Mamacrowd AI Overview on 09/2025

Investors 📊 Mamacrowd Overview – Italy’s Leading Equity Crowdfunding Platform

Mamacrowd is Italy’s largest equity crowdfunding platform, enabling retail investors to fund innovative startups, small businesses (PMI), and real estate projects fully online. Founded in 2016 and authorized by CONSOB (Italian financial regulator), it operates under the new EU crowdfunding rules as a regulated provider.

Key advantages include its scale (over 322 projects funded with ~€346 million raised as of early 2025) and a growing community of 215,000+ investors. Backing by the Azimut Group (a major asset manager) provides additional credibility and co-investment opportunities. Investors can benefit from Italian tax incentives (e.g. ~30% tax deductions for eligible startup investments) and join promising Made in Italy ventures 🇮🇹.

However, risks are high – startup investments can fail (total loss possible) and are illiquid with no guaranteed exit. Investors should diversify and be prepared for a long-term commitment with no capital protection 😬.

💼 Mamacrowd Product Offerings and Investment Model

Investment Products: Mamacrowd offers equity investments – you buy shares (quotas) in unlisted companies or special-purpose vehicles for real estate deals (no standard loans or bonds for retail, though new EU rules allow convertibles and other instruments). In startup campaigns, your funds typically go into a capital increase of the company, making you a minority shareholder. Real estate projects are structured via an SPV (an LLC that buys/develops a property), and investors get equity in that vehicle with returns from eventual property sales.

Return Generation: There are no fixed interest or dividends – returns come only if the business succeeds and exits (e.g. gets acquired or goes public), or if profits are shared on a sale. For example, Mamacrowd’s first real estate exits in 2023 returned +19–22% ROI after ~2–3 years to investors when the apartments were sold. Startup exits can potentially be higher (SportClubby, which raised €719k on Mamacrowd in 2019, was acquired in 2024 by a larger group), but many investments may also yield zero if the startup fails.

Geography & Sectors: Campaigns are almost exclusively Italian companies or projects, spanning tech, food, fintech, etc., plus real estate developments in Italy. Mamacrowd has no strict sector limits – it hosts B2C brands (e.g. Baladin brewery raised €5 M in 2024) and B2B ventures (~40% of 2024 deals).

Typical Investment Terms: Minimum investments start around €250 for startup deals (some real estate offers require €1k–€5k). There’s usually no maximum per investor beyond legal limits, and campaigns can raise up to €5 M (the EU cap without a prospectus).

Time Horizon: These are medium-to-long term investments – startups often need 5–7+ years to an exit (if any), and real estate projects might target 1–3 year timelines.

Major Risks: Investors face high risk of total loss (if the startup goes bankrupt, shares become worthless) and illiquidity (no secondary market exists to sell shares easily). Even successful companies can take years to materialize returns, and there is no interim liquidity or guarantee. Real estate carries development risks (construction delays, market downturns) which can postpone or reduce returns, as seen in some delayed projects industry-wide.

In sum: Mamacrowd’s product lets you become a shareholder in emerging ventures with high upside 📈, but you should only invest amounts you can afford to lock away and potentially lose entirely.

🏢 Mamacrowd Company Background, Team & Regulation

Founding & Ownership: Mamacrowd was launched in 2016 by startup investor network SiamoSoci s.r.l., under founder Dario Giudici (a pioneer in Italy’s startup scene). In early 2022, the platform’s growth attracted Azimut Group, one of Italy’s largest independent asset managers, which acquired a 50.1% majority stake. Mamacrowd is now part of the Azimut fintech ecosystem, giving it strong financial backing and integration with Azimut’s venture funds.

Management Team: Dario Giudici led Mamacrowd as CEO for many years and remains a key figure (President), while in 2023 Maurizio De Gregorio took over as CEO to drive the next growth phase. The board includes Azimut senior executives since the partnership, and the team combines startup investment experts and finance professionals.

