French peer-to-peer lending hits €2.1bn in 2022
Loan-based crowdfunding in France reached almost €2.1bn (£1.85bn) in 2022, compared to €1.580bn in 2021.
According to the latest barometer of crowdfunding in France from Mazars and the Financement Participatif France (FPF), the bulk of the loans are going to small- and medium-sized enterprises.
Meanwhile, the overall crowdfunding market in the country – including equity – hit a record €2.355bn. This was an increase of more than 25 per cent on 2021’s figure. Since 2015, the cumulative total is more than €7bn.
The barometer also found that the interest-bearing loan market continues to grow, going from €260m in 2021 to €302.5m in 2022. Crowd bonds are also up sharply, hitting €1.788bn in 2022 compared with €1.293bn in 2021.
The report said the growth of the overall crowdfunding market is due mainly to a big increase in real estate crowdfunding, which accounts for 40.2 per cent of the total. This segment hit a new record of €1.607bn in 2022 against €1.146bn in 2021. The number of projects financed increased from 1,346 in 2021 to 1,628 in 2022.
“The market remains overwhelmingly oriented towards residential, which represents 71 per cent of projects,” the barometer said. “Property dealer operations remain dominant (56 per cent) while pure real estate development is down (35 per cent).”
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The report also noted the increasing popularity of social and environmental benefits when it comes to crowdfunding. €552m was lent out for social or environmental projects last year across 61,891 projects.
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“The interest of crowdfunding for the financing of the economy no longer needs to be proven,” said FPF president Damien Guermonprez. “This collection tool meets the needs of all types of sectors, as evidenced by the growth – again this year – in the volumes collected, and the number of existing platforms in France.
“With the entry into force of the European Regulation, 2023 is a pivotal year for lending and investment platforms in financial securities, which must obtain the new authorization as a Crowdfunding Service Provider.”
“This year again, crowdfunding recorded significant growth reaching just over €2.3bn euros collected, despite an uncertain economic context,” said Bertrand Desportes, a partner at Mazars.
“There is a real enthusiasm around crowdfunding, facilitated by an increased diversification of collection channels. Crowdfunding is establishing itself as an anchored savings solution for many French people, serving projects that make sense.”
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