Crowdinvesting - Eastern Europe

Eastern Europe

Highlights

The total transaction value in the Crowdinvesting market in Eastern Europe is forecasted to reach US$16.78m in 2024.
When compared globally, the United Kingdom is expected to have the highest transaction value, reaching US$608m in 2024.
Crowdinvesting in the Capital Raising market in Poland is gaining momentum, with a surge in platforms offering diverse investment opportunities to the public.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Crowdinvesting market in Eastern Europe has been experiencing significant growth in recent years.

Customer preferences: One of the main reasons for this growth is the increasing interest and demand from customers in Eastern Europe for alternative investment opportunities. With traditional investment options becoming increasingly saturated, customers are looking for new ways to diversify their portfolios and potentially earn higher returns. Crowdinvesting offers them the opportunity to invest in a wide range of projects and startups, allowing them to support innovative ideas and potentially benefit from their success.

Trends in the market: One of the key trends in the Crowdinvesting market in Eastern Europe is the rise of technology-focused platforms. As the region becomes more digitally connected, investors are increasingly turning to online platforms to find and invest in projects. These platforms provide a convenient and accessible way for investors to browse and invest in a wide range of projects, from tech startups to real estate developments. Another trend in the market is the growing popularity of equity-based Crowdinvesting. While debt-based Crowdinvesting has traditionally been more common in the region, there is a growing interest in equity-based investments. This allows investors to become shareholders in the projects they invest in, giving them the potential for higher returns if the project is successful.

Local special circumstances: One of the factors contributing to the growth of the Crowdinvesting market in Eastern Europe is the region's vibrant startup ecosystem. Countries like Estonia, Poland, and Romania have seen a surge in entrepreneurial activity in recent years, with many innovative startups emerging. This has created a fertile ground for Crowdinvesting, as investors are eager to support these startups and potentially benefit from their growth. Additionally, the relatively low cost of living and business expenses in Eastern Europe make it an attractive destination for startups. This has led to an increase in the number of projects seeking funding through Crowdinvesting platforms, further driving the growth of the market.

Underlying macroeconomic factors: The overall economic growth and stability in Eastern Europe have also played a role in the development of the Crowdinvesting market. As the region continues to recover from the global financial crisis, investors are becoming more confident in the opportunities available. This has led to an increase in the amount of capital being invested in Crowdinvesting projects. Furthermore, the supportive regulatory environment in Eastern Europe has also contributed to the growth of the market. Governments in the region have recognized the potential of Crowdinvesting as a source of funding for startups and have implemented regulations to facilitate its growth. This has provided investors with a level of confidence and security, further driving the development of the market. In conclusion, the Crowdinvesting market in Eastern Europe is experiencing significant growth due to customer preferences for alternative investment opportunities, the rise of technology-focused platforms, and the growing popularity of equity-based investments. The region's vibrant startup ecosystem, relatively low cost of living, and supportive regulatory environment have also contributed to the development of the market.

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.