The German Crowdfunding Network has created a nice infographic giving a visual comparison of German and the rest of Europe. Germany has experienced some healthy growth with internet finance and Companisto can claim to have funded one of the largest investment crowdfunding campaigns in Europe to date. But when sizing up Germany with other countries, especially the UK, our Teutonic friends have a ways to go to catch up. There are pending regulations (Kleinanlegerschutzgesetz) in Germany that may devastate the German crowdfunding industry including limitations on how much investors may commit and the need for hard paper documentation (in a country that wants to emphasize digital innovation?). Germany has experienced solid growth but if policy makers want this to continue they need to pave the way – and not obstruct it.
Now if your German is a bit rusty (like mine) here are a few data points to consume:
- The German crowdfunding market has grown 113%
- The number of individuals participating in crowdfunding has doubled from 2013 to 2014
- Individual investments have grown in size and the majority are now over € 1000 and if limitations are imposed this will have a devastating impact on crowdfunding
- The older the investor, the more they are willing to invest