The loans you need, when you need them.

Apply for the loan that best fits your needs

Top Money Loans is committed to working with the best
lenders to provide you the best possible service.

Apply for a Cash Loan

Your application is easy, safe and only takes minutes.

Fast Approval

Approvals as soon as the next business day.

Check Your Account

Funds are deposited directly to your bank account as soon as the next business day.

The evolution of the crowdfunding French

Crowdfunding offers individuals and businesses an alternative to financing by banks and other traditional players. How is the crowdfunding in france? What are the results of the crowdfunding by donation, loan or bonds and stocks? What are the risks for investors? This is the topic of this post.

This article looks at crowdfunding, or crowdfunding, which involves the crowd (crowd) investors as contributors, lenders, or investors :

 Crowdfunding by gift exchange or "gift against gift" allows individuals to fund a project of an individual, an association or a small or medium-sized enterprise (SME) in exchange for a consideration, material or symbolic.
The crowdfunding loan or bond (crowdlending, marketplace lending in English) allows individuals to lend money to SMES against the repayment with interest.
 The crowdfunding for capital investment or investment participatory allows individuals to buy online shares of start-ups or SME growth.

A sector which is still nascent

Crowdfunding has less than 10 years. Forms of paid (by loan, bonds or shares), the crowdfunding has taken off in France, only very recently, after its regulation in October 2014.

In the Uk, alternative finance, including crowdfunding is a part, already weighs several billion pounds ; in the United States, several tens of billions of dollars. France has about four years of delay on these markets. On the positive side, we can say that she took advantage of their experience.

The Barometer of crowdfunding published by the association Funding Participatory France (FPF) shows that in 2016 the alternative finance French funded 629 million euros of projects. Alone, crowdfunding has financed more than 21.375 projects for a total amount of 234 million euros, an increase of 40% compared to 2015.

In an economy that is sluggish, tens of thousands of dreams realized, new launched products, companies and jobs created, it's important ! Even if the crowdfunding is still very marginal compared to the hundreds of billions of euros of funding granted by banks, it evolves and matures quickly.

Crowdfunding is a young industry, but his offer is evolving very rapidly. She adapts to experience, to regulation, to changes in the market. The tempo is closer to that of the e-commerce as finance in the traditional way. Some changes in 2016 :

 Enlargement of the regulation. The ceiling of fundraising in crowdfunding has increased from 1 million to € 2.5 million per year per SME. Platforms authorised Investment Advice, Participative (CIP) were awarded the right to negotiate the convertible notes and the receivables referred to as mini-bonds. The platforms of donation consideration must now be licensed by the Intermediary in crowdfunding (IFP).

 Selection more rigorous projects. Platforms French crowdfunding by donation with a matching frame the projects much more closely than their american counterparts – where a much better rate of success. Some of the youthful mistakes of crowdfunding paid such that the too fast growth of FinSquare (acquired then by Lendix) have led to approaches that are more conservative.

 Structuring of the market. An "ecosystem" is. The experts of the valuation of firms, wealth managers, accountants and other financial advisors to incorporate crowdfunding into their council in the financing of SMES. Comparison websites and other aggregators, offers of crowdfunding, such as the Be Crowd and bring to the market a greater transparency.

 The Emergence of leaders. As a " market place ", the more time a crowdfunding platform has users, the more it is attractive. Users therefore tend to concentrate on a dozen of platforms in each category : gift, loan/debt, and investment. 144 platforms for lending and investment licensed since 2014, thirty have been removed before you even begin.

 Diversification of the offer. The financing offer is differentiated to accommodate the peculiarities of economic sectors such as the energy transition, franchises, trade, the cooperatives, the pharmaceutical industry, the wine, the social and solidarity economy or the real estate. Crowdfunding of real estate development, for example, allows platforms lending and investment to offer a diversification in bonds to shorter-term investors who invest in them long-term.

Collaboration with the finance classic

A background trend of crowdfunding is the collaboration with mainstream financial institutions. To support their development until it can be profitable, most of the platforms have entered into partnerships with management companies, banks, or insurers, which, according to the case, become their shareholder, investor, technology partner or provider of funds for the projects.

In the United States, investors said the institutional offer the three-quarters of the funds loaned on the largest platforms, lending or crowdlending. This trend is gaining France – with more moderation. On platforms such as Unilend or Anaxago, the institutional investors invest according to the same rules as the investors, directly on the platform. Elsewhere, as with Lendix and SoWeFund, institutional and pros to co-finance projects with the platform, for example through investment funds. Some platforms, such as Lendix and WeShareBonds invest themselves in projects to link their interests with those of investors ; still others, such as Prexem, constitute a protection fund.

Can we still speak of "funding by the crowd" (translation of " crowdfunding ") ? It is not clear that the distinction between the alternative finance "by the crowd" and "the crowd" to be sustainable in term of both the collaborations are widespread and are evolving rapidly. Currently the investors and the holders of the project appear to be rather reassured that worried about the presence of financial institutions classic to their side in the crowdfunding.