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Crowdinvesting - Germany

Germany

Germany is expected to see a total transaction value of US$51.72m in the Crowdinvesting market by 2024.
When compared globally, the United Kingdom is projected to reach the highest transaction value of US$608m in 2024.
Germany's growing interest in crowdinvesting for capital raising reflects a shift towards a more inclusive and diverse investment landscape in the country.

Key regions: Europe, Australia, Brazil, China, Israel

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Analyst Opinion

The Crowdinvesting market in Germany has been experiencing significant growth in recent years, driven by various factors.

Customer preferences: One of the key reasons behind the development of the Crowdinvesting market in Germany is the increasing preference of customers for alternative investment options. Traditional investment avenues such as stocks and bonds have become less attractive due to low interest rates and market volatility. As a result, individuals are seeking out new ways to invest their money and generate higher returns. Crowdinvesting provides them with an opportunity to invest in innovative startups and projects, allowing them to diversify their investment portfolio and potentially earn higher profits.

Trends in the market: A major trend in the Crowdinvesting market in Germany is the focus on sustainability and social impact. Investors are increasingly interested in supporting projects and companies that align with their values and contribute to positive change. This has led to the rise of impact investing, where individuals invest in businesses that have a social or environmental mission. The German market has seen a surge in crowdinvesting platforms that specialize in sustainable and impact-focused projects, catering to the growing demand for responsible investments. Another trend in the market is the emergence of sector-specific crowdinvesting platforms. These platforms focus on specific industries such as real estate, renewable energy, or technology startups. By catering to the specific needs and interests of investors in these sectors, these platforms have gained popularity and facilitated the growth of crowdinvesting in Germany. Investors are attracted to these platforms as they provide them with access to investment opportunities in sectors they are passionate about and have expertise in.

Local special circumstances: Germany has a strong startup ecosystem, with Berlin being one of the leading startup hubs in Europe. This has created a favorable environment for crowdinvesting, as there are a plethora of innovative startups seeking funding. The German government has also implemented various initiatives to support the growth of startups and small businesses, providing them with access to funding and resources. This has further fueled the development of the Crowdinvesting market in Germany, as investors are presented with a wide range of investment opportunities.

Underlying macroeconomic factors: The low interest rate environment in Germany has played a significant role in the growth of the Crowdinvesting market. With traditional savings accounts and bonds offering minimal returns, individuals are turning to alternative investment options to generate higher profits. Crowdinvesting provides them with the potential for higher returns, albeit with higher risk. Additionally, the strong economic performance of Germany has instilled confidence in investors, leading them to explore new investment avenues such as crowdinvesting. In conclusion, the Crowdinvesting market in Germany is developing rapidly due to customer preferences for alternative investments, trends towards sustainability and sector-specific platforms, local special circumstances such as a strong startup ecosystem, and underlying macroeconomic factors such as low interest rates and a robust economy. These factors have created a fertile ground for the growth of crowdinvesting in Germany, attracting both investors and entrepreneurs alike.

Methodology

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.