2.2.1 – Crowdfunding Industry Trends

Key trends in the target market, which include an industry-wide focus on ESG principles as well as disruptive and sustainable technologies, can be summarised as follows:

	Growing ESG Focus There is a noticeable shift towards ESG principles in crowdfunding. Investors are increasingly favouring projects and companies that demonstrate a commitment to sustainability, ethical practices, and social responsibility. 7
	Sustainable Technology Projects CrCrowdfunding platforms are witnessing a surge in projects related to sustainable technologies, such as renewable energy, green tech, and sustainable agriculture. This trend aligns with the broader European commitment to environmental sustainability and the transition to a greener economy.
	Impact Investing The intersection of ESG principles and crowdfunding has given rise to a more targeted form of investing known as impact investinThe intersection of ESG principles and crowdfunding has given rise to a more targeted form of investing known as impact investing. This approach focuses on generating both financial returns and positive social or environmental impacts.
	Integration of Tech Innovations Advanced technologies such as AI, blockchain, and data analytics are increasingly being integrated into crowdfunding platforms. These technologies enhance operational efficiency, improve risk assessment capabilities, and provide better transparency and security for investors.
	Democratisation of Investing CroCrowdfunding platforms are democratising access to investment in ESG and sustainable projects. They allow individual investors, to participate in funding ventures that align with their values and contribute to a sustainable future.

The European crowdfunding market is at a transformative juncture, with ESG and sustainable technologies playing a central role in its evolution

The market growth is underpinned by supportive regulatory frameworks, technological advancements, and a shift in investor consciousness towards sustainability and social responsibility..

Beyond the initially targeted crowdfunding market, the infrastructure being built by TRRUE will, we believe, generate revenue opportunities across multiple sectors. International ESG fund assets reached $2.5 trillion in 2022 ($2T+ in Europe alone),8 while the nascent ESG reporting software market was estimated at $0.7 billion, with a compound annual growth of 15.9% predicting it to reach $1.5 billion by 2027. 9

As these markets continue to mature, the Trrue Ecosystem described by this White Paper is poised to play a crucial role in financing Europe’s sustainable transition and fostering a more inclusive financial ecosystem.