Real estate crowdfunding in Finland: the drivers of campaign success and the industry development

Abstract

The objectives of the study were to examine the phenomenon of real estate crowdfunding in Finland, to explain the success or failure of RECF campaigns, to understand the drivers behind industry development and to assess its future potential. The data was collected from the two main sources: interviews with the experts and the information from the websites of the crowdfunding platforms. The results of the study illustrate the present state of the real estate crowdfunding market in Finland, its peculiarities and commonalities compared to the US and EU markets. The study emphasizes the significance of understanding the motivation and background of the investors, suggests the actions of the fund seeker that ultimately lead to success. The research illustrates the environmental and industry factors shaping the industry and provides expectations and recommendations regarding future development. The results can be used by the real estate development companies planning to use crowdfunding as a fundraising tool, and by the real estate crowdfunding platforms. Further study is required to understand the real estate investors’ motivation and preferences and to develop an internationalization strategy for the real estate platforms.