Partners & Backers: Besides Azimut, Mamacrowd collaborates with incubators and venture capital firms – campaigns often involve co-investment by funds like Azimut ALIcrowd, CDP Venture Capital, etc. For example, Azimut’s ELTIF ALIcrowd funds are co-managed with Mamacrowd, investing in select offerings to boost funding. Mamacrowd also partners with fintech providers (e.g. Fabrick for payment solutions) to streamline transactions.

Legal Structure: The platform is operated by Mamacrowd S.r.l., headquartered in Milan and fully owned by Azimut since 2022. Previously it was managed under SiamoSoci, which had been matching investors with startups since 2011.

Regulation & Licenses: Mamacrowd is licensed and regulated – it was originally authorized by CONSOB in 2016 as an equity crowdfunding portal, and in November 2023 it obtained the new EU ECSP (European Crowdfunding Service Provider) authorization. Its current license (Consob resolution no. 22876 of 08/11/2023) allows offering crowdfunding services across the EU in compliance with Regulation (EU) 2020/1503. The platform is supervised by CONSOB and must adhere to strict investor protection rules. Mamacrowd proudly notes that it operates under a secure and transparent framework, though investors should note that these investments are not covered by deposit insurance or investor compensation schemes (they are not like bank deposits).

Overall: The company’s strong ownership and regulatory status inspire confidence 💪, making Mamacrowd a well-established player in Italy’s alternative investment market.

📈 Mamacrowd Volumes and Performance (2024–2025)

Funding Track Record: Mamacrowd has consistently ranked #1 in Italy by equity crowdfunding volume since 2017. As of early 2025, it reports cumulative funding over €340 million raised for 320+ projects (startups, SMEs, and real estate). This is a dramatic rise from 2021 when total raised crossed €100 M for the first time.

Recent Annual Results: 2024 was a record year – Mamacrowd facilitated €41 million in funding across 42 campaigns, involving almost 5,000 individual investments. Of that, €31.9 M went into startup/SME deals and €9.2 M into real estate projects. Mamacrowd alone captured about 63% of Italy’s equity crowdfunding market for startups in 2024 by capital raised, underlining its market leadership. The platform’s volumes have been growing: for example, in H1 2023 it raised €14 M (up 54% vs H1 2022).

Investor Base: Over 215,000 users are registered on Mamacrowd, and tens of thousands have invested – in 2024 specifically ~5k investors participated in deals. Many are repeat investors building portfolios (the average campaign in Italy has ~80 investors contributing ~€4.4k each).

Returns and Defaults: Since equity crowdfunding is relatively young, realized returns are just emerging. Mamacrowd saw its first successful exits in 2023: two real estate development projects in Milan (G311 and Millequaranta) completed and paid out profits to investors – delivering ~19–22% total ROI over about 2–3 years. On the startup side, a few companies funded on Mamacrowd have had exits: SportClubby (sports app) was acquired in 2024, and Scloby (Tilby) was acquired in 2020, potentially giving early investors significant gains. However, not all campaigns succeed long-term. Some funded startups inevitably fail – a recent industry study found ~15% of Italian equity crowdfunding issuers had gone into liquidation within 3 years. When that happens, investors lose their capital (no repayments).

Portfolio Performance: Precise overall ROI data for Mamacrowd’s investors isn’t published (and one can’t calculate a simple “average” return given most investments are unrealized and skewed by a few big wins). Many startups are still growing with no liquidity events yet, so investor returns vary case by case – from 100% loss in worst cases up to multi-fold gains in rare successes. Real estate deals tend to have clearer outcomes: apart from the exits mentioned (15–22% returns), other property projects are ongoing; some have faced delays due to pandemic and market conditions (possibly pushing ROI out by months/years).

Defaults/Overdues: In equity campaigns, there’s no concept of a scheduled payment default like in loans – instead the risk is a company failing. That said, for real estate equity, a delay in exit is akin to an “overdue” return. By late 2023, rising interest rates and construction cost issues caused many crowdfunding real estate projects (across platforms) to run late, some by over a year. Mamacrowd had a few projects complete slightly late (e.g. G311 finished a few months behind schedule due to COVID-19), but still delivered the expected returns.

