Crowdfunding: Opportunity or Risk for Small Enterprises? (Kwartalnik Nauk o Przedsiębiorstwie)

Summary

• Since the first issue in 2012, Poland's equity crowdfunding market carried out 286 issues worth almost PLN 316 million by 2023.p.11
• Issue success rates hovered around 60% in earlier years, fell to 37% in 2022 and reached only 32% in 2023, when 23 campaigns were completed.p.11
• Emiteo raised PLN 15 million in 2021-2023: PLN 8.5 million in 2021, PLN 3.3 million in 2022 and PLN 3.2 million in 2023.p.13
• Emiteo's share of equity crowdfunding capital raised grew from 7% in 2021 to 16% in 2023.p.13
• KTS Weszlo's 2021 offer covered 20% of share capital at PLN 180 per share with a pre-money valuation of PLN 18.5 million and a PLN 4.5 million target.p.14
• In 2022 the company 100% S. A. raised PLN 4.5 million, 40% of its PLN 10.5 million target, from 759 investors.p.15

Key insights

1. The Polish equity crowdfunding market grew from a niche segment into a significant part of the capital market, but has slowed markedly in recent years, mainly due to regulatory changes.p.11
2. The 2012 market closed with one issue that raised PLN 50 thousand, while by 2023 there had been 286 issues of almost PLN 316 million in total.p.11
3. The success rate of issues dropped from around 60% to 37% in 2022 and 32% in 2023.p.11
4. Capital raised in 2023 (PLN 19.7 million) was about 15% of the amount recorded two years earlier.p.12
5. Stricter licensing rules adapting national law to the new EU framework raised barriers and reduced investor interest in crowdfunding offers.p.12
6. Emiteo is one of few Polish platforms holding a licence from the financial supervisor KNF.p.13
7. KTS Weszlo's Series B offer, backed by a strong brand and an active fan community, filled in about an hour and a half.p.14
8. The 100% S. A. campaign failed because its PLN 10.5 million target was far above its PLN 4.5 million valuation.p.15
9. The study focuses on equity crowdfunding because of its dominant share in financing the SME sector.p.10