Why Does Equity Crowdfunding Keep On Failing in France?

Markets

A recent report by the French Crowdfunding Association (FPF) in partnership with the consulting giant KPMG confirms that equity crowdfunding has been declining by 20% for three years, Crowdfundinsider.com reports.

One of the possible rationales behind this is related to the structure of the French alternative finance market dominated by the debt-based crowdfunding segment.

In fact, as pointed out by Crowdfundinsider.com, “the growth for debt based platforms has been pronounced jumping from a total of €195.4 million in 2017 to €273 million in 2018.”


Stéphanie Savel is the President of the French Crowdfunding Association (FPF) and of the leading equity crowdfunding platform in France, Wiseed. (Source: Twitter).

Stéphanie Savel, President of FPF and of the leading equity crowdfunding platform in France, Wiseed, commented:

“The decline in equity crowdfunding is a sign of wise behavior from individuals.”

Find out more here.

The Author

Doctoral researcher in Entrepreneurship with a research focus on venture financing and a passion for all things sustainability, I have developed my career in the marketing realm by helping Fortune500 companies maximise their strategic efforts. Holding a Full-Time MBA from Durham University, I blogged for the Financial Times. Find out more about me here: https://www.linkedin.com/in/lucasabia/