Overall: Mamacrowd’s dominance in Italy’s market (over €159 M share by mid-2023) suggests strong deal flow and investor trust. All figures are as of 2024–2025, and the platform regularly updates its stats on their site to maintain transparency.

🔍 Mamacrowd’s Project Selection and Risk Management

Rigorous Selection: Mamacrowd emphasizes rigorous due diligence in vetting projects before listing. It has an internal team of analysts who select only a fraction of applicant companies, examining all key factors: product feasibility, market size, competitive advantage, the founding team’s capacity, any revenue traction or patents, and presence of lead investors or incubators backing the startup. The goal is to filter for promising businesses that can reduce investment risk (though not eliminate it). In practice, many campaigns on Mamacrowd come through reputable incubators or have venture investors on board – for example, deals often note if a professional fund (like Azimut’s ALIcrowd, CDP, or other VCs) is co-investing, which signals confidence.

Risk Scoring: The platform doesn’t publish a simple “risk rating” for each offer; instead it provides a detailed Offer Document with financials and risk factors, and unsophisticated investors must pass a knowledge quiz and loss simulation before investing. This compliance step ensures newcomers understand the risks (required by regulation).

Sector Strategy: Mamacrowd is sector-agnostic but balances its portfolio – it hosts startups from tech to food, consumer brands to deep-tech, as well as real estate projects which add a more tangible asset class. Investors can also see if a company is an “Innovative Startup/SME” (a status in Italy that confers tax benefits and implies R&D focus). Mamacrowd’s website encourages building a diversified portfolio across multiple companies and sectors to mitigate risk.

Geographic Focus: So far, nearly all campaigns are Italian companies or developments, which means exposure mostly to the Italian economic context. Under the new EU rules, Mamacrowd can onboard projects from other EU countries, but the CEO noted they will carefully assess cross-border expansion.

Monitoring & Reporting: After a campaign closes, the company is expected to keep its new crowd investors informed. Mamacrowd has introduced tools to facilitate this – in 2024 it launched services to help startups communicate updates to their shareholders regularly (for business results, etc.). The platform even offers a digital system for issuing tax break certificates to investors, simplifying the paperwork for claiming tax deductions. Nonetheless, investors have sometimes complained that updates can be sparse or delayed if a project struggles. Mamacrowd is learning from this and encourages more frequent communication, recognizing that transparent investor relations are crucial for maintaining trust.

Summary: Overall, Mamacrowd’s risk management approach is to pre-select quality deals 🔎, leverage external validation (VC co-investors, etc.), and comply with strict regulatory checks – but investors must still perform their own due diligence and acknowledge the high-risk nature of these investments.

🛠️ Mamacrowd Platform Features and Functionality

Interface & Accessibility: The Mamacrowd platform is designed to be user-friendly while offering some advanced features for active investors. The website supports both Italian and English languages, reflecting its readiness for international users (though most activity is Italian). Investors have a personal dashboard to track their portfolio of funded projects, view updates, and access documents like shareholder certificates.

Deal Discovery: Campaigns on Mamacrowd have comprehensive pages with the pitch, business plans, team info, discussion sections, and the regulatory Key Information Document. There is no automated “robo-advisor” or auto-invest option – users manually choose each project to back (which encourages them to evaluate each opportunity individually). However, Mamacrowd does highlight when a campaign is nearly full or if notable investors are on board, to aid decision-making.

No Secondary Market (Yet): At present, there is no built-in secondary market on Mamacrowd for trading your shares. This means you generally must hold investments until an exit. Shares are transferable privately (the site provides guidance for selling your stake via a notary or using a nominee service), but it’s cumbersome for an individual to find buyers without an official marketplace. The company is exploring future solutions – e.g. by adopting dematerialized shares and acting as an Issuer Agent with the Italian central securities depository, they’ve set groundwork that could ease share transfers or a bulletin board system in the future.

Power User Program: Mamacrowd offers a special Power User status for frequent investors 🏅. If you’ve made at least one investment in the past 12 months, you automatically become a Power User, which grants early access to certain new campaigns and even better investment terms on some offers. In practice, some campaigns have a 10–30 day private phase open only to Power Users (and professional investors) before the general public can invest. This incentivizes regular investors and replaces an older “early bird” system.

