Socios
Inversores
Crowdcube
The Crowd Angel
Raised
€5,759,500
€4,100,000
€2,042,000
€2,651,964
€2,500,000
€867,000
Real State
Crowdfunding
Housers
Inveslar
Privalore
-
-
-
Colection
€17,404,231
€1,181,720
€550,000
-
-
-
Crowdlending
LoanBook
Comunitae
Circulantis
Comunitae
LoanBook
Circulantis
Raised
€14,000,000
€10,618,000
€9,802,000
€11,493,000
€6,000,000
€5,198,000
reward
Verkami
Kickstarter
Lánzanos
Verkami
El español
Lánzanos
Raised
€5,400,000
€3,498,212
€1,641,594
€4,800,000
€3,606,000
€1,340,580
Donations
Teaming
MiGranoDeArena
Crowdants
Teaming
BBVASuma
Crowdants
Raised
€2,400,000
€1,562,420
€170.934
€1,600,000
€272,698
€146.648
Total
Housers
LoanBook
Comunitae
Comunitae
LoanBook
Circulantis
Raised
€17,404,231
€14,000,000
€10,618,000
€11,493,000
€6,000,000
€5,198,000
Source: UniversoCrowdfunding
“Annual report on crowdfunding in Spain for 2016”
15
“85% of crowdfunding in Spain is equity and lending crowdfunding”
These two types of crowdfunding, both very focused on business, continue growing and
already make up the great majority of the contributions, thanks in large measure to:
Making it possible to invest directly in projects of interest.
Being fast, easy and safe.
Superior profitability over other investment options.
Shorter time to make money.
Investment in accordance with the values of the contributors.
Greater expert advice.
Increasing knowledge about this option among financial professionals in general.
Beginning to be offered as a product for traditional investors.
Banks, venture capital, business angels, and private investors are starting to rely on
these options.
Allows easy distribution of the risk to money invested.
Increasing public-private co-financing of projects.
Reward crowdfunding goes from leader to third place
Reward crowdfunding, which, in 2013, represented 44%, has shrunk to 11% of investment
raised in Spain via crowdfunding in 2016.
As a hypothesis, this may be due to:
• The forceful arrival of crowdlending and equity crowdfunding.
• It is the type of crowdfunding that acts as a gateway to all other types of
crowdfunding.
• Its growth remains and will remain constant and stable. We have to remember
that there are still many sectors that do not have access to this type of
crowdfunding, but could be helped greatly by it.
Reward crowdfunding is the only kind with single-digit growth, 7.86%, although in our
opinion, it still shows a lot of growth, especially in sectors such as entrepreneurialism.
1.4. Active Platforms
Number of active platforms
2015
2016
Equity crowdfunding
10
11
Real State Crowdfunding
0
2
Crowdlending
11
11
Reward
15
14
Donations
7
9
Total
43
47
Source: UniversoCrowdfunding
“Annual report on crowdfunding in Spain for 2016”
16
Source: UniversoCrowdfunding
“Real estate crowdfunding is taking off"
Crowdfunding in real estate already represents 17% of the total raised in Spain with almost
20 million euros. The flagship crowdfunding platform is Housers, a leader in revenue in
2016 in all types of crowdfunding and among all platforms, and it has already begun its
expansion to other countries. With more than 17 million euros accrued, it has risen to the
top of the list after only one year in existence.
“Annual report on crowdfunding in Spain for 2016”
17
4.5. Number of new platforms
Number of new platforms
2015
2016
Equity crowdfunding
1
3
Real estate crowdfunding
1
2
Crowdlending
1
1
Reward
1
-
Donations
3
1
Total
10
4
Source: UniversoCrowdfunding
4.6. Number of platforms that closed in 2016
Number of platforms that closed in 2016
2016
Equity crowdfunding
1
Real estate crowdfunding
-
Crowdlending
2
Reward
3
Donations
2
Total
8
Source: UniversoCrowdfunding
4.7. Number of inactive platforms
Number of inactive platforms
2016
Equity crowdfunding
2
Real Estate Crowdfunding
Crowdlending
Reward
1
Donations
Total
3
Source: UniversoCrowdfunding
The number of crowdfunding platforms active in Spain increased from 43 in 2015 to 47 in 2016.
“Annual report on crowdfunding in Spain for 2016”
18
Source: UniversoCrowdfunding
The rate of failure and closure in the sector is 13%. This figure does not say much by itself,
and requires information on the failure rate of platforms in other countries, especially
crowdfunding leaders.
Source: UniversoCrowdfunding
The largest number of crowdfunding platform closures in 2016 was in reward
crowdfunding, while the largest number of inactive platforms was in equity crowdfunding.
JOBS CREATED
Calculating the jobs created through crowdfunding is a very complex and imprecise task.
There are no data available on this, so we are forced to use the little information that we
have to even get an idea of the labour activity connected with the development of
crowdfunding.
