Crowdfunding KEY INFO IN. points

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Meagan Gallagher
7 years ago
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1 Crowdfunding in France 10 KEY INFO IN points

2 1 FRANCE: SECOND IN EUROPE In 2014, online alternative finance platforms in France cumulatively delivered 154 million worth of funding to individuals and businesses, pushing France into second place in Europe after the United Kingdom ( 2.3 billion), ahead of Germany ( 140 million), Sweden ( 107 million), the Netherlands ( 78 million) and Spain ( 62 million) A BOOMING MARKET In 2015, there were more than 70 crowdfunding platforms operating in France, compared with only two in They raised over 130 million in the first half of 2015, more than twice the amount raised in the first half of OVER 1 MILLION INVESTORS IN FRANCE By the end of the first half of 2015, an estimated 1.75 million people in France had already supported a project on a crowdfunding platform since these were first launched in the country, up 750,000 in 12 months. GREATER CHOICE FOR STARTUPS Equity-based crowdfunding has achieved compound annual growth of 116% in France over the last three years. In the first half of 2015, total equity investments raised via crowdfunding platforms were estimated to be 24 million, in addition to 13 million in corporate loans and 20 million in pledges.

3 5 6 7 FRENCH CROWDFUNDING LEADERS Since it was founded in October 2010, Ulule has already financed 10,300 projects, primarily in the film and video sectors, having raised nearly 40 million. Having raised more than 680,000 via Ulule, Noob le Film, a spin-off from the web series, has become the largest crowdfunded project in Europe. Meanwhile, in the music sector, more than 700,000 Kissbankers in 174 countries have provided more than 38 million in funding for nearly 8,900 projects since March AN EVOLVING ECOSYSTEM The burgeoning crowdfunding sector for SMEs and startups is being underpinned by business angels, venture capital funds and corporate sector players contributing alongside crowdequity platforms, either by supplementing the funds raised, or by acquiring a direct equity stake through crowdfunding operators. BIONIC BIRD: A DRONE DISGUISED AS A BIRD Startup Bionic Bird hoped to raise 25,000 via the crowdfunding site Indiegogo, but ended up coming away with more than 140,000. The small bird-shaped drone, powered by an 0.8-watt electrical engine, is piloted by smartphone and can reach up to 12.5 mph. Bionic Bird recharges on its egg through magnetic contacts in less than 12 minutes.

4 8 9 GOVERNMENT SUPPORT The French government introduced a new regulatory framework from 2014 to underpin booming growth, while also providing safeguards to protect investors. France s public investment bank, Bpifrance, is supporting the growing use of crowdfunding by publishing details of 1,380 projects and 33 donation, loan and investment platforms on its website. A system you can trust Since 2014, French law has allowed project owners to raise up to 1 million in loans via platform-based crowdfunding, up from 300,000 prior to this reform. Two different statuses have been created as part of the new regulatory framework: crowdfunding intermediary (intermédiaire en financement participatif IFP) for lending-based platforms; and crowdfunding investment advisor (conseiller en investissement participatif CIP) for equity-based platforms. Donation platforms are only subject to light-touch payment services regulations and less stringent capital requirements (minimum 40,000) as long as total transactions remain under 3 million a month on average, and may declare their operations under the IFP status. 10 LENDING, ADVISING AND GOOD CONDUCT IFP status entails full compliance from lending platform owners with professional capacity and integrity requirements, as well as rules of good conduct. Similar requirements are made of equity investment platform owners with CIP status.

5 For further information, please visit:

6 Business France 77, boulevard Saint-Jacques Paris Cedex 14 - France Tel.: Designed and produced by: - November 2015

7 attractive ecosystems: 71 innovation clusters, 18 of which are world-class

8 foreign investment decisions per week 19

9 66 Access to a market of million consumers AND GATEWAY TO THE EMEA

10 Nearly 27% OF BUSINESS R&D CONDUCTED BY FOREIGN COMPANIES

Startup funding: a fastgrowing. market. points KEY INFO IN

Startup funding: a fastgrowing market 10 KEY INFO IN points 1 2 FRANCE: A CHAMPION IN ENTERPRISE CREATION Between 2009 and 2012, the net enterprise creation compound annual growth rate was 3.3%. There