The Main Equity Crowdfunding Trends Worldwide 

Democratizing alternative investment 

Equity Crowdfunding and its first time 

For many companies, Equity Crowdfunding has already become their first interaction with professionally financed vehicles. Over 60% of companies have been funded for the first time through crowdfunding in the U.S. last year. If we had talked about this data 10 years ago, we know that percentage would have been residual. 

Democratizing alternative investment 

Until now the investment in startups, even in very early stages, was practically reserved exclusively to Business Angels, with contributions that could be of €20,000, or venture capital, with minimum tickets of €200,000. 

So that, most potential investors interested in a particular project could only invest in those companies that had already become unicorns, companies that were no longer startups, or directly when they went public (IPO)… Companies where valuation would be very high and the potential profitability lower compared to other types of companies. 

However, Equity Crowdfunding platforms allow anyone with very little money (since they can buy tickets from 300 euros onwards) to invest in future projects and support entrepreneurs at the right time. 

The Equity is here to stay 

Alternative investment market has been growing at double digits annually during the last 5 years. What is more, it is foreseeable that there will be an even greater growth in most developed countries. 

According to the World Bank report, the Equity Crowdfunding market could reach $93 billion by 2025. This proof the potential of this funding source that is so interesting for all. 

In Felllow Funders we think that the market in Spain could be much more expansive. While also improving the taxation for investors, and if possible, while allowing a wider over-subscription. It should be reminded that rounds in Spain are currently limited to the acquisition of up to 125% above the target. 

A good reference would be the example of the United Kingdom, where tax incentives for investors are more attractive. It could be mentioned that of the Enterprise Investment Scheme or the Seed Enterprise Investment Scheme (deduction of 50% of contributions made to early-stages companies). 

We are completely aware that our market is still in process of expansion. But with the collaboration of private institutions and organizations, we continue to progress every day towards our goal of DEMOCRATIZING the Alternative Investment.