Crowdinvesting - Romania

Romania

Highlights

The Crowdinvesting market in Romania is expected to reach a total transaction value of US$3.39m in 2024.
When compared globally, the United Kingdom leads with a transaction value of US$608m in the same year.
Romania's crowdinvesting market is rapidly expanding, offering diverse opportunities for capital raising in innovative local ventures.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

Crowdinvesting, also known as equity crowdfunding, is a growing trend in Romania. This alternative form of financing allows individuals to invest in early-stage companies in exchange for equity. The Crowdinvesting market in Romania is developing rapidly due to several key factors.

Customer preferences: Romanian investors are increasingly attracted to the potential returns and diversification opportunities offered by crowdinvesting. They are looking for alternative investment options that can provide higher yields than traditional investment vehicles such as savings accounts or government bonds. Crowdinvesting allows them to invest in promising startups and potentially benefit from their growth.

Trends in the market: One of the main trends in the Romanian crowdinvesting market is the emergence of specialized platforms catering to specific industries. These platforms focus on sectors such as technology, renewable energy, and real estate, allowing investors to choose projects that align with their interests and expertise. This trend reflects the growing maturity of the market and the increasing demand for niche investment opportunities. Another trend is the rise of cross-border crowdinvesting. Romanian investors are not limited to investing in local startups but can also participate in crowdfunding campaigns from other countries. This trend is facilitated by the globalization of crowdinvesting platforms and the ease of online transactions. It allows Romanian investors to access a wider range of investment opportunities and diversify their portfolios internationally.

Local special circumstances: Romania has a vibrant startup ecosystem, with a growing number of innovative companies seeking funding. The government has also introduced incentives and support programs to encourage entrepreneurship and attract foreign investment. These factors create a favorable environment for crowdinvesting, as there is a steady supply of investment opportunities for individuals looking to invest in early-stage companies.

Underlying macroeconomic factors: The Romanian economy has been experiencing steady growth in recent years, which has boosted investor confidence and disposable income. This economic stability provides a solid foundation for the crowdinvesting market to thrive. Additionally, low interest rates and limited investment options in traditional financial markets make crowdinvesting an attractive alternative for investors seeking higher returns. In conclusion, the Crowdinvesting market in Romania is developing rapidly due to customer preferences for higher returns and diversification, the emergence of specialized platforms, the rise of cross-border crowdinvesting, a vibrant startup ecosystem, and underlying macroeconomic factors such as economic stability and low interest rates. These factors create a favorable environment for crowdinvesting to flourish in Romania, providing investors with new opportunities to support innovative companies and potentially benefit from their growth.

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.