Crowdfunding in the EU 2025 ESMA Data: Trends, Volumes and Impacts on Startups and Investors

The European crowdfunding market is solidifying its position as a structural financing channel for startups and SMEs, according to ESMA in the report Crowdfunding in the EU 2025. The analysis, based on 2024 data, highlights significant figures: 181 authorized providers raised over €4.25 billion across 21 Member States.

A system on the rise and consolidation

In 2024, loan-based crowdfunding remains the backbone of the sector, with 58% of the capital raised flowing into loan-based projects, followed by debt-based crowdfunding with 23% and equity crowdfunding with 12%. From the supply side, 137 operators out of 181 offer a single funding model, while a minority adopts a multi-model approach, in line with the possibilities foreseen by the ECSPR.

Funding models and volumes

Overall, 181 authorized providers raised over €4.25 billion across 21 Member States in 2024. The analysis highlights a stabilization of market preferences and a certain diversification of funding modalities, with equity-based remaining a residual voice relative to loan-based. From the supply side, there is concentration in a few operators offering multiple models, but the majority continues to operate with a single main instrument, signaling a period of consolidation and specialization.

Size, projects and investors

During 2024 more than 10,000 loan-based projects were intermediated, involving over 5.5 million investors. The average amount per project remains modest for loans, about €240,000, while for debt-based projects higher average tickets are recorded (€770,000) and examples of equity-based around €640,000. These figures confirm that crowdfunding remains particularly suitable for funding early-stage or small-scale initiatives, enabling a faster route to capital compared with traditional banking channels.

Sectors and investor participation

From a sectoral perspective, professional, scientific and technical activities absorb the largest share of capital, with about €1.35 billion, equal to almost one-third of the total. Following are construction-related projects, with about €1.04 billion. In terms of the number of investors, real estate remains the most participated sector, with about 1.45 million investors involved. The existence of broad and varied demand indicates crowdfunding's ability to democratize access to real estate investments, traditionally reserved for institutional entities or more complex investment vehicles.

Retail investors and geographic dynamics

A structural feature of European crowdfunding is the strong presence of retail investors, who represent 88% of the total investor base. Sophisticated investors account for 11% and professional ones 1%. The average investment per retail investor is estimated at around €660, compared with €2,660 for sophisticated investors and €1,510 for professionals, confirming the widespread role of micro-investing as a participation channel and a means to grow the capital pool available for projects with varying risk levels.

Geography of crowdfunding: concentration and national differences

The European market appears highly concentrated: France, the Netherlands, Spain, Italy and Lithuania together account for more than eighty percent of the capital raised in 2024. France leads the ranking with €1.45 billion, followed by the Netherlands with €1 billion. It's interesting to note that while in France debt-based crowdfunding is the main instrument, in other markets the loan-based model dominates. Lithuania stands out for the number of intermediated projects thanks to a favorable regulatory framework operating since 2017, well before European harmonization. A market still highly heterogeneous and transitioning toward greater regulatory harmonization.

Cross-border investing still limited

Despite ECSPR's aim to foster a single market, cross-border activity remains limited: on average, only 8% of funds raised come from investors resident in another country, primarily within the European Economic Area. Some markets like Malta and Estonia show a strong international orientation, while large countries remain largely domestic, signaling that cultural, linguistic, and brand trust barriers weigh more than full regulatory harmonization.

Technology and artificial intelligence on platforms

A significant chapter of the report is devoted to the adoption of artificial intelligence on platforms. A survey of 20 European platforms shows that AI is used mainly for operational and back-office tasks, such as information synthesis, automatic translation, code generation, KYC management, and customer support. The most widespread technologies include Generative AI, NLP, and agent-based solutions, with automation levels generally modest and always supervised by humans. Most providers rely on models developed by third parties, often in the cloud, underscoring an ecosystem still heavily dependent on external infrastructure.

Outlook for startups and investors

Overall, the picture outlined by the ESMA Market Report shows a growing but increasingly mature and regulated sector. For startups and SMEs, crowdfunding remains an effective capital-raising tool, especially in early stages and for projects with a strong territorial or community-driven component. For investors, particularly retail, the challenge remains balancing accessibility and protection, in a context where European regulation continues to strengthen transparency and operating standards. The next year could be a pivotal moment for moving from an emerging market to a complementary financial infrastructure in the European landscape. It should be noted that this report refers to 2024, a long time ago given how quickly markets evolve and often change direction.

Critical analysis and debate

The role of crowdfunding in 2025 should be evaluated from multiple perspectives. On one hand, access to less traditional sources of capital can accelerate the growth of startups in high-impact sectors and drive technological innovation in less advantaged regional contexts. On the other hand, market fragmentation and the presence of many platforms pose risks of dispersion and lack of uniform transparency standards. Regulation, such as ECSPR, seeks to harmonize practices and investor protection but remains to be seen if full standardization can be achieved quickly. Moreover, reliance on retail capital requires financial education mechanisms to avoid impulsive or uninformed decisions. Some argue that cross-border growth could open opportunities, others fear geographic concentration in a few markets could limit accessibility in less mature nations. Finally, the integration of AI on platforms raises questions about accountability, transparency and risk control, especially in regulated contexts like fund management and KYC. These debates are central to shaping a crowdfunding infrastructure that can sustainably support startups.

A perspective for the future

Looking ahead, crowdfunding could solidify as a pillar of European financing, offering alternative channels to traditional venture capital for projects with strong territorial or community components. Platforms that manage to combine transparency, investor protection and risk management tools will have greater opportunities to grow and attract capital, even cross-border. For startups, understanding prevailing funding models, potential investors and geographic dynamics becomes essential to define a capital-raising strategy that accounts for national market peculiarities.

Inspiring conclusion

Examining ESMA data provides a useful lens on where European crowdfunding is headed and how it might evolve as a financial infrastructure. For startups and investors, the key is to observe trends, weigh the pros and cons, and build a fundraising strategy that maximizes transparency, protection and impact on innovation.

Fonte startup-news.it