Austria | Current State of Alternative Finance 2020
Working for 1000×1000 Crowdbusiness GmbH, Karoline is one of the most influencing experts of crowdfunding in Austria. As a co-partner and managing director of the ISN Group, a longstanding member of the board of M&A PrivatBank AG and a crowdbusiness expert, she has almost 30 years of experience in the financial industry, business model development, community development, installation and use of digital marketplaces.
An estimation on market volume in Austria?
The Austrian alternative finance / crowdfunding market volume has reached €68 million in 2019.
Which online AltFin models are frequently used?
In Austria, the following online alternative finance models are the most frequently used:
- Equity-based Crowdfunding
- Reward-based Crowdfunding
- Real Estate Crowdfunding
- Donation-based Crowdfunding
To be noted, Equity-based Crowdfunding has a special form in Austria. We use subordinated loans, which is considered nearly as equity.
What are the leading platforms?
There are 5 platforms which are outstanding in terms of financing volume, market influence and popularity:
Can you list some successfully financed projects?
Here are three project examples:
- Hektar Nektar Campaign: Financed on Conda, the project has collected €257,100 by 311 investors, reaching 514% of the initial funding target.
Read more about Hektar Nektar
- Hochoben Campaign: Financed on 1000×1000, the project has collected €398,700 by 140 investors, reaching 798% of the initial funding target.
Read more about Hochoben
- Biogena Campaign: Held on Finnest, the on-going project is initiated by Biogena Naturprodukte GmbH & Co KG. Biogena promises the investors a fixed annual interest rate of 4%, with half-yearly returns from 2022 till the maturity date on Sep. 30, 2024.
Read more about Biogena
What are the leading Crowdfunding / FinTech associations?
There are three leading associations, regarding their influence and reputation:
- Austrian Chamber of Commerce, Financial Services, Department Crowd Investing
- Austrian Venture Capital and Private Equity Organisation
- Financial Market Authority
Are there any governmental programs / projects promoting Alternative Finance and Crowdfunding?
Alternative Finance Law 2015/2018 in Austria is the main governmental regulation and legislation of alternative finance. It is as well considered as a governmental method of promoting and regulating the AltFin industry.
Are there any research centres and/or projects collecting data on AltFin?
Crowdcircus is one research project collecting information about alternative finance and crowdfunding industry in Austria.
Are there any tax incentives for AltFin investors?
Unfortunately, there is still no tax incentive for investors.
How is the AltFin industry regulated? Are there any regulations & legislations?
As mentioned before, Alternative Finance Law 2015/2018 is the main governmental regulation and legislation of alternative finance.
Please give some forecasts of Alternative Finance in the next 5 years
Personally, I estimate 20-30 % of increase p.a. in volume (2019: 67 million EUR), 20-30% of increase in number of financed cases, and 10-15 % of increase in default rates (2019: 4.33% in numbers).
Within the next 5 years EU Regulation for cross-border crowdfunding will increase the number of foreign platforms in Austria.