The Austrian Market for Crowdfunding
According to data from the latest report by Cambridge Centre for Alternative Finance on the global market of alternative finance and crowdfunding, Austria had a total funding volume of €35.1 million in 2018, up from €32.9 million in 2017, which corresponds to a modest growth rate of 6.7%. This places Austria’s crowdfunding market as number 22 in Europe and as number 46 in the worldwide crowdfunding statistics. The countries topping the list in Europe are the UK, the Netherlands, Germany, France, and Italy.
Below, you will find a complete list of all Austrian peer-to-peer lending platforms.
Table of Contents
Best Crowdlending Platforms in Austria
Here, you will find a list of the top peer-to-peer lending platforms in Austria. Under each platform, you will find a brief description of the platform and the type of peer-to-peer lending available for investing on the platform. The list is sorted alphabetically, but to promote platforms contributing to transparency in the market, we have placed the platforms sharing data about their funding volume and other relevant statistics on the top. If you see a platform missing, please feel free to submit the platform by using the submit formula located in the sidebar of this page.
Rendity facilitates crowdfunding in the area of real estate business lending to Austrian and German residential and commercial property at a minimum investment of 500 Euro. The platform offers both lending to already built rental real estate as well as new development & construction projects. Rendity was founded in 2015 by Lukas Muller, Paul Brezina and Tobias Leodolter as an Austrian company. The office and company is located in Austria, but the platform also offers German projects. All loans are in Euro (EUR). You can get a first time investor bonus of 25 Euro when signing up through our link, read more below.
Rendity offers a €25 bonus to all new lenders, to get the bonus you must invest in a project (minimum €500). Use this link before registering to activate the bonus.
To invest at Rendity you must have a European bank account and be above the age of 18.
Austrian and German real estate developers with a financing volume of €500,000 to €2 million and a duration of 12 – 36 months.
Finnest facilitates crowdfunding in the area of business lending to medium-sized companies in Austria. The platform offers loans to mostly larger companies and have some projects with over 5 million euro in funding. Finnest was founded in 2014 by Guenther Lindenlaub and Joerg Bartussek as an Austrian company. The office and company is located in Austria, but the platform is expanding into other markets. All loans are in Euro (EUR).
Any person of at least 18 years old or company registered in Austria, Switzerland or Germany with a EU bank account can invest on Finnest.
Any company with a yearly turnover of at least 10 million euro that have been operating for at least 10 years can apply for a loan through Finnest.
Home Rocket facilitates crowdfunding in the area of real estate business lending to Austrian and German residential and commercial property at a minimum investment of 250 Euro. The platform offers both lending to already built rental real estate as well as loans to new development & construction projects. Home Rocket was founded in 2015 as a part of the Rockets Holding platforms of Austrian companies. The office and company is located in Austria, but the platform also offers German projects. All loans are in Euro (EUR).
Anyone who is of legal age and resides in Austria or Germany can invest in professional real estate projects. Corporations and partnerships can also invest – this requires representation by an authorized, natural person.
Austrian and German real estate developers with a financing volume of €200,000 to €2 million and a duration of 12 – 60 months.
Green Rocket facilitates crowdfunding in the area of SME business lending to companies in Austria and Germany at a minimum investment of 250 Euro. The platform offers lending to sustainability in the areas of energy, environment, mobility and health. Green Rocket was founded in 2013 by Peter Garber and Wolfgang Deutschmann as an Austrian company. The office and company is located in Austria, but the platform also offers German projects. All loans are in Euro (EUR).
Basically every private person can invest in sustainable companies that are of legal age and reside in Austria or Germany. Corporations and partnerships can also invest – this requires representation by an authorized, natural person.
Austrian and German businesses with sales of minimum EUR 50,000 and legal form as a corporation (GmbH or AG). It requires the need of a financing volume of €200,000 to €2 million and a duration of 12 – 10 years.
Tausend Mal Tausend
Tausend Mal Tausend facilitates crowdfunding in the areas business lending and reward based to Austrian SME companies at a minimum investment of 100 Euro. The platform offers lending and/or reward-based crowdfunding to entrepreneurial innovation projects. Tausend Mal Tausend was founded in 2012 as an Austrian company and is owned by Innovation Service Netowrk GmbH and Business Revolution Society. The office and company is located in Austrian and the platform is only crowdfunding Austrian companies. All loans are in Euro (EUR).
Taxation on Peer-to-Peer Lending in Austria
P2P Lending Regulation in Austria
Since there is still a lack of common rules for crowdfunding in the European Union, regulation of peer-to-peer in Austria is based on national legislation though this might change in the foreseeable future as the European Commission in March 2018 presented a proposal for a regulative framework on crowd and P2P finance as part of their Fintech Action Plan.
Below, you will find an overview of some of the most important aspects of the regulatory framework for lending-based crowdfunding platforms operating in Austria. These highlights can also be found in a paper from 16 November 2018 published by the OECD Economics Department on Regulatory framework for the loan-based crowdfunding platforms.
- Legal status for lending-based crowdfunding platforms: There is no single legal framework for crowdfunding in Austria. The Alternative Investment Act (Alternativfinanzierungsgesetz – AltFG) establishes a transparent regulatory framework facilitating equity-based (crowdinvesting) and lending-based crowdfunding, if certain conditions are met. If these conditions are not met, crowdfunding is governed by the general regulatory framework, in particular the Capital Market Act (Kapitalmarktgesetz – KMG). At the moment, an amendment of the Alternative Investment Act is in the making with the intention to streamline the two existing systems of the AltFG and the KMG.
- Date of the legislation: 1 September 2015
- Name of the supervisor: The Austrian Ministry for Digital, Business and Enterprise.
- Type of loan/debt security: Bonds and subordinated loans (no unconditional repayment claim). The same act covers shares, participation rights, and silent partnerships.
- Minimum capital requirements: No.
- Automatic Investing?
- Secondary market?
- Clients money: Should rely on the payment institution.
- Max size of security: €5 million per emission. However, over a period of seven years, a maximum of €5 million may be collected, if no repayments are made in the meantime.
- Max invested amount: €5,000 per investor and project (within 12 months). Exception: Professional investors or legal persons, issuers who declare that their investment is limited to 10% of all their capital assets or to the double amount of their monthly income.
- Disclosure and risk warnings: Details regarding the operator of the internet platform: legal form, company, registered office, information about the owners as well as disclosure of all beneficial owners involved with at least 25%, in the case of legal persons with an excerpt from the corporate register, objective of the company, current annual financial statement; the selection criteria applied to projects and the fees charged; Indication of the nature, frequency and amount of fees paid by investors and issuers. The information sheet that complies with the terms of the AltFG and the Alternative Financing Information Regulation (Alternativfinanzierungs-Informationsverordnung – AltF-InfoV). The information should be checked for coherence, completeness and comprehensibility. The issuer`s business plan, annual financial statement and terms and conditions that apply between the issuer and the investor.
- Do lenders have to pass a financial literacy test?
- Business continuity requirements:
- Can platforms invest in loans/securities that they facilitate? The platform itself may only act in the capacity of investor under certain conditions: It is permitted if it is a minor investment, which is solely intended to facilitate the flow of information between issuers and investors, and if expressly referred to.
- Authorisation of platforms and professional requirements for applicants: There is no particular authorization process for platforms.