Role of alternative finance
An Italian Crowdfunding report indicates the overall volume of the crowdfunding market in Italy to be around EUR 56 million.
Universita' Cattolica del Sacro Cuore; TIM. Il crowdfunding in Italia, Report 2015. http://crowdfundingreport.telecomitalia.com/#12slide
According to the 2nd European Alternative Finance Industry Report, 30 Italian platforms were surveyed and thus Italy ranks seventh in terms of total volume in 2015 (EUR 31.61m).
(Source: Zhang, B. et al (2016): Sustaining Momentum. The 2nd European Alternative Finance Industry Report. Cambridge University. https://www.jbs.cam.ac.uk/fileadmin/user_upload/research/centres/alterna...)
The whole market is growing. From 2014 to 2015, the volume increased sharply by 287%.
A report form the Università Cattolica del Sacro Cuore, Milano, mentions:
Number of platforms: + 68%
Projects received: + 108%
Campaigns: + 67%
Total volume of funding: + 85%
The success rate decreases, from 37% to 30%, but this might be explained by several reasons, including more competition amongst campaigns.
Lending crowdfunding is expected to grow quickly, as two new platforms have just been licensed and more players seem willing to enter in the market.
Equity crowdfunding is expected to take off, as two main bugs have just been fixed by the legislator and the regulator: the kind of companies who can use crowdfunding to raise finance has been enlarged and platforms can directly run the test whether the investment envisaged is appropriate for the client, without bringing the client off-line at a broker dealer.
(Summarized by Alessandro Lerro in http://www.crowdfundinghub.eu/current-state-crowdfunding-italy/)
By the end of 2015, there were 82 platforms in Italy, of which 62 were already active on the market and 13 were about to be launched.
Some local platforms are:
- ProduzionidalBasso.com (donation and rewards) was founded in 2005. It is one of the first platforms founded in Europe.
- DeRev.com (donation and rewards) is the main Italian crowdfunding platform. It was founded in 2013.
- Starteed.com (mixed model) was launched in 2012 as a platform combining donations, rewards and equity.
- Rete del Dono (2011) is a donation-based platform for collecting online donations to non-profit organisation in particular
- Eppela is a donation and rewards-based platform. It was founded in 2011.
(source: Universita' Cattolica del Sacro Cuore; TIM. Il crowdfunding in Italia, Report 2015. http://crowdfundingreport.telecomitalia.com/#12slide)
7 crowdfunding platforms specialising in R&I are currently active.
The Italian Association of Equity Crowdfunding estimates a total of around 5.5 million EUR raised.
|Reward and donation-based crowdfunding||
Rewards-based crowdfunding is around 7 million EUR; donation-based crowdfunding reaches almost 5 million EUR.
Lending crowdfunding is little above 42 million EUR.
Invoice Trading (€ 3,9m in 2015).
Zhang, B. et al (2016): Sustaining Momentum. The 2nd European Alternative Finance Industry Report. Cambridge University. https://www.jbs.cam.ac.uk/fileadmin/user_upload/research/centres/alterna...
|Is there a specific national regulation in place applying to crowdfunding?||
Regulation 18592, June 2013.
- Equity Crowdfunding is limited only to: (a) innovative start/ups; (b) innovative SMEs; (c) collective investment undertakings and investment companies which invest primarily in innovative start/ups and in innovative SMEs (Law 221/2012 and Law 33/2015).
Exception form prospectus requirements for public offers of shares or of stocks of innovative start-ups and innovative SMEs made through an authorised equity Crowdfunding platform which does not exceed the overall amount of EUR 5,000,000.
In Italy, there are currently match fund initiatives and tax benefits in place that aim to boost innivation.
Ministero dello Sviluppo Economico (Ministry for Economic Development); CONSOB (Market Regulator), http://www.sviluppoeconomico.gov.it/index.php/it/; http://www.consob.it
|Matching funds initiatives||
In November 2015, Milan's City Council launched a matching funds initiative in collaboration with the crowdfunding platform Eppela. The project will last for 18 months and, for each project on the platform that reaches 50% of its target, the municipality will privide funds that will cover the other 50% (up to a maximum amount of 50,000 EUR)
Individuals (e.g. business angels) investing in innovative start-ups are awarded a personal income tax reduction (IRPEF) up to 19% of the invested amount, with a maximum investment up to 500 thousand EUR; legal entities (e.g. Venture Capital Funds) are awarded a corporate income tax (IRES) reduction of 20% of the invested amount, with a maximum investment up to 1.8 million EUR.
Ministero dell'Economia e delle Finanze, Art. 4 http://www.agenziaentrate.gov.it/wps/file/Nsilib/Nsi/Documentazione/Star...
|Crowdfunding guidelines for entrepreneurs / investors|
|Guidelines for researchers on crowdfunding for R&I|
Simplification of the equity crowdfunding regulation in place at the moment: verifications about the appropriateness of the investment with regard to the knowledge and the experience of the investor will be performed by the platform's management staff (formerly only performed by banks). Further actions have been taken in order to simplify the procedures for raising capital, to reduce costs and to widen the range of individuals that can contribute to financing innovative projects.
Expert opinion Francesca Passeri, European Crowdfunding Network
NAME: Stars up
DESCRIPTION: Stars up is an Italian equity-based crowdfunding platform. This platform is R&I oriented. As a key factor, it places emphasis on the professionalism of its members.
PROJECT NAME: OLO.
DESCRIPTION: It is the first ever smartphone 3D printer. It allows you to print objects remotely thanks to a special technology. It is a highly innovative and creative product that is affordable and easy to use at the same time. The fund raising concluded on April 2016. The project won the World Maker Faire Editor's Choice Award. An important role in the success of the project is played by the focus on creating a strong business plan to ensure OLO's reliability and fast deployment. It is a rewards-based crowdfunding model.
AMOUNT RAISED: $2,321,811 LINK: https://www.kickstarter.com/projects/olo3d/olo-the-first-ever-smartphone...
NAME: Universitiamo by UNIPV
DESCRIPTION: This is an in-house crowdfunding platform established by the University of Pavia.The platform enables everyone to support the research (medical, technological, social etc.) It allows you to chose the projects with transparency and result tracking. This is outstanding because the University of Pavia is the first university in Italy, and one of the first in the world to open its own crowdfunding platform.