CrowdLending (Business) - Ireland

The total transaction value in the Crowdlending (Business) market market in Ireland is expected to reach US$19.83m by 2024.
When comparing globally, it is evident that China leads with a transaction value of US$16bn in 2024.
Ireland's CrowdLending market is seeing a surge in small and medium enterprises utilizing online platforms for efficient capital raising.

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 Ireland has been experiencing significant growth in recent years.

Customer preferences: Irish businesses are increasingly turning to CrowdLending as a source of funding due to its numerous benefits. CrowdLending platforms offer businesses a quick and efficient way to access capital, often with lower interest rates compared to traditional bank loans. Additionally, businesses can tap into a wider pool of potential lenders, allowing them to secure funding even if they have been turned down by traditional lenders. This flexibility and accessibility have made CrowdLending an attractive option for many Irish businesses.

Trends in the market: One of the key trends in the Irish CrowdLending market is the rise of sector-specific platforms. These platforms cater to businesses in specific industries, such as technology, renewable energy, or agriculture. By focusing on a particular sector, these platforms can better understand the needs and risks associated with businesses in that industry, leading to more tailored lending solutions. This trend reflects the growing demand for specialized financing options in Ireland. Another trend in the Irish CrowdLending market is the increasing participation of institutional investors. As the market matures, institutional investors such as pension funds and insurance companies are recognizing the potential of CrowdLending as an asset class. These investors bring additional capital and expertise to the market, further fueling its growth. Their involvement also signals the growing acceptance and credibility of CrowdLending as a legitimate financing option.

Local special circumstances: Ireland's strong entrepreneurial culture and vibrant start-up ecosystem have contributed to the growth of the CrowdLending market. The country has a high number of small and medium-sized enterprises (SMEs) that often face challenges in accessing traditional financing. CrowdLending provides these businesses with an alternative source of funding, enabling them to grow and contribute to the Irish economy. Furthermore, the Irish government has been supportive of the fintech sector, creating a favorable regulatory environment for CrowdLending platforms. This has encouraged the establishment and growth of these platforms in Ireland, attracting both domestic and international players to the market.

Underlying macroeconomic factors: The growth of the CrowdLending market in Ireland is also driven by macroeconomic factors. The country's strong economic performance and low interest rate environment have created favorable conditions for businesses to seek financing. Additionally, the uncertainty surrounding Brexit has led some businesses to explore alternative funding options, such as CrowdLending, to mitigate potential risks. In conclusion, the CrowdLending (Business) market in Ireland is experiencing significant growth due to customer preferences for quick and accessible funding, the rise of sector-specific platforms, and the increasing participation of institutional investors. Ireland's strong entrepreneurial culture, supportive government policies, and favorable macroeconomic conditions have also contributed to the market's development.

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.