Real Estate Crowdfunding
Equity-based Crowdfunding
Reward-based Crowdfunding
Balance Sheet Property Lending
Revenue Sharing
$6.34m 1%
$6.43m 1%
$12.09m 2%
$9.09m 1%
$9.65m 1%
$0.07m 0%
$0.17m 0.1%
$2.63m 0.9%
$0.20m 0.1%
$14.36m 6.2%
$3.66m 1.6%
$1.93m 1%
$0.05m 0%
$0.24m 0%
$0.35m 0%
$1.56m 0.7%
$0.02m 0.0%
$26.30m
$0.21m 0.2%
$0.48m 0.4%
$25.35m
$19.16m
$12.42m
$673.19m $289.26m
$0.78m 0.3%
$233.39m $192.47m
$0.05m 0.0%
$4.24m 3.3%
TOTAL
Other23
The Global Alternative Finance Market Benchmarking Report
$0.15m 0.1%
$158.46m $129.20m
$11.37m
$1.00m
$1806.94m
Business Finance in Latin America & the Caribbean: Figure 5.9: Total Alternative Business Funding Volume in LAC (2016-2018), USD
Figure 5.10: Composition of Business Finance - Proportion of Category, LAC 2018 3.5% 0.5%
1200
1080.8
1000
Millions
800
565.7
600 400 200
233.8
0 2016
2017
2018
96%
In 2018, 60% of alternative finance market activity in LAC went to fund a business. This region has some of the highest proportions of business focused activity, marking the emphasis placed on the small business sector across the region. Amounting to $1.08 billion, this is the first time that business-specific alternative finance volumes in the region surpassed the billion-dollar threshold. Having grown exponentially from a relatively low base in previous years, this region has exhibited fast year-on-year growth. Against 2017’s volume, the region’s alternative finance business volumes have grown by 142%. In comparison to last year, where approximately 26,000 businesses were served by alternative finance firms, this year 217,000 business successfully received capital to fund their business activity.
Debt-Based Volumes Equity-based Volumes Non-Investment Volumes
Not surprisingly, debt-based models account for 96% of all business activity, amounting to $1.04billion to just over 213,000 business fundraisers, with Invoice Trading and P2P/ Marketplace Business Lending as the two largest models contributing to debt activities. For a third consecutive year, Chile ($286.18m) is the leader in SME-focused alternative finance. Peru ($154.47m) and Colombia ($149.27m), however, have leap frogged both Brazil and Mexico to take second and third spots for debt-based business finance. Approximately 20% of all debt activity went to businesses in the Retail & Wholesale sector, with 11% towards Construction (a nod to
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