Equity crowdfunding soars 115% as EU stamps its approval

Since November 2021, the crowdfunding services market has been a fully-fledged part of the financial market in the European Union in regulatory terms. The EU regulation aims to professionalize this segment and increase certainty for market participants. Polish entities are waiting for the adoption of a national law that will implement EU law. One of the most important changes is the increase in the limits of acquired financing – ultimately up to EUR 5 million. Crowdfunding platforms are waiting for a number of changes.

Crowdfunding is one of the fastest growing alternative methods of financing new economic initiatives on the private market. The report “Equity Crowdfunding 3.0” prepared by the Union of Financial Companies and the University of Economics in Wrocław shows that for almost 10 years of the crowdfunding market in Poland, i.e. until the end of October 2021, start-ups obtained almost PLN 292 million from the issue of shares and shares under equity crowdfunding. During the 10 months of last year, 82 companies decided to raise capital in this form, and its value amounted to 115% volume from 2020, with 12 issues not yet completed, and more than 40 new ones waiting to be launched.

“Crowdfunding is a financing acquisition tool that is growing quite dynamically on the Polish market. In 2021, around 100 enterprises will reach for financing in the form of equity crowdfunding. This is an increase of several dozen percent compared to the previous year” – says Tomasz Kowcun, the director of business development at Crowdway.

Crowdway is a crowd-type platform operating on the Polish market since 2015, which supports the development of innovative projects and enterprises at the stage of rapid growth.

“For our platform, the growth is also close to 100%, because last year we completed 12 projects, i.e. we supported 12 companies in obtaining financing. This year there will be 21 companies”, says Tomasz Kowcun.

After 11 months of 2021, the sum of funds collected in equity crowdfunding by companies cooperating with Crowdway exceeded PLN 35 million. Last year was marked by online businesses, hemp and craft companies. Among the large issues carried out were, among others CanPoland, which at the beginning of 2021 collected PLN 4.4 million in 11 minutes. At the end of the year, Kombinat Konopny SA – a company specializing in the cultivation and processing of fiber hemp – collected PLN 4.5 million in seven minutes.

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