Crowdfunding / crowdinvesting / crowdlending
FinTechs belonging to this category operate crowdfunding, crowdinvesting and crowdlending platforms on which money is raised to invest in various projects, mainly start-up companies and real estate projects.
Crowdfunding is not a defined financial service, but generally used to describe donation-based crowdfunding (the investor donates the money to the project), reward-based crowdfunding (the investor receives an often symbolic consideration for his investment), equity-based crowdfunding (crowdinvesting: the investor participates in the profits of the financed project or acquires shares or debt instruments) or lending-based crowdfunding (crowdlending: the investor is reimbursed at the end of the project with or without interest).
Attitude of the country towards crowdfunding, crowdinvesting and crowdlending platforms
Even though the new EU-legislation regarding crowdfunding and the subsequent harmonisation in Hungary has been in effect for months, crowdfunding is still relatively unknown to the public. Thus, the social and political climate is neutral.
Obligations and requirements to provide crowdfunding, crowdinvesting and crowdlending platforms described above
Crowdfunding is a sui generis licensable service based on Regulation (EU) 2020/1503, which is directly applicable in Hungary. The Hungarian National Bank may be requested to issue the relevant licence for this activity.
Additional comments regarding the legal situation for crowdfunding, crowdinvesting and crowdlending platforms or what FinTech’s must be aware of in this business area
Market size for crowdfunding, crowdinvesting and crowdlending platforms and biggest companies in this business area
This is unknown, because the market is very small, with only a limited number of players active (e.g. Creative Selector, Goood).
Additional comments regarding the economic situation for crowdfunding, crowdinvesting and crowdlending platforms or what FinTech’s must be aware of in this business area