0
2
4
6
8
10
12
14
16
Equity
crowdfunding
Real-estate
crowdfunding
Crowdlending Rewards Donations
2016 2015
2
2
1
3
2
1
0
0
Crowdlending
Donations
Equity crowdfunding
Rewards
Closed Inactive
“Annual report on crowdfunding in Spain for 2016”
19
In some cases, the projects seeking funds are explicit about the number of jobs they are
going to create. Thus, for example, the loan platform “Lendix” offers investment
possibilities in a project to open a franchise of a global restaurant chain in Valencia. It
requests an investment of 1,000,000 euros, and intends to create between 50 and 80 jobs.
This gives us a starting point to calculate the minimum investment amount to create a job.
In this case, that investment would vary between 12,500 euros (1,000,000/80) and 20,000
(1,000,000/50). With these thresholds, we have tried to check the plausibility of the figures
by searching for more projects in other platforms that provide information about the jobs
that have been created. We have found some cases on the investment platform
“SociosInversores” that approach the mentioned benchmarks. Likewise, we have also
found similar projects in the hotel sector that are close to these numbers.
In many other cases, the calculation of the threshold is connected with self-employment
practices and has to do with pre-sales of books, music, or any other tangible object. In this
case, it is not a job that is being created per se, but is an act of investing in an existing job
position, or favouring a specific economic activity.
In this last case, it is certainly difficult to cite a concrete number of job positions, which
does not mean that the potential of crowdfunding in job creation is being ignored. Every
funded project has an implicit number of jobs, although it is difficult to quantify them.
With all these limitations and caveats, we venture to offer three different thresholds that
can give us an approximate idea of how much employment is being created by
crowdfunding in Spain.
“Annual report on crowdfunding in Spain for 2016”
20
Threshold: 20,000
Threshold: 12,500
Threshold: 9000
Direct Jobs
5,679
9,086
12,620
Total raised /20,000
Total raised /12,500
Total raised / 9,000
These data suggest that crowdfunding is a very interesting tool in the policies of job
creation, which allows many projects and entrepreneurs to be born or to keep going with
the support of many people, hence creating wealth and employment.
The future of crowdfunding in Spain: trends and tentative conclusions.
• 2017 is expected to be a great year for crowdfunding that is predicted to exceed 200
million euros, according to the growth patterns observed over the last five years.
• Despite these good data and high expectations, Spain is still far from the Anglo-Saxon
countries, which remain leaders well above Spanish numbers and those of other leading
European countries, like Germany or France.
• Global growth continues at a good pace. Crowdfunding is becoming more global,
especially reward-focused. It is highly likely that in the coming years this globalness will
be extended to all types of crowdfunding, which will mean that we can easily invest in
projects of interest in other countries.
• This can generate tax problems linked to differences in taxes and tax regimes, as well as
problems of transparency in investment. That is why it would be very interesting to
address these issues at the European level and discuss the feasibility of a European
Crowdfunding Area that addresses all these issues. At present, there is no European
legislation. The European Commission has decided, for the time being and under various
national legislations, not to legislate the crowdfunding of loans and investment at the
European level.
• Vertical platforms are one of the latest tools in the sector. The trend towards the creation
of vertical, thematic, sectorial, and large-scale platforms is significant. Tools like
Crowdants.com, a Spanish startup that allows you to create your own platform in a few
minutes, represent a new space for diversification and innovation in crowdfunding.
• After a first phase where crowdfunding platforms of all types were generalists, we are
increasingly finding more thematic, sectoral platforms with very segmented projects. This
trend will continue to grow, because the essence of crowdfunding is the community, and
the closer the platform is to this community, the better it will meet its needs.
• The sector faces a number of important challenges today, such as:
Possible frauds linked to
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Delays in the fulfillment of the obligations established by entrepreneurs and
financiers.
"Setting valuation" (how much is offered for the amount of capital to be raised);
communication between entrepreneurs and financiers after the investment.
Lack of knowledge about codes of good practice.
Increased emphasis by all stakeholders on mitigating risks and potential conflicts
of interest in investors who use private information about the project for their own
benefit.
The limited capacity of the platform to mediate conflicts between entrepreneurs and
funders and other problems of post-collection communication among stakeholders.
Less restrictive legislation that encourages the development of this sector with
important implications for economic growth and job creation.
Greater monitoring of projects funded to check their sustainability.
The uncertain sustainability of the platforms themselves requires more effort on the
part of all the actors involved to encourage the development of this form of
financing.
• Crowdfunding is an engine of economic and social development. Half the revenues from
crowdfunding in Spain were earmarked for financing local businesses in 2016. The
business sector is aware of the potential and advantages of this form of financing, as is
happening in other countries:
Diversification of funding channels
Easy access to new customers
Empowerment of users, whether promotors, investors, lenders, or donors
Ability to get money faster
Ability to get money cheaper than from traditional banking services
Savings of time and resources
The money raised is allowing the independent development of social and cultural
initiatives.
