Banking and crowdfunding: a complementary relationship

A springboard to a bank loan  

For over a decade, crowdfunding has stoked the enthusiasm of entrepreneurs the world over. Between 2012 and 2015, the amount of funds raised through crowdfunding increased by 175% to reach $34bn. By 2020, it may even reach $1 trillion. 

However, with the average campaign raising a total of €4,000, crowdfunding is rarely enough on its own to finance a project. In many cases, entrepreneurs launch a crowdfunding campaign in order to obtain a bank loan. They use it as a tool to increase their personal contribution and improve their loan application. That means banks and crowdfunding platforms have a mutual interest in working together.   

BNP Paribas, a partner of crowdfunding 

The Group has joined forces with crowdfunding platforms for several years, with the aim of supporting high-potential projects led by a new generation of entrepreneurs. From the bank’s perspective, a successful crowdfunding campaign provides a strong guarantee: it demonstrates the existence of a market, the entrepreneur’s professionalism and their capacity to mobilize future customers. All these criteria contribute to the project’s long-term viability.

In 2013, BNP Paribas teamed up with Ulule, Europe’s first crowdfunding platform. By supporting the site’s creators through several special operations (“1 clic pour 1” and “Ulule Tour” projects), the Group works to promote a better understanding of crowdfunding and its role in society.

In 2016, BNP Paribas Securities Services and SmartAngels, a crowdfunding platform dedicated to growing startups and SMEs, formed a strategic partnership based on blockchain technology.

By securing and standardizing the platform’s financial transactions, this technology simplifies the way businesses access funding from individual and professional investors. 

“We believe in the power of smart complementary action between bank funding and crowdfunding,” explains Marie-Claire Capobianco, Head of French Retail Banking and Executive Committee Member at BNP Paribas. 

BNP Paribas and Ulule: an innovative financing model  

In 2017, BNP Paribas and Ulule strengthened their partnership by creating a financing system that combines crowdfunding and bank loans. The idea is to enable project leaders, after conducting a successful crowdfunding campaign on Ulule, to receive a bank loan for an amount equal or greater to their campaign total, within 48 hours of submitting their application. 

The project leader can also take advantage of free banking services for one year and, best of all, three years of personalized support.