Synthesis of the survey

Transcription

1 Synthesis of the survey Participatory finance at the service of the ecoentrepreneurship and social innovation in the Southern Mediterranean

2 SURVEY / AGENDA INTRODUCING THE PERIMETERS OF THE SURVEY 3 WHAT IS CROWDFUNDING? 7 UNDERSTANDING GLOBAL OVERVIEW 11 FOCUSING ON ECO ENTREPRENEURSHIP 14 2

3 INTRODUCING THE PERIMETERS OF THE SURVEY 3

4 PERIMETERS / A DATA BASED ANALYSIS CROWDFUNDING IN MEDITERRANEAN AREA: A COLLATERAL BOOSTER FOR GREEEN ENTREPRENEURSHIP AND SOCIAL I N I T I AT I V E S TO WA R D E CO LO G I CA L INNOVATION This survey aims to bring a global overview of crowdfunding in 9 countries around the Mediterranean area: Algeria, Egypt, Israel, Jordan, Lebanon, Libya, Morocco, Tunisia, Palestine. It will draw the lines of how participative finance, with low impact on financial structure, can boost the development of green entrepreneurship. 4

5 PERIMETERS / PLATFORMS AND COMMUNITIES UK 3 1 FRANCE USA SPAIN TUNISIA 2 2 MOROCCO 1 1 ALGERIA ISRAEL LEBANON PALESTINE LIBYA ÉGYPT 1 1 JORDAN UAE 1 3 LEGEND NUMBER OF PLATFORM USED NUMBER OF BACKERS FOR SELECTED PROJECTS Due to the development of crowdfunding practices in the covered countries, most of the campaigns have been done through foreign platforms. Thus, most of the financial flows come from people living outside of the covered countries. 5

6 PERIMETERS / FIGURES ON CROWDFUNDING CAMPAIGNS PROJECT CATEGORIES ISRAEL 243 PALESTINE JORDAN Sports Arts & Culture Documentary & Journalism Green Education Collaborative Numeric Social Book, Music & Movie Humanitary Commercial PROCESSED CAMPAIGNS NB CAMPAiGNS NB FINANCED PROJECTS LEBANON EGYPT LIBYA ALGERIA TUNISIA MOROCCO INDIVIDUAL ASSOCIATIONS ENTERPRISE Present figures concerned only relevant projects according to the scope of this survey (2 68 projects analysed on a total of 3 426). Projects with no direct link with entrepreneurship in the countries have been excluded, mostly projects linked to car rallies. 6

7 WHAT IS CROWDFUNDING 7

8 CROWDFUNDING / UNDERSTANDING CROWDFUNDING TYPOLOGY DONATION LOAN INVESTMENT NO REWARD WITH REWARD Interest free With Interest Co Production Equity Mainly charity projects or personal projects Mainly creative and popular projects Lending to charity projects Lending to promote greenfield or brownfield projects or supports general business growth Financing creative projects Financing greenfield and brownfield projects or general business growth No gain for the backer Backers are rewarded with goodies linked with the project Payback with no interest Payback with interest Payback on fix or variable parts of the project revenues Capital ownership LEETCHI KICKSTARTER INDIEGOGO KISSKISSBANKBANK KIVA PLANET FINANCE UNILEND LENDOPOLIS SPEAR MY MAJOR COMPANY ANAXAGO WISEED SMART ANGELS 8

9 UNDERSTANDING GLOBAL OVERVIEW 9

10 GLOBAL OVERVIEW / FUNDS RAISED PER TYPOLOGY OF CROWDFUNDING PLATFORMS 11 millions of euros have been collected through 268 successful campaigns. BACKERS (UNITS) AVERAGE AMOUNT RAISED ( / PROJECT) NUMBER OF PROJECTS FUNDED (UNITS) TOTAL RAISED FUNDS 9 Millions ( ) 7 Millions 12 Millions 69 KIA AON LENDING EQUITY Donation-based platforms have two distinctive models: At first the All or Nothing (AoN), where the campaigns must reach theirs objectives for the project owners to be funded; Then the Keep It All (KIA), where the project owners will be funded with all the money they can get through their campaigns, wherever they reach their objectives. 1

11 GLOBAL OVERVIEW / FUNDS RAISED PER COUNTRIES AND SECTORS COUNTRIES Equity Don Israel = 95% of the funds raised during the period (with % through crowd-equity) Palestine = Nearly 2% of the funds raised during the period, mainly on individual and charity projects 45.. Group 1 (Lebanon, Egypt, Jordan) = 2,4 % of the funds raised during the period Group 2 (Libya, Morocco, Algeria, Tunisia) = less than 1% of Libye Algérie Tunisie Morocco Egypt Lebanon Jordan Palestine Israel the funds raised during the period Equity Don SECTORS 5.. Commercial projects = 5 % of the funds raised during the period Digital projects = 3 % of the funds raised during the 25.. period Social projects = 1 % of the funds raised during the period Arts & Culture Books, Music & Movie Collaborative Commercial Documentary / Journalism Education Green Humanitary Numeric Social Sports The others 9 categories represent the last 1 % of the funds raised during the period 11