Investor Tools: Mamacrowd’s platform provides various tools and info to help with investment decisions. They maintain an extensive FAQ and Investor Guide section covering everything from how equity crowdfunding works to risk warnings and tax matters. They also offer a “Fund & Crowd” initiative (in partnership with Azimut) where startups fundraising on Mamacrowd can apply concurrently to the Azimut ALIcrowd venture fund – if selected, the fund invests alongside the crowd, giving Power Users a chance to invest on the same terms as a VC.

Technical Aspects: Investing is done online through the platform – once you choose a project and amount, you complete a brief suitability quiz (if not a professional investor) and then fund your investment via bank transfer or online banking (no extra fees for using Mamacrowd’s payment portal). Mamacrowd uses secure escrow processes: funds are typically held by partner banks until the campaign succeeds and the capital increase is finalized. There’s no mobile app yet, but the site is mobile-responsive.

Currencies and Payments: All investments are in Euros (€) and usually come from EU bank accounts. The platform does not support credit card funding or multiple currencies – it’s focused on the eurozone framework.

Notifications and Updates: Investors receive email updates when investee companies post news or when key milestones (e.g. funding target reached, campaign closing) happen.

Summary: Overall, Mamacrowd provides a straightforward crowdfunding experience with some unique perks (like Power User early-bird access and integrated VC funding), while sticking to the core model of letting investors pick and choose individual deals.

💳 Mamacrowd Fees and Pricing Transparency

Investor Fees: One of Mamacrowd’s selling points is its investor-friendly fee structure – in general, investors pay no direct fees to use the platform. There are no signup fees, no transaction fees, and no performance fees charged by Mamacrowd on returns. If you invest €500, the entire amount goes into the campaign (aside from any small bank wire fee your own bank might charge). Mamacrowd explicitly states that it does not charge investors (and if that ever changed for a specific service, they would disclose it clearly in the offer documents). For example, investing and holding shares via their optional nominee (trust) service is currently free of charge for the investor.

Platform Revenue Model: Mamacrowd earns its money from the fundraisers (the companies seeking capital). When a campaign is successful, the company raising funds pays Mamacrowd a success commission – typically a percentage of the amount raised. This commission rate can vary per deal (often in the mid-single digits to low teens percentage, negotiated case by case based on the campaign size and complexity). The exact fee is usually outlined in the contract with each offeror. Crucially, this fee is only due upon success – if a campaign fails to reach its minimum target, companies owe nothing (and investor pledges are returned). There are no upfront listing fees mentioned, meaning Mamacrowd assumes the upfront costs of due diligence and marketing the campaign, recouped only if the raise closes.

Other Potential Costs: In some cases, a third-party might charge a fee – for instance, the bank or payment institution that handles the funds might levy a small charge for processing investments. Mamacrowd notes that any such costs “for the transmission of orders to the entity executing the investment” will be indicated in each offer’s info sheet. This typically is not noticeable for investors (usually zero for a simple SEPA bank transfer within Europe). There are no withdrawal fees because you generally cannot withdraw mid-campaign (you can only request to cancel during the legal 5-day cooling-off period without penalty).

Exit Fees: Mamacrowd does not take a cut of your profits on exit. If your investment yields a return (say a buyout), 100% of that gain goes to you (minus any taxes). The platform also does not charge for selling your shares privately; however, you might incur notary or legal fees if you arrange a private sale of your equity.

Transparency: Mamacrowd maintains a dedicated page detailing investment-related costs, which currently reiterates that there are no portal fees to investors and describes the success fee to companies. This transparency and alignment (they only get paid when you invest in a successful raise) are viewed positively by investors.

Summary: For companies, the cost of raising on Mamacrowd is competitive when considering the marketing exposure and capital access they gain. Overall, Mamacrowd’s pricing is very straightforward 💶 – free for investors to use, and a success-based commission for issuers – with no hidden charges cropping up unexpectedly.

