CrowdLending (Business) - Austria

The projected total transaction value in the Crowdlending (Business) market market in Austria is expected to reach US$20.08m in 2024.
When looking at a global scale, it is evident that China leads with the highest transaction value of US$16bn in 2024.
Austria's CrowdLending market in Capital Raising is experiencing a surge in investor interest, driven by the country's stable economy and favorable regulatory environment.

Definition:

Crowdlending platforms, otherwise know as lending-based Crowdfunding enable small and medium-sized enterprises to get loans from single or multiple, private and institutional investors via an online brokering platform. On credit platforms such as Funding Circle, OnDeck, Kabbage and Lending Club, businesses can obtain small loans up to a set maximum value. As a rule, financing requests are analyzed by the provider via an internal scoring system and are checked against additional minimum requirements such as turnover. Subsequently, these financing requests can be invested in by private and institutional investors at an appropriate interest rate determined by the credit rating of the company. This makes it possible for SMEs to borrow quickly and easily, as the basic requirements for obtaining finance are more flexible compared to traditional bank loans.

Alternative financing for SMEs and freelancers (bank-independent loans)
Small business loans issued by single or multiple private and institutional investors (non-banks)
Online loan request, scoring and approval

Traditional bank loans
Consumer loans and credit card transactions
Business-to-Business credit scoring and rating services
Online marketplaces for consumer loans (see Marketplace Lending)

The CrowdLending (Business) market in Austria is experiencing significant growth and development, driven by various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In Austria, businesses are increasingly turning to CrowdLending as a financing option due to its convenience and accessibility. CrowdLending platforms provide an alternative to traditional banks, allowing businesses to easily access capital without the need for lengthy loan application processes. Additionally, many businesses appreciate the transparency and flexibility offered by CrowdLending platforms, as they can choose the terms and conditions that best suit their needs.

Trends in the market: One of the key trends in the CrowdLending market in Austria is the rise of peer-to-peer lending platforms. These platforms connect individual investors with businesses in need of funding, creating a direct lending relationship. This trend is driven by the desire for businesses to access funding quickly and easily, as well as the increasing popularity of alternative investment options among individual investors. Another trend in the market is the emergence of specialized CrowdLending platforms that cater to specific industries or sectors. These platforms focus on connecting businesses in niche markets with investors who have a particular interest or expertise in those areas. This trend reflects the growing demand for tailored financing solutions and the recognition that different industries have unique funding requirements.

Local special circumstances: Austria's strong entrepreneurial culture and supportive business environment contribute to the growth of the CrowdLending market. The country has a high number of small and medium-sized enterprises (SMEs) that often struggle to access traditional financing options. CrowdLending provides these businesses with an alternative source of funding, allowing them to grow and thrive. Furthermore, Austria's stable economic and political environment makes it an attractive market for both businesses and investors. The country's strong legal framework and investor protection regulations provide confidence and security for participants in the CrowdLending market.

Underlying macroeconomic factors: The development of the CrowdLending market in Austria is also influenced by underlying macroeconomic factors. Low interest rates in the country and the broader Eurozone have made traditional bank loans less attractive for businesses, leading them to explore alternative financing options such as CrowdLending. Additionally, the digital transformation of the financial sector has facilitated the growth of online lending platforms, making it easier for businesses to access financing. In conclusion, the CrowdLending (Business) market in Austria is experiencing significant growth and development due to customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Businesses in Austria are increasingly turning to CrowdLending as a convenient and flexible financing option, while peer-to-peer lending platforms and specialized industry-focused platforms are gaining popularity. Austria's supportive business environment and stable economy further contribute to the growth of the CrowdLending 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.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Crowdfunding is the collective effort of a large number of individuals who network and pool small amounts of capital to finance a new or existing business venture. Each campaign is set for a goal amount of money and a fixed timeframe, each day is counted down and the money raised will be tallied up for visitors to follow its success. The size of the global crowdfunding market is growing and the largest markets are North America and Asia.