Global Crowdfunding Industry Overview
With a focus on small and medium-sized enterprises, crowdfunding is a recent development that attempts to pool money from non-financial sources like venture capitalists, peer-to-peer lenders, credit finance and investment firms, and others. In addition to the incorporation of cutting-edge technologies like artificial intelligence and machine learning, the crowdfunding market is expanding due to the quick development of technological breakthroughs and advances in crowdfunding platforms. Additionally, new businesses are finding it easier to raise money from investors because to the growing number of crowdfunding service providers globally. Additionally, crowdfunding activities are becoming more and more popular on a number of social media sites, including Facebook, Instagram, LinkedIn, and Twitter, which make it easier to gather investor donations. The increasing government initiatives to assist with crowdfunding platform product launches are anticipated to further stimulate the market’s growth.For example, CircleUp Network Inc. announced on June 2, 2023, that it had been purchased by Brightflow AI, a financial data and intelligence platform that helps small businesses take charge of their cash flow and make fact-based decisions.
Driving Forces of Crowdfunding Market
Market Expansion Supported by Social Media Platform Utilization to Increase Market Growth
Increasing social media platform crowdfunding activity is essential for boosting interest in future crowdfunding initiatives. Technology advancements and social media have given this sector the much-needed boost it needs. Social media sites like Instagram, Facebook, LinkedIn, Reddit, and Twitter are becoming more and more popular for fundraising activities that solicit donations from investors. Additionally, growing smartphone and internet usage, along with the growing popularity of the P2P (peer-to-peer) crowdfunding business model, could provide the market a bright future. For example,53% of email shares, 12% of Facebook shares, and 3% of Twitter shares result in donations, according to startups.com.
TipSnaps, a Black-owned social media company that assists 450k members in making money off of their material, announced a Republic fundraising drive in March 2022. Among the well-known businesses that have raised capital on Republic are GoPuff, SpaceX, and Robinhood. People can become early investors in the startup thanks to this affiliation.
Crowdfunding platforms are maximizing financing through social media by expanding their global audience. It is frequently advised that activists share their campaigns on social media in order to reach as many people as possible. Consequently, it is expected that active social media efforts will accelerate market expansion.
Increased Global Connectivity
Global connectivity has made it possible for campaign designers to reach a global audience, which has greatly expanded the crowdfunding business. Digital platforms such as Kickstarter, Indiegogo, and GoFundMe let people and companies to raise money from backers worldwide, overcoming geographical restrictions. This worldwide reach increases the chances of a successful campaign by giving access to a larger pool of possible supporters. Additionally, by enabling campaigns to become viral and attract interest from communities throughout the world, social media sites like Facebook, Instagram, and Twitter enhance crowdfunding initiatives. Real-time sharing, promotion, and campaign engagement have contributed to the development of a global crowdfunding ecosystem that enables anybody, anywhere, to contribute to the funding of ideas or causes they support.Changing Consumer and Investor Behavior
One of the main factors driving the expansion of crowdfunding is changing investor and customer behavior. Beyond conventional stocks and bonds, investors - particularly millennials and Gen Z - are increasingly looking for alternative investing alternatives. Equity crowdfunding, which allows investors to purchase ownership holdings in startups or small enterprises, attracts a lot of people. A growing desire for more hands-on involvement in the companies they support is reflected in this change. In a similar vein, customers are more inclined to participate in the development process and support crowdfunding initiatives for goods they believe in. Through early access, customized rewards, and control over product features, crowdfunding promotes a sense of community and ownership. Crowdfunding has become an effective instrument for investment and customer interaction due to these changing preferences.Crowdfunding Market Overview by Regions
Globally, the crowdfunding sector is expanding, with North America leading the way in rewards-based and investment crowdfunding. While Asia-Pacific is experiencing rapid growth, particularly in the tech and startup industries, Europe is the next region with the most support for equity crowdfunding. An overview by region is as follows:United States Crowdfunding Market
With websites like Kickstarter, Indiegogo, and GoFundMe at the forefront, the US has been a pioneer in the crowdfunding space. Due to its thriving startup ecosystem, spirit of entrepreneurship, and creative ideas, it continues to be the biggest crowdfunding market. The crowdfunding methods available in the U.S. market are varied and include platforms that are rewards-based, donation-based, equity-based, and lending-based. The growth of equity crowdfunding was made possible by the JOBS Act of 2012, which gave regular investors the ability to invest in early-stage companies in return for shares. Strong investment interest, sophisticated payment systems, and extensive internet access are additional advantages for the nation. Furthermore, U.S. crowdfunding initiatives frequently target social issues, entertainment, technology, and healthcare, drawing support from both domestic and foreign investors. The market is still growing quickly thanks to rising involvement and trust.China Crowdfunding Market
The crowdfunding sector in China has expanded quickly, ranking among the biggest globally. The market is driven by a tech-savvy populace, a strong innovation culture, and an entrepreneurial mentality. Platforms like JD+, Demohour, and Yooli have led the push in the rewards-based crowdfunding industry, while Lu, an equity crowdfunding platform, caters to investors wanting stakes in firms. The Chinese government has also been helpful, establishing laws that encourage innovation and crowdsourcing. The market is very digital, and its expansion is mostly due to e-commerce integration and mobile payments. Chinese crowdfunding initiatives frequently highlight consumer goods, technology, and social reasons. China's crowdfunding market continues to be a major participant despite the changing legal landscape, especially in the consumer products and technology sectors.Germany Crowdfunding Market
With a focus on both rewards-based and equity crowdfunding, Germany boasts one of the most advanced crowdfunding markets in Europe. Prominent platforms such as Seedmatch, Companisto, and Startnext have facilitated the expansion of creative ventures and inventive enterprises. Clear regulatory frameworks that promote investor protection and transparency underpin Germany's well-regulated crowdfunding environment. While rewards-based platforms continue to support creative initiatives like art, software, and music, equity crowdfunding in particular has gained traction and made it possible for investors to purchase shares in up-and-coming businesses. The nation is a major player in the European crowdfunding scene because of its strong investing culture, high internet penetration, and thriving entrepreneurial ecosystem. Eco-friendly campaigns have increased as a result of Germany's emphasis on sustainability and green technology.Private investment options are made available to both experienced and inexperienced investors in Germany through several crowdsourcing platforms. German crowdsourcing websites follow excellent principles and are among the most regulated. German crowdfunding platforms allow consumers to build wealth and offer options for real estate and SME investments.
