“Mixed” P2P platforms lead in funding rounds
Over the past 17 years, European P2P platforms have attracted more than $11 billion through funding rounds. Most of the money raised comes towards the mixed sector of business and consumer lending.
Since 2005, European P2P platforms* have attracted $11.7 billion through 387 funding rounds. About 1,580 private and institutional investors took part in the transactions. However, the total investment in the European market is still lower than in Asia ($12 billion) or North America ($19.6 billion) over the same period.
In 2022, the growth in total fundraising was mainly due to the so-called Conventional Debt, whose volume grew by 45.4%. At the same time, financing through rounds itself reduced by 29.2%, which, together with the previous indicator, led to an overall increase of 14.8%.
“One of the factors behind the fall is the global geopolitical situation, which forced investors to change their strategies. Despite this, the overall amount of funds raised still increased. This tells us that the P2P lending market in Europe is trying to adapt to economic and political turbulence and has the potential for further development and growth in peacetime.” - analysts of the Robocash platform comment.
The greatest interest among investors is shown to the platforms of Great Britain, Germany and France. These countries together attracted 89% of all investments in the European P2P industry.
50% of all-time investments are in the mixed business and consumer P2P lending sector ($5.9 billion). “There is a clear trend towards increasing diversification. Platforms tend to pay attention to specific clients in order to build long-term relationships with them.”- specialists add.
* 507 platforms were taken for analysis