4 factors behind the rise of equity crowdfunding in Spain

According to the latest market data by Crowdcube, equity crowdfunding is booming due to four factors which are driving the growth of the sector in Spain.

They include the enactment of the Spanish Crowdfunding Law (Law 5/2015); the support from public institutions; the collaboration between platforms and traditional investors, which has helped facilitate larger funding rounds by enabling different types of investors, such as institutions, business angels, to invest alongside the crowd; and finally an increase in follow-on rounds from companies that have used equity crowdfunding and returned for further funding.

As a consequence, equity crowdfunding in Spain is growing rapidly as the platform raised by the end of Q1 more than 60 percent of the total funds raised in 2016. In particular, according to statistics, €5.6 million has been invested in 19 companies, with an average raise to date in the sector of € 300,000.

However, Expert Eva Mª Gómez, who took part into CrowdfundingHub’s Current State of Crowdfunding in Europe 2016, claimed that

the challenge is about education (…) and diffusion about the way of accessing to the alternative finance industry for the entire society.

Find out more here.