According to thecrowdspace.com, there are 112 platforms in Germany that focus on P2P lending, equity, debt, donations, prizes, and mini-bonds. Through them, accredited and retail investors can make investments in a variety of business sectors, such as startups, small and medium-sized businesses (SMEs), health and science, social causes, education, farming, sports, maritime, renewable energy, logistics, real estate, and personal loans. There are also twenty-five equity crowdsourcing websites in Germany. Real estate, green energy, startups, art, SME, health & science, social causes, education, or farming are among the many investment options they offer to both accredited and retail investors. Depending on the industry or particular platform goals, many platforms have different minimum investment amounts.
United Arab Emirates Crowdfunding Market
Due to a robust digital infrastructure and a vibrant entrepreneurial climate, the crowdfunding sector in the United Arab Emirates (UAE) has grown quickly. Key players include platforms like Zoomaal, BeHive, and Eureka, which provide choices for equity and rewards-based crowdfunding. With regulatory frameworks like the Financial Services Regulatory Authority (FSRA) supervising equity crowdfunding, the UAE government has been helpful in facilitating small enterprises' and startups' access to finance. Fintech, renewable energy, and social enterprises are among the many crowdfunding projects that have grown in number as a result of the nation's rising interest in innovation, technology, and social concerns. Additionally, the UAE has become a major player in regional crowdfunding due to its advantageous location as a center for investment and business in the Middle East.Type- Industry is divided into 5 viewpoints:
1. Reward-based2. Equity-Based
3. Debt-Based
4. Donation-Based
5. Others
Application- Industry is divided into 6 viewpoints:
1. Food & Beverage2. Technology
3. Media
4. Real Estate
5. Healthcare
6. Others
Countries- Industry is divided into 25 viewpoints:
North America
- United States
- Canada
Europe
- France
- Germany
- Italy
- Spain
- United Kingdom
- Belgium
- Netherlands
- Turkey
Asia Pacific
- China
- Japan
- India
- South Korea
- Thailand
- Malaysia
- Indonesia
- Australia
- New Zealand
Latin America
- Brazil
- Mexico
- Argentina
Middle East & Africa
- Saudi Arabia
- United Arab Emirates
- South Africa
All companies have been covered with 4 Viewpoints
1. Overview2. Key Persons
3. Recent Development & Strategies
4. Financial Insights
Company Analysis
1. Alibaba Group Holding Ltd2. Kickstarter, PBC
3. Indiegogo, Inc.
4. GoFundMe
5. Fundable
6. Crowdcube
7. SeedInvest Technology, LLC
8. Fundly
Table of Contents
Companies Mentioned
- Alibaba Group Holding Ltd
- Kickstarter, PBC
- Indiegogo, Inc.
- GoFundMe
- Fundable
- Crowdcube
- SeedInvest Technology, LLC
- Fundly
Methodology
In this report, for analyzing the future trends for the studied market during the forecast period, the publisher has incorporated rigorous statistical and econometric methods, further scrutinized by secondary, primary sources and by in-house experts, supported through their extensive data intelligence repository. The market is studied holistically from both demand and supply-side perspectives. This is carried out to analyze both end-user and producer behavior patterns, in the review period, which affects price, demand and consumption trends. As the study demands to analyze the long-term nature of the market, the identification of factors influencing the market is based on the fundamentality of the study market.
Through secondary and primary researches, which largely include interviews with industry participants, reliable statistics, and regional intelligence, are identified and are transformed to quantitative data through data extraction, and further applied for inferential purposes. The publisher's in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. These analytical tools and models sanitize the data & statistics and enhance the accuracy of their recommendations and advice.
Primary Research
The primary purpose of this phase is to extract qualitative information regarding the market from the key industry leaders. The primary research efforts include reaching out to participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions. The publisher also established professional corporate relations with various companies that allow us greater flexibility for reaching out to industry participants and commentators for interviews and discussions, fulfilling the following functions:
- Validates and improves the data quality and strengthens research proceeds
- Further develop the analyst team’s market understanding and expertise
- Supplies authentic information about market size, share, growth, and forecast
The researcher's primary research interview and discussion panels are typically composed of the most experienced industry members. These participants include, however, are not limited to:
- Chief executives and VPs of leading corporations specific to the industry
- Product and sales managers or country heads; channel partners and top level distributors; banking, investment, and valuation experts
- Key opinion leaders (KOLs)
Secondary Research
The publisher refers to a broad array of industry sources for their secondary research, which typically includes, however, is not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Patent and regulatory databases for understanding of technical & legal developments
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic new articles, webcasts, and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecasts
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Table Information
Report Attribute | Details |
---|---|
No. of Pages | 100 |
Published | January 2025 |
Forecast Period | 2024 - 2033 |
Estimated Market Value ( USD | $ 1.45 Billion |
Forecasted Market Value ( USD | $ 5.43 Billion |
Compound Annual Growth Rate | 15.8% |
Regions Covered | Global |
No. of Companies Mentioned | 8 |