LenderKit Visits The Place to Crowd by Financement Participatif France
On February 14, 2023, LenderKit visited The Place to Crowd event organized by the Financement Participatif France at the Le Centquatre-Paris. The event gathered crowdfunding experts, lawyers, regulators and service providers under one roof, and it was super engaging, insightful and interesting.
At the event, LenderKit was exhibiting, moderating a panel and actively participating in the life of the crowdfunding community. We were happy to have met our good friends and partners as well as new people whom we are excited to work with in the future.
Cheers to everyone who has dropped by our booth to say “Hi!” including Rotem Shneor, ecoligo, Bou DIARRA, StartGreen Capital, ComplyAdvantage, Qard, Nøelse, Lemonway, Franck Manoukian, Mintos, Prince Baah-Peprah, Jeantet, Dogfinance and Lendahand.
It was also a big pleasure to speak with the industry leaders such as Karsten Wenzlaff and Oliver Gajda.
What you will learn in this post:
Key highlights of the event
- The real estate sector is growing and democratizing, especially with the introduction of new models such as buy-to-let and alternative fractional ownership.
- In Italy, only traditional equity/security was possible, and this is now shifting towards lending.
- Lending is mostly concentrated in Estonia and Germany, but the markets are also evolving and creating new lending models such as buy-to-let, revenue financing, etc.
- The primary problem with the German ECSP adoption is that, according to their current law system, crowdfunding platforms have liability conditions and platforms could get into trouble for promoting a bad project on a legal level. That means that either the crowdfunding sector will stop working completely or evolve into something that could work for local players.
- SME and consumer lending is currently under monopoly in France because of the law specifics. To enter the lending market in France you need to be backed by a credit bureau and the only way to do that is through banks, but banks are really slow and that’s not something that fits the crowdfunding industry.
- In general, crypto doesn’t seem to be a silver bullet, but blockchain and tokenization should meet global adoption and demand. The main problem with crypto is the lack of trust and lending without collateral, meaning that the industry is not mature enough yet.
- The industry is excited about the soul bound tokens (SBT) which are non-transferable tokens representing a person’s identity using blockchain technology.
- Once again, platforms are encouraged to apply for the ECSPR license as soon as possible because there are risks of being late which could potentially lead to operational roadblocks or even a full stop of the crowdfunding platform’s operations.
About Financement Participatif France
Financement Participatif France (FPF) is an association under the 1901 law whose objective is the collective representation, promotion and defense of the rights and interests of participants in crowdfunding.