⚠️ Negative Publicity and Controversies Surrounding Mamacrowd

Reputation Overview: Mamacrowd has generally maintained a good reputation, but it hasn’t been entirely free of criticism or issues.

Misleading Campaign Case (2019): In mid-2019 a controversy arose when a startup raising funds on Mamacrowd (claiming to use AI chatbot technology) was accused by observers of providing dubious information to investors 👎. A prominent Italian tech blogger highlighted inconsistencies in the startup’s claims, sparking concerns about due diligence standards. Mamacrowd responded by suspending and evaluating the campaign, but the incident was used as an example in media of the need for stronger checks in the ecosystem. It did not result in regulatory sanctions, but it was a red flag that showed even on a vetted platform, a determined founder might over-hype — reinforcing the importance of investor caution and cross-checking claims.

Project Delays and Investor Frustration: In 2023–2024, as many real estate crowdfunding projects experienced delays (due to inflation, interest rate hikes, etc.), some Mamacrowd users joined others online in voicing frustration. A February 2024 report noted “dozens of real estate projects financed via crowdfunding, both lending and equity, are delayed by months or even years” and investors vented in reviews and forums. The common complaint was not just the delay (which is a known risk) but the lack of communication from some platforms during these delays. Mamacrowd was mentioned among major portals being urged to improve their update frequency. This is a sector-wide issue, but since Mamacrowd had a few projects running longer than expected (e.g. one Milan project took 33 months vs 30 planned), it also faced these perceptions.

Transparency Critiques: A few investors have criticized Mamacrowd for not providing easy access to statistics on the outcomes of past campaigns. For instance, a Trustpilot reviewer in late 2023 wrote that they wished for “statistics about the outcomes of projects to evaluate how many succeed or fail,” implying Mamacrowd could be more transparent on success rates. Mamacrowd does publish aggregate numbers (funded amounts, etc.) but not a detailed breakdown of how each funded company is faring post-raise. The platform may improve this as the market matures.

Regulatory Compliance: We found no records of regulatory sanctions or warnings issued against Mamacrowd by CONSOB. In fact, the platform successfully transitioned to the new EU license in 2023, which indicates its compliance is solid. (By contrast, some smaller Italian platforms struggled with the new licensing, but Mamacrowd was approved on time.) CONSOB’s own investor warnings mostly remind that equity crowdfunding is high risk; Mamacrowd prominently displays CONSOB’s required risk warnings on its site.

Investor Disputes: There have been isolated complaints about account issues (one user noted a glitch creating duplicate accounts via digital ID login, which was resolved). Also, the slow pace of exits has led some to express impatience, but this is inherent to the product rather than platform misbehavior. Mamacrowd is a member of Italy’s crowdfunding association and adheres to industry best practices. It has a formal complaints policy on its site, and unresolved disputes can be escalated to the Financial Disputes Arbitrator (ACF), an ombudsman service. No high-profile disputes have been reported publicly.

Summary: Mamacrowd’s negative publicity has been limited to a few scares and criticisms – notably a flagged campaign in 2019 and the general discontent around project delays – but there haven’t been scandals like fraud or platform insolvency. Investors should still stay vigilant (e.g. read independent reviews of startups) and maintain realistic expectations to avoid disappointment.

🏆 Mamacrowd Success Stories and Milestones

Success Stories & Achievements: Despite the risks, Mamacrowd has produced some notable success stories that demonstrate the potential upside of crowdfunding 🎉.

Record-Setting Campaigns: Mamacrowd has hosted some of the largest crowdfunding raises in Europe. In 2024, two Mamacrowd campaigns – Baladin (a famous craft brewery) and Macelleria Zivieri (an Italian gourmet meats company) – ranked in the Top 5 equity crowdfunding campaigns Europe-wide by capital raised. Baladin raised a whopping €5 million from over 2,000 investors (leveraging its loyal customer base), showing the power of B2C brands turning fans into shareholders. Earlier, in 2018, StartupItalia (a digital media startup) raised over €2.6 M on Mamacrowd, a national record at that time.

