OVERVIEW OF THE PERFORMANCE OF CROWDFUNDING PLATFORM OPERATORS

As of 31 December 2022, 23 SFOs were listed as SFOs, of which 11 were active and 12 had not yet started operations SFPOs have helped to finance projects related to the financing of real estate businesses and have financed other smaller business projects, refinanced business loans and raised working capital It should be noted that the crowdfunding market was dominated by loan financing.

Figure 1 shows how the amounts financed and the number of transactions have evolved since the entry into force of the SFI at the end of 2016. In 2022, €161 07 million worth of projects have been funded, with as many as 618,000 transactions having been made to achieve this funding (one person can make multiple transactions on different platforms, so the number of transactions does not equal the number of unique investors). Compared to 2021, the amount financed has increased by 40.3% or €46.28 million and the number of deals has increased by 51.38% or 207.2 thousand units.

Figure 2 shows that the number of projects published by the SFP has increased throughout the period. Over the whole period (2017 to 2022), 5,332 projects have been published (2,718 in 2022, 1,516 in 2021, 650 in 2020, 352 in 2019, 74 in 2018 and 22 in 2017). The number of SFP projects announced during this period has increased more than 120 times. In 2022, 2,718 projects will be funded through the SFPO (79.29% more than in 2021). The majority of projects were financed for business loans and working capital needs (71 9% or 1 955 units), while a smaller share (28.1% or 763 units) were projects related to the financing of real estate businesses (see Figure 3).

Real estate business financing Business development

Source

A different picture emerges when comparing the types of funding by the amount financed A comparison of the amounts financed by type of financing (see Figure 4) shows that the amount of business financing for real estate (EUR 88 47 million or 54.93%) is higher than that for business financing (EUR 72.59 million or 45.07%). This can be explained by the fact that real estate business financing projects are generally larger and require more funding Although real estate business financing projects are potentially a safer alternative for the investor (using primary mortgages as collateral), these projects pay lower average interest rates

Investments in business finance projects are riskier but potentially more profitable investments for small investors

Real estate business financing Business development

The value of the projects funded in 2022 was €161 07 million UAB "Finansų bitė verslui", UAB Nordstreet, UAB "Bendras finansavimas", UAB "Trečia diena", UAB "Profitus", UAB "EstateGuru Lietuva", UAB, UAB "Inrento", UAB "HEAVY FINANCE", UAB, UAB "8 Stars", UAB

"FinoMark and Iban online UAB (see Table 1) The largest amount of funds (EUR 41 18 million) was lent through the platform managed by UAB Profitus, which helps to raise finance for real estate business projects

The smallest amount was lent through UAB

"According to the data as of 31 December 2022, the largest number of financing transactions (237 2 thousand) will be concluded through EstateGuru Lietuva, UAB, the second place will be taken by UAB Finansų bitė verslui (228.5 thousand), and the third place will be taken by UAB Profitus (58.1 thousand).

The following review assesses only active SFPOs

As of 31 December 2022, the average value per transaction increased by around 32.87% to EUR 3 364 (see Table 2) This can be explained by the fact that UAB Iban online became operational in 2022, through which larger projects were financed. Compared to 2021, the average value of transactions concluded by UAB Finansų bitė verslo (Finbee verslo) increased the most, by 14 5% to EUR 66, while the average value of transactions concluded by UAB Inrento decreased the most, by 65.83%.

Analysing the average transaction values, it can be said that investors tend to lend money in larger amounts for projects related to real estate development, while they tend to lend smaller amounts for investments in business loans, working capital, business development, and loan refinancing.

It took on average 10 days to raise funds through the SFP for real estate business finance projects in 2022 (the same as in 2021) and 8.5 days to raise business finance (0.5 days longer than in 2021).

An analysis of the SFPO's performance in 2022 shows that the highest average annual interest rates are paid for projects related to business financing (11% on average), while projects related to real estate business financing generated an average interest rate of 5.49% for investors.