Role of alternative finance
There is limited data available on the crowdfunding volumes. Comparing the alternative finance volume per capita with the the GDP per capita, Portugal is below the best-fit line. This indicates the underdeveloped status of crowdfunding compared to many other European countries.
Currently, there are 3 operating platforms:
- Ppl.com (reward) is the only platform providing reward crowdfunding since 2011.
- Raize.pt started its activities as a P2P business lending platform in 2014.
- NovoBancoCrowdfunding.pt (donation) was launched in 2012 by Novo Banco Bank.
There are currently no crowdfunding platforms dedicated to R&I.
|Reward and donation-based crowdfunding||
Donation-based crowdfunding: EUR 240,000.
Rewards-based crowdfunding was introduced in Portugal in 2011 by two platforms: Massivemov and PPL. Massivemov has stopped its operations, as have other platforms that also tried rewards-based crowdfunding since then, thus showing the difficulty of having a profitable operation. PPL is the only rewards-based crowdfunding that is still active in Portugal, having raised around EUR 1,5 million for almost 500 successful projects. There is room for further growth, once the general public is comfortable with the concept of crowdfunding and online payments.
(Expert opinion Yoann Nesme in http://www.crowdfundinghub.eu/current-state-of-crowdfunding-in-portugal/)
P2P business lending: EUR 1 million.
|Is there a specific national regulation in place applying to crowdfunding?||
Since August 2015, the Portuguese government has put into place a law that regulates crowdfunding activity, supervision, platforms, beneficiaries, investors, as well as the cooperation between the relevant parties.
Portugal has published proposed investment crowdfunding regulation, for both debt and equity, in a consultation paper. The consultation has recently closed. The proposed rules are as follows:
- Description of the activity or product to be funded and the purpose of the funds to be raised;
The Portuguese government classifies crowdfunding as collaborative funding. Collaborative funding is the type of financing for entities, or their activities and
projects, through an online platform where they carry out a fundraising campaign directed to individual investors.
The Portuguese government distinguishes the following forms of collaborative funding: collaborative financing through a donation, collaborative financing with an associated reward, collaborative equity financing and collaborative loan financing.
CASI policy brief for Portugal
Crowdfunding in Portugal is monitored by CMVM (Securities Market Commission) and every platform needs to be registered at DGC (General Consumer Office).
|Matching funds initiatives|
|Crowdfunding guidelines for entrepreneurs / investors|
|Guidelines for researchers on crowdfunding for R&I|
DESCRIPTION: The platforms hosts different types of projects and inovative projects. Even if the Portuguese crowdfunding market is very young, PPL gathered some success stories. These achievements are the result of appealing and positive videos, effective promotion within several social circles, simple and attractive rewards and, above all, a strong dedication and passion about the idea.
LINK: http://ppl.com.pt/en source:http://ppl.com.pt/en/success
PROJECT NAME: SunTaste
DESCRIPTION: SunTaste is a solar oven, developed to take advantage of clear skies in order to use solar energy instead of electricity. The SunTaste oven possesses a good and detailed presentation of its functions. Moreover, the design of SunTaste seems to be catchy enough. The project has been successfully funded.
AMOUNT RAISED: € 3,499 out of € 10,000.
Cooperation with Banks:
NOVO BANCO launched a donation-based crowdfunding platform in late 2012, which is still active today. Banks have demonstrated a modest interest in the alternative finance industry and have done little so far to either fight it or collaborate with it.
Expert opinion Yoann Nesme in http://www.crowdfundinghub.eu/current-state-of-crowdfunding-in-portugal/