Exits and Investor Returns: One of the first big exit wins came when Scloby, a cloud POS startup that raised €272k on Mamacrowd in 2017, was acquired 100% by the Zucchetti Group (a large software company) in 2020. Scloby (now rebranded as Tilby) continued to grow under Zucchetti, validating the investment – though exact ROI wasn’t disclosed, early backers likely profited from the buyout. In early 2024, SportClubby, a sports club management app that had raised €719k on Mamacrowd in 2019 at a €3.2 M valuation, was acquired by Spanish unicorn Playtomic. This exit not only provided a payoff to its 107 crowd investors, but also underscored Mamacrowd’s ability to pick startups that attract international buyers. Mamacrowd has also seen companies progress to public markets: Biogenera, a biotech that raised €1.6 M on the platform, went on to pursue a listing on Euronext Paris in 2024 as part of its growth.

Real Estate Success: Mamacrowd’s move into real estate crowdfunding in 2020 quickly yielded positive results. The two Milan development projects (G311 and Millequaranta) were completed and fully sold, allowing investors to exit with returns of ~15–22% as noted earlier. These were among the first real estate equity exits in Italy’s crowdfunding sector, achieved despite pandemic-era challenges – G311 even hit its targets with only a slight COVID delay. The successful track record in property deals has encouraged Mamacrowd to expand further in real estate (e.g. launching rental yield projects in 2023).

Platform Growth Milestones: Mamacrowd’s journey has been marked by rapid growth. In 2021, it crossed €59 M raised in a single year (a record at the time) and surpassed 100,000 registered investors. By the end of 2024, total capital raised reached ~€240 M across 223 funded companies (and has grown further to €346 M by early 2025). The partnership with Azimut in 2022 was a major vote of confidence – Azimut’s investment and integration of Mamacrowd meant more resources and the launch of new products like the ALIcrowd funds dedicated to Mamacrowd startups. In terms of accolades, Mamacrowd has been recognized as the top Italian crowdfunding portal in multiple industry reports and has been featured in the FT 1000 Europe’s Fastest Growing Companies listing (via its parent company Azimut’s ventures). It also won the trust of Italy’s investor community – evidenced by funding rounds closing in mere hours (e.g. a Florence real estate project hit €1.3 M in 48 hours in 2023).

Awards & Initiatives: While specific awards aren’t widely publicized, Mamacrowd often appears in fintech and startup conference rankings. It has also been active in educational initiatives, publishing an annual “Crowdinvesting Report” in collaboration with the Politecnico di Milano, and working with Italian Tech Alliance on performance studies. In 2023 Mamacrowd proudly noted that, with the new EU regulation, it can help Italian companies raise money across Europe, ushering in a new era of growth.

Summary: Every success story – whether a big funding round or a lucrative exit – adds to Mamacrowd’s credibility and momentum, showing that equity crowdfunding can deliver results for investors and founders alike 🚀.

Is Mamacrowd safe and legit to use?

✅ Yes. Mamacrowd is a legitimate, regulated platform. It’s authorized by CONSOB in Italy and complies with the EU Crowdfunding Regulation (ECSP). The platform is owned by the reputable Azimut Group and has been operating since 2016 without major issues. Investor funds go directly into safeguarded accounts for each campaign; Mamacrowd never takes deposits itself (so there’s no platform insolvency risk to your money in transit). However, “safe” doesn’t mean your investment is guaranteed – the investments themselves are high-risk (you can lose money if the startup fails). Mamacrowd provides the service in a safe, transparent manner, but you must judge each investment’s risk. Always read the risk warnings – these notes remind that Mamacrowd investments are not covered by any deposit guarantee or investor compensation schemes. In summary, Mamacrowd is a trusted platform under regulatory supervision, but the safety of your capital depends on the success of the businesses you back.

What returns can I expect on Mamacrowd investments?

