In 2017, crowdfunding managed to raise more than 100 million euros in Spain. A considerably high figure for this country. In which hundreds of crowdfunding platforms are estimated to exist. Given these facts, we have that Spain is a very advanced country in terms of crowdfunding. Almost as much as the United States is. But why? Today we’ll analyze the question.

Spain and its relationship with crowdfunding

The success of crowdfunding in this European country is nothing new. That’s one of the main reasons why it’s so widespread in Spain. For starters, according to an InfoCrowdsourcing report crowdfunding had raised 9.7 million euros in 2012. This happened during one of the most prosperous times for crowdfunding worldwide. However, that figure would pale in the future.

According to the aforementioned report, an increase of 19 million euros was observed in 2013. And not only that, the number of crowdfunding platforms was also increasing. And for that year there were an estimated 53 platforms dedicated to this financing method. This makes us understand that Spain, being a developed country with a thriving economy, was the right place for crowdfunding.

number of crowdfunding campaigns in spain 2014
A map showing the number of crowdfunding platforms in Latin America and Spain, the latter being the place with the largest number of these in 2014. Screenshot: Scribd

Between 2013 and 2015 there were several impressive records of fundraising with crowdfunding in Spain. One of them was the film campaign The Cosmonaut, which raised €400,000 through 5000 contributions. Another was Heroquest, a board game of the Spanish company Gamezone Miniatures. Which raised €680,000. But a particular campaign would beat an even bigger record.

The newspaper El Español had an equity crowdfunding campaign that also became popular. Since it managed to raise a total of €3,606,600 through 5593 small investors. Positioning this campaign as one of the most successful crowdfunding campaigns in Spain. However, as expected, crowdfunding would be regulated by the Spanish authorities. Enabling the creation of laws in this area.

Consolidation, regulation and current situation

As happened in the United States and other countries, crowdfunding ended up being regulated in Spain. The first case occurred in 2015 with Law 5/2015 on the Promotion of Business Financing (LFFE in Spanish). But this law mainly affected equity crowdfunding and was created based on the demands of investors nationwide. Currently, the National Securities Market Commission (CNMV in Spanish) supervises this financial branch in Spain.

Rewards-based and donations-based crowdfunding remain intact. But crowdlending is controlled and regulated by the Bank of Spain. Either way, this method of financing would continue to grow in this country. An article by Hiberus Tecnología explains that crowdfunding has been consolidated within the Spanish market. Mentioning that there are hundreds of companies that work in this business.

crowdfunding companies platforms spains
According to the newspaper Crowdemprende, the number of crowdfunding platforms in Spain never stops growing. Mentioning that activities aimed at crowdfunding increased by 92% in 2017.

As we said at the beginning, 2017 was a decisive year for crowdfunding. Where there was an exact increase of 101 million euros collected by this financing method. Which according to an article by ComputerWorld, is equivalent to an increase of 38.92% compared to the previous year. This business, technology and innovation website expects this figure to increase in the future.

All this information comes from a report prepared by Universo Crowdfunding. In collaboration with the Complutense University of Madrid. Here it’s revealed that crowdlending has the highest volume of stock of the total amount raised with crowdfunding (35.33%). Then there’s crowdinvesting (22.82%), real estate crowdfunding (22.77%), reward-based crowdfunding (11.39%) and donations-based crowdfunding (7.68%).

fundraising spain crowdfunding universo crowdfunding
A graph with the total of euros raised by crowdfunding in Spain according to its typology. Between 2015 and 2017. From left to right: crowdinvesting, real estate crowdfunding, crowdlending, rewards-based crowdfunding and donations-based crowdfunding. Source: Crowdfunding Universe

Based on this report’s data, it’s possible to reach a conclusion. Crowdfunding is considerably advanced in Spain with a great chance of continuing to grow. This only keeps highlighting the economic development of this country, which without a doubt promotes financing through crowdfunding

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Crowdfunding and Spain get along very well!