It is an increasingly mature and professionalized sector that shows better metrics
every year. More professionals in crowdfunding are already developing increasing
specializations in the field of management, accounting, law, or consulting. We
highlight the initiative of the Universidad Complutense de Madrid, which launched
the first official degree in Crowdfunding in Spanish language in January 2017.
Spanish crowdfunding is becoming increasingly attractive internationally. Leading
platforms in other markets, such as Kickstarter or Crowdcube, have already
expressed their desire to participate in Spanish crowdfunding, and some of them
already have delegations in Spain.
“Annual report on crowdfunding in Spain for 2016”
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Appendix
Data
This study and the data provided are not considered definitive and closed, since it may be
the case that certain platforms have not provided data or could not have been obtained by
any of the routes used. Therefore, this data collection is open to the reception of new
information to complete it.
They are data, in some cases, approximate, that in no case can make vary tendencies or
general evaluations. If any platform analysed wants to contribute with new data or modify
the existing ones should contact info@universocrowdfunding.com
Ángel Gonzalez and Universo Crowdfunding, as member of the experts working group
who advise the European Commission in Crowdfunding, send the data collected in the
present study to the European Commission, with the aim of facilitating decisions that
promote a growing, strong and dynamic crowdfunding sector in the European Union.
Authors
Ángel González - Universo Crowdfunding
Member of the group of 25 high-level experts selected to advise the European Commission
on the potential of Crowdfunding in the European Union, in order to legislate and promote
this alternative financing option. Member of the European Crowdfunding Stakeholder
Forum (ESCF) at European Commission. Founder of Universo Crowdfunding, the
consultant specialized in crowdfunding, with advisory services, consultancy, training and
information portal where there are more than 400 articles on crowdfunding. Founder of
Crowdants.com, the crowdfunding platform that allow no professional users to generate
their crowdfunding platform or campaign in an easy and fast manner without technical
knowledge. This way each person and/or community can have its own autonomous,
flexible and independent platform. Promotor of the campaign “Yo apoyo la Financiación
Participativa” "I support crowdfunding" launched in early 2013 that sought to promote
crowdfunding via legislation of good crowdfunding practices in Spain and Europe, which
was supported by more than 100 organizations in the sector. This campaign encourages
Spanish government and local authorities to launch Spanish own legislation since April
2015.
Javier Ramos - ICEI - Universidad Complutense de Madrid
Javier Ramos holds a PhD in Social Sciences from the European University Institute in
Florence. He is currently a researcher at the Complutense Institute of International Studies
(ICEI). He has been a professor in universities and research centers in Spain and abroad,
such as the ZDA- University of Zurich, Pompeu Fabra University Barcelona, University
of Geneva, German Development Institute-Bonn, Universidad Mayor de San Andres-
“Annual report on crowdfunding in Spain for 2016”
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Bolivia, Universidad de la Republica UDELAR- Uruguay. He has combined his academic
activities with an important institutional experience as a Diplomatic Adviser in the
Ministry of Labor and Immigration (March 2009 - January 2011) and as Counselor in the
Presidency of the European Parliament (2005-2007). His subjects of professional interest
have to do with the Economic Policy of Globalization and the EU, the European Strategies
of Competitiveness and Growth (Lisbon Strategy, Europe 2020) and Social Innovation
and the new democratic / collaborative economy (Digital Democracy, Eco-digital
transition, new forms of funding (crowdfunding) and employment (coworking), etc.
Universe
The present research focuses on the platforms that operate in Spain, with projects of
promoters with origin in Spain. They have contacted platforms that, at least, have financed
more than 3 projects in 2016.
Types of platforms included
Based on various studies promoted by the European Commission, we have focused our
attention on the following types of crowdfunding:
• Crowdfunding of rewards-pre-sales
• Crowdfunding of donations
• Investment crowdfunding
• Crowdfunding of loans:
Intended for consumption
Intended for companies
• Crowdfunding real estate
Purpose of the Report
This work, promoted and coordinated by the consultancy Universo Crowdfunding in
collaboration with Universidad Complutense de Madrid, through the Complutense
Institute of International Studies, tries to be an objective, dynamic and practical space,
allowing the collection of truthful and clear data on the evolution of the crowdfunding
sector in Spain.
In our opinion, based on the experience that Universo Crowdfunding and the Universidad
Complutense has had in the field of participatory financing in Spain since 2010, there is a
strong lack of analysis and information collected, which we try to provide and improve
with the present study. Fortunately, the search for transparency is an element that more
and more platforms are looking for, which facilitates the collection of data.
Technique used
• Survey and interviews via mail or telephone.
Requested data
Total money finally executed or raised on his/her platform in 2016.
Other information they consider interesting
Origin of data
“Annual report on crowdfunding in Spain for 2016”
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• Provided directly by the platforms.
• Public information about the platform. Normally visible on the platform itself.
• Estimation.
“Annual report on crowdfunding in Spain for 2016”
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