There alternative finance slows down the stepbut it doesn’t stop, and it could grow again in 2025. This is what emerges from the latest research on the sector, carried out by Polytechnic of Milanwhich highlights a minus sign for all seven sectors of alternative finance to bank credit as a source of financing for SMEs: minibonds, crowdfunding, invoice trading, direct lending, tokenization and crypto-assets, private equity and venture capital, listing in Bag.
The research was presented during Alt-Finance Dayorganized by Innexta, Unioncamere and the Chamber of Commerce of Milan Monza Brianza Lodi.
Performance in the first half of 2024
After the slight decline in 2023, i seven segments of alternative finance confirm a negative trend also in the first half of 2024:
- minibond they raised 202 million (609 million in the last twelve months), with a difference of -33% compared to the same period of the previous year;
- equity and lending crowdfunding there are around forty authorized platforms in Italy which have collected 48 million euros (-17%) and 88 million euros (-3%) respectively;
- private equity and venture capital they raised 370 million in 3 operations and 494 million in 193 operations respectively
- new listings on the stock exchange have raised 72 million euros, bringing the number of companies listed on the EGM market (Euronext Growth Milan) to 206 as of 30 June 2024.
There is optimism for 2025
“There are all the conditions to affirm that the development of alternative (or complementary) finance to bank credit in Italy is continuing to generate tangible benefits and that, thanks to the hoped-for reduction in interest rates, 2025 could mark a turning point“, declares Professor Giancarlo Giudici of the Polytechnic of Milan, author of the research.
For the expert there are two elements transversal aspects that lead us to be optimistic: on the one hand, legislative and regulatory innovations who have “raised the bar” in the segments most exposed to the risks of opportunistic behavior, such as crowdfunding and crypto-assets; on the other, simplification of the more traditional segments like the listing on the stock exchange.
“Technological evolution and fintech – underlines Giudici – are certainly creating more and more opportunities for SMEs that want to raise capital. However, we need more players in the supply chain who can stimulate both the demand for capital from entrepreneurs and the supply from investors.”
What is alternative finance
Alternative finance is a tool to support small and medium-sized enterprisesan alternative to the traditional channel represented by access to bank credit. It is a type of finance that happens for disintermediated channelswhich leverage investment or professional funds, asset managers and more.
