CrowdLending (Business) - Sweden | Statista Market Forecast

The total transaction value in the Crowdlending (Business) market market in Sweden is projected to reach US$25.47m in 2024.
When compared globally, it is evident that China leads with a transaction value of US$16bn in 2024.
In Sweden, the CrowdLending market for capital raising is experiencing a surge in interest from tech startups seeking alternative funding sources.

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 Sweden has seen significant growth and development in recent years.

Customer preferences: Swedish businesses have shown a strong preference for CrowdLending as a means of accessing financing. This can be attributed to several factors. Firstly, CrowdLending platforms offer a convenient and efficient way for businesses to raise capital, without the need for traditional banks or financial institutions. This appeals to businesses that may have difficulty obtaining loans through traditional channels, or who prefer a more streamlined and transparent lending process. Additionally, CrowdLending allows businesses to tap into a wider pool of potential investors, increasing their chances of securing funding.

Trends in the market: One key trend in the CrowdLending market in Sweden is the increasing participation of institutional investors. As the market has matured, institutional investors such as pension funds and insurance companies have recognized the potential returns offered by CrowdLending. This has led to larger loan volumes and a more diverse range of investment opportunities for businesses. Furthermore, the presence of institutional investors has helped to improve the overall credibility and stability of the CrowdLending market in Sweden. Another trend is the emergence of specialized CrowdLending platforms catering to specific industries or sectors. These platforms offer tailored financing solutions and expertise to businesses operating in niche markets. This trend reflects the growing demand for industry-specific financing options and the recognition that a one-size-fits-all approach may not be suitable for all businesses.

Local special circumstances: Sweden has a well-developed and highly digitalized financial sector, which has facilitated the growth of the CrowdLending market. The country has a high level of internet penetration and a tech-savvy population, making it an ideal environment for online lending platforms to thrive. Additionally, Sweden has a strong culture of entrepreneurship and innovation, which has contributed to the demand for alternative financing options such as CrowdLending.

Underlying macroeconomic factors: The strong performance of the Swedish economy has also played a role in the development of the CrowdLending market. Sweden has experienced steady economic growth in recent years, with low interest rates and a stable business environment. This has created favorable conditions for businesses to seek financing and for investors to participate in the CrowdLending market. Furthermore, the Swedish government has implemented policies to support small and medium-sized enterprises, which has further boosted the demand for alternative financing options. In conclusion, the CrowdLending (Business) market in Sweden has experienced significant growth and development, driven by customer preferences for convenient and efficient financing options, the increasing participation of institutional investors, the emergence of specialized platforms, the country's well-developed financial sector, and the favorable macroeconomic conditions.

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.