12 FOCUSING ON ECO ENTREPRENEURSHIP AND SOCIAL INITIATIVES TOWARD ECOLOGIC INNOVATION 12

13 ECOENTREPRENEURSHIP / DEFINITION ECO ENTREPRENEURSHIP AND SOCIAL INITIATIVES TOWARD ECOLOGICAL INNOVATION «Eco entrepreneurs set up projects creating ecological value and promoting sustainable production and consumption through various economic sectors. The green and social entrepreneurship initiatives promoted by civil society bring a great variety of solutions addressing sustainable production and consumption issues.» 13

14 ECO ENTREPRENEURSHIP / CROWDFUNDING CAMPAIGNS ON ECO ENTREPRENEURSHIP AND SOCIAL INITIATIVES TOWARD ECOLOGICAL INNOVATION PROCESSED CAMPAIGNS 1 3 ISRAEL PALESTINE JORDAN INDIVIDUALS ASSOCIATIONS ENTERPRISES NB CAMPAIGNS NB FINANCED PROJECTS LEBANON EGYPT 3 LIBYA M OF FUNDS RAISED INDIVIDUALS ASSOCIATIONS ENTERPRISES ALGERIA TUNISIA MOROCCO 43 K 144 K 4,3 M 14

15 ECO ENTREPRENEURSHIP / FUNDS RAISED PER TYPOLOGY OF CROWDFUNDING BACKERS (UNITS) nc nc AVERAGE RAISED FUNDS ( / PROJECT) NUMBER OF PROJECTS FUNDED (UNITS) TOTAL RAISED FUNDS (K ) KIA AON LENDING EQUITY 15

16 ECO ENTREPRENEURSHIP / FUNDS RAISED PER COUNTRIES AND ACTORS <logarithmic scale> Equity Lending Donation COUNTRIES Israel = 97 % of the funds raised during the period including 87 % raised through crowd-equity 1. Egypt = 1 % of the funds raised during the period 1. exclusively through donation-based crowdfunding All other countries (except Libya and Algeria) have a very emerging use of the crowdfunding to support green entrepreneurship Israel Palestine Lebanon Jordan Egypt Morocco Tunisia Algeria Libya Libya and Algeria haven t use crowdfunding at all to support green entrepreneurship ACTORS 1.. Green entrepreneurs have mainly crowdfunded their 1. projects through crowd-equity (89%). Crowd-lending and 1. donation-based campaigns are very few Association Enterprise Individual Individuals and associations only promote their projects through donation-based campaigns, with individuals representing 9 % and associations 3 % of the total funds raised during the period. 16

17 ECO ENTREPRENEURSHIP / SYNTHESIS 12 % of green entrepreneurship projects financed through crowdfunding campaigns in the Mediterranean area get 99 % of the total crowdfunding revenue for the area, with a support by only 5 % of the backers (e.i. person investing money through crowdfunding platforms). MA,1 % US 6,9 % LEB 1, % FR,6 % Thus, crowdfunding appears to be into a very emerging stage, closer from investment clubs than real crowd-based finance models. Except for Israel, most of the funds are raised through foreign platforms, with a stronger legacy and an adapted legal framework. The challenge for the codevelopment of green entrepreneurship and real crowdfunding practices will necessarily go through a reinforcement of the capacities of local communities to promote and support this kind of initiatives (business design, crowdfunding techniques, and digital practices). Principles behind collaborative finance are directly in line with this virtuous logic of an autonomous development. The main factors that will support this development are: > Change in local legal frameworks to reduce the barrier for both project owners to access collaborative finance and local platforms to collaborate with IL 91,4 % local payment operators. Origins of the funds raised for ECO entrepreneurship > Transformation of solidarity and collaborative practices in this century singular social and cultural context. > Local eco-systems to be consolidated into innovative networks that will support tomorrow s green entrepreneurs. 17

18 SwitchMed is an initiative that supports and connects stakeholders to scale-up social and eco innovations in the Mediterranean. One of the Switchmed programmes is to strengthen green entrepreneurship in 9 countries of the MENA region, by providing trainings to about 27 entrepreneurs. The objective is to convert step by step their Green Business Ideas into a sound, feasible and sustainable Green Business Project. Learn more about SwitchMed: Learn more about the Green Entrepreneurship training programme