It varies greatly and there is no fixed “interest rate”. Equity crowdfunding returns are uncertain – you are buying a share in a company or project, so your return comes if and when that venture increases in value or pays dividends. Many startups will not yield any return (they might even go bust, meaning a -100% return). A few might become very successful, giving large gains (e.g. an acquisition or IPO could potentially multiply your investment). It’s a power-law distribution: a handful of big winners can offset many losers. For example, one Mamacrowd startup, SportClubby, was acquired after 4 years – early investors would have profited from the sale. On the other hand, some companies have quietly shut down, leaving investors with losses. Real estate projects tend to have more predictable ranges – recent exits on Mamacrowd’s property deals delivered around +15% to +22% total return over ~2 years. That equates to roughly 7–10% annualized returns, which is attractive, though not every project will hit that. Importantly, no returns are guaranteed. You should realistically expect that some of your investments will fail, some will just break even, and a few might succeed spectacularly. The platform itself does not quote an “average return” because it’s too early to average out; crowd investors should focus on building a portfolio so that a couple of wins can make up for losses. Aim for long-term, venture-style returns rather than quick income.

What happens if a project fails or goes bankrupt?

If a startup you invested in fails (goes bankrupt or liquidates), unfortunately you lose your investment – equity crowdfunding offers no capital guarantee. You are a shareholder, and shareholders are last in line in insolvency (typically nothing is left for them). There is no compensation fund that will reimburse you . Essentially, the risk is the same as any venture capital or angel investment: you bear the full downside. If a real estate SPV failed (e.g. project abandoned), the outcome would depend on any remaining assets, but investors could similarly lose a significant portion. Mamacrowd’s role is only to intermediate the deal; it doesn’t cover losses. They do screen projects to avoid bad apples, but failures can still occur due to market conditions or execution mistakes. On the flip side, if a company does extremely well, your shares could be worth much more – there’s no cap on upside. It’s important to mentally prepare for the possibility that many of the startups you back won’t succeed. Statistics from 2014–2021 show about 15% of equity-crowdfunded companies in Italy had gone into liquidation within 3 years, and a larger portion may stagnate without giving exits. So failure is a known risk – it’s part of the model. Mitigate it by diversifying and investing amounts you can afford to lose. Mamacrowd does not currently publish default rates in an easily accessible way, but industry-wide data suggests a portion of campaigns will fail. Remember, one of the reviews pointed out the desire for more transparency on outcomes – as an investor, it’s good practice to follow the news on the companies you invested in (outside of just platform updates) so you aren’t caught off-guard by any trouble signs.

What are the main risks of investing through Mamacrowd?

Investing via Mamacrowd carries all the risks typical of early-stage investing. The primary risks are: 1) High chance of failure: Startups are inherently risky – a significant number will fail to execute their plan or run out of cash, resulting in a total loss for investors. Even established SMEs or real estate projects can encounter unforeseen problems (market crashes, regulatory changes, etc.). 2) Illiquidity: You cannot easily sell your investment (no secondary market), so you’re stuck with it regardless of performance. If the company languishes (neither growing nor failing), your money could be tied up indefinitely without returns. 3) Delays: Realizations (exits) can take longer than expected. Real estate projects might face construction or permit delays, stretching timelines. Startups might need much more time to achieve an exit, or may never exit. 4) Dilution: If the startup raises more capital later, your ownership percentage might dilute. While you usually have a pre-emption right to buy new shares, you may not always exercise it, leading to dilution of value. 5) Lack of control: As a small shareholder you have virtually no control or influence on the company’s decisions. Things like pivoting the business model or even selling the company at a price you dislike could happen without your input. 6) Valuation risk: The valuation at which you invest could be too high; if the company was overpriced, even if it does okay, you might not see a profit. 7) Platform risk: While Mamacrowd itself is stable, a risk to consider is if the platform ceased operations – however, since shares are recorded legally, even in that case your investment would still exist; you’d just lose that intermediary support. In summary, the major risks are losing money and lack of liquidity, as Mamacrowd clearly warns in its risk disclosure. There’s also no safety net (no guarantee, no insurance). Mitigation: invest in multiple deals (don’t put all your money in one), do your own research on each project, and only invest money that you can afford to lose. Mamacrowd helps mitigate risk by curating projects and providing information, but the onus is on you as the investor to understand and accept these risks before investing.