Market for crowdfunding is growing significantly
Financing and donations via the Internet reached a volume of CHF 791.8 million last year. This is a significant increase of 31 percent compared to 2020. In particular, crowdfunding of real estate has gained in importance, as a study by the Lucerne University of Applied Sciences and Arts shows.
The market for swarm financing grew significantly last year from CHF 606.6 to 791.8 million. According to a media release in the current crowdfunding monitor of the Institute for Financial Services Zug (IFZ), the Lucerne University of Applied Sciences and Arts found that this corresponds to growth of almost a third and represents another record value.
Accordingly, the market for crowdlending, i.e. the brokering of funds for loans via online platforms to private individuals and companies, increased significantly by 35 percent and rose to CHF 607 million. The market for crowd investing, i.e. the online brokerage of investments in companies and real estate, grew to CHF 147 million. “In particular, investments in loans to real estate companies and direct investments in real estate have driven this growth,” says the press release.
The volume of digital donations, known as crowddonating, and financial support for creative and cultural projects and campaigns via the internet, known as crowdfunding, on the other hand fell by 16 percent and was only CHF 38 million in 2021. The reason for this is that these two types of crowdfunding had recorded record values in the previous year due to the Corona crisis and several temporarily active crowdfunding platforms. Nevertheless, political campaigns generated significantly more money via crowdfunding in 2021. Here the volume rose from 90,000 to 800,000 francs.
The authors of the study assume that the total volume of swarm financing on the Internet will increase to more than CHF 1 billion this year.