Crowdfunding market grows as retail investor demand outpaces project supply

The crowdfunding market has transitioned from an alternative financing method into a regulated segment of the financial market. According to the European Securities and Markets Authority (ESMA), 181 licensed crowdfunding platforms facilitated 4.25 billion euros in financing in 2024. Debt crowdfunding accounts for nearly 60% of this market, with retail investors making up almost 90% of the participant base.

In the Czech Republic, the market is also expanding, with project financing estimated to potentially reach 6 billion CZK by 2026, primarily driven by real estate. However, the rapid growth in investor interest has created a supply-demand imbalance in certain sectors. For instance, the investment platform Investown reported that while approximately 450 to 460 million CZK flowed into client digital wallets in September, the platform only published new projects totaling about 230 million CZK. This has resulted in over 200 million CZK sitting in digital wallets awaiting investment opportunities.