Market Insights Financial Capital Raising Digital Capital Raising

Reward-Based Crowdfunding - Luxembourg

Luxembourg

in Luxembourg, a country known for its vibrant financial services sector, is projected to see a total transaction value in the Reward-Based Crowdfunding market reach US$0.59m in 2024.
When compared globally, it is evident that the United States leads with the highest transaction value of US$465m in the same year.
Luxembourg's Capital Raising market sees a rise in Crowdfunding platforms catering to the country's vibrant financial services industry.

Key regions: Germany, Brazil, Australia, Israel, United States

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Analyst Opinion

The Crowdfunding market in Luxembourg has been experiencing significant growth in recent years, driven by customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Luxembourg has a highly educated and affluent population, which has contributed to the growth of the Crowdfunding market. Investors in Luxembourg are increasingly looking for alternative investment opportunities, and Crowdfunding provides them with a way to diversify their portfolios and support innovative projects. Additionally, the younger generation in Luxembourg is more open to new investment models and is actively seeking out Crowdfunding platforms to invest in.

Trends in the market: One of the key trends in the Crowdfunding market in Luxembourg is the rise of equity-based Crowdfunding. Investors are increasingly interested in owning a stake in the companies they support, and equity-based Crowdfunding allows them to do so. This trend is fueled by the success stories of startups that have been funded through Crowdfunding and have gone on to achieve significant growth and success. Another trend in the market is the emergence of niche Crowdfunding platforms catering to specific sectors or industries. These platforms provide a targeted and specialized approach to Crowdfunding, allowing investors to support projects that align with their interests or values. This trend has been particularly prominent in sectors such as renewable energy, social impact, and technology.

Local special circumstances: Luxembourg's position as a financial hub in Europe has played a significant role in the development of the Crowdfunding market. The country has a well-established financial services sector and a supportive regulatory framework, which has attracted Crowdfunding platforms to set up operations in Luxembourg. The presence of these platforms has not only provided investors with more options but has also contributed to the overall growth and maturity of the Crowdfunding market.

Underlying macroeconomic factors: Luxembourg's strong economy and stable political environment have created a favorable climate for the Crowdfunding market to thrive. The country has a high GDP per capita and a low unemployment rate, which has increased disposable income and investor confidence. Additionally, Luxembourg's strategic location in the heart of Europe and its strong ties to neighboring countries have attracted cross-border investments, further fueling the growth of the Crowdfunding market. In conclusion, the Crowdfunding market in Luxembourg is experiencing significant growth due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. The rise of equity-based Crowdfunding, the emergence of niche platforms, Luxembourg's position as a financial hub, and the country's strong economy all contribute to the development of the Crowdfunding market in Luxembourg.

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.