The Lucerne University of Applied Sciences and Arts (HSLU) has published the Crowdfunding Monitor 2021. In total, Swiss crowdfunding platforms financed projects totaling 606.6 million francs. The volume was thus stable compared to the previous year. The increase across all crowdfunding categories was 1.6 percent. the challenging environment was also reflected in the providers. While new platforms have been added continuously in recent years, not a single new player ventured into the market in 2020. For the year 2021, the study authors again anticipate higher growth in the Swiss crowdfunding market and a volume of between 650 and 850 million francs.
The volume growth within the crowdfunding categories was different in 2020, mainly due to Covid-19. Overall, the effects of the Covid 19 pandemic were very positive for the crowd support / crowddonating area, where the volume rose from CHF 24.6 million in 2019 to CHF 44.6 million (plus 82 percent). The previously high growth dynamic in crowdlending, on the other hand, was stopped by Covid-19. The market volume only increased by seven percent to 448 million compared to the previous year. In the crowdinvesting area, the volume declined and in 2020 was still 114 million francs (-26 percent).
development successful financed Campaigns to Volume of 2008 to 2020. (Source: Crowdfunding Monitor Switzerland 2021 / HSLU)
Crowdlending growth slowed
The negative effects of the Covid 19 crisis were particularly evident in the crowdlending area. The crowdlending volume has grown by 7.1 percent and the crowdlending market is still the most important crowdfunding category in Switzerland in terms of volume. In the SME loan segment, however, the volume fell from 60.1 percent to CHF 95.9 million.
The reason for this decline in volume was primarily the federal Covid-19 credit program, through which SMEs received loans from banks of up to CHF 500,000 interest-free and without a credit check. “The crowdlending platforms were not included in this loan program,” says study author Andreas Dietrich.
The volume of consumer loans via crowdlending platforms also fell in 2020, from CHF 67.7 to 55.4 million. Real estate loans, on the other hand, saw strong growth, their volume rising to CHF 296.7 million.
Crowdlending-Volume Switzerland of 2012 to 2020. (Source: Crowdfunding Monitor Switzerland 2021 / HSLU)
Boom thanks to Corona projects
In the area of crowd support / crowddonating in particular, many new campaigns were carried out due to the corona crisis. With this form of crowdfunding, money is collected for social, charitable, cultural or entrepreneurial projects. Sometimes the donation is not linked to any consideration, sometimes the investor receives, for example, a product or a voucher for the project that he or she supported for his or her contribution.
In the past year, the funds financed have often benefited local businesses or freelancers. On the one hand, these campaigns were financed through existing Swiss crowdfunding platforms. These mostly carried out targeted initiatives to enable such campaigns quickly and easily. On the other hand, around 40 temporary platforms were created that were only online for a few months. Vouchers were often sold on these temporary platforms during the lockdown, which can then be redeemed at a later point in time.
The study authors Andreas Dietrich and Simon Amrein from HSLU estimate that around 270,000 Swiss people gave money for crowdfunding campaigns in 2020. “I assume that many people will have financed a project online for the first time in 2020. Financing via the Internet has therefore become more widespread,” says Dietrich.
The study can be done on the HSLU website can be downloaded for free.
This article first appeared on startupticker.ch.
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