Crowdfunding Market: Global Industry Analysis and Forecast (2023-2029)

Global Crowdfunding Market expected to hit USD 4.42 Bn by 2029 from USD 1.64 Bn in 2022 at a CAGR of 15.2% during the forecast period
Crowdfunding Market Overview
Crowdfunding is used to fulfill the required financial need of startups or businesses mostly. But crowdfunding is being used to raise funds for social causes by Non-governmental organizations (NGOs) or by individuals and by artists for their art such as filmmaking, music and others. Raising money for causes is the most effective and efficient on crowdfunding platforms and this is expected to increase the global Crowdfunding Market Penetration. The report includes major Crowdfunding Key Players with their Crowdfunding Market Share and Crowdfunding Market Competitive Landscape.To know about the Research Methodology :- Request Free Sample Report
Crowdfunding Market Dynamics:
Market Drivers

Liberal Platform of Funding Accessible to Everyone Expected to Boost the Crowdfunding Market

The crowdfunding platform does not require any credit score to ask for funding and there’s no need to compete with anyone to get funding from capitalists, which are interested in the product or idea. The major advantage of crowdfunding is that businesses are expected to make connections directly with the general public and raise funds in exchange for relative gifts and voila. This feature of crowdfunding is expected to drive the Crowdfunding Market.

A Sustainable Alternative to Traditional Ways of Funding and Lowers the Risk for Entrepreneurs

Crowdfunding lowers the importance of banks and other financial institutions since depending on the only financial institution is expected to limit the fundraising due to a lot of paperwork and bureaucratic regulations creating complications. This is expected to increase the growth of the Crowdfunding Market as an alternative to traditional funding such as from banks and other financial institutions. Here, the rules and regulations of the banks themselves became Crowdfunding Industry Growth Drivers. Apart from that, Crowdfunding is a convenient platform and carries less financial risk, hence crowdfunding platforms are gaining popularity in the world.

For relatively small sums of money crowdfunding offers access to a bigger network of individuals through an online platform. Where, in most cases, the cost of raising funds is lower as compared to the conventional mode. These benefits of crowdfunding drive entrepreneurs to ask for money on crowdfunding platforms and respectively increases the Crowdfunding Market Growth.

Role of Technology Fuelling the Growth of the Crowdfunding Industry

Current scenarios of crowdfunding in the world are expected to create a trillion-dollar Crowdfunding Market. The major drivers of the Crowdfunding Industry are artificial intelligence (AI), blockchain technology, better internet access and the proliferation of social media platforms. As technology allows for better access, efficiency, and transparency, platforms will benefit from strong network effects. The value of the platforms and the industry will be enhanced as the number of campaigns and contributors grows. More campaigns hosted on the platform are expected to attract more supporters for the business. Crowdfunding mostly depends on marketing the product and presenting a business idea in front of people through platforms.

Some Key Benefits of Crowdfunding are as follows:

1. Crowdfunding is more efficient than traditional funding crowdfunding campaign on Fundable or another platform is far more efficient and effective in reaching out to the right people.

2. A strong, highly visible crowdfunding campaign can provide validation and social proof that’s vital in charting an organization’s path forward.

3. It helps in gaining early adopters and loyal advocates and an opportunity for crowdsourced brainstorming to refine the idea.
Crowdfunding Market Trends
Social Media Increases the Reach of Crowdfunding Campaigns: There is nearly 59.6 percent of Internet users in the world and most of them use social media. These numbers significantly highlight the scope of online crowdfunding by leveraging the power of social media to help the needy. Crowdfunding Market is expected to boost from this high number of social media users. Crowdfunding platforms are making the most of the funding through social media by reaching out to a larger audience across the world. The campaigners are often advised to share their campaigns on social media to ensure reaching out to a wider audience.

Funding through Digital Wallets and Online UPI is expected to increase the Crowdfunding Market Penetration: The use of advanced technology simplified the process of donation to the online crowdfunding campaign. It is beneficial not only for businesses but for investors, which helps them to expand their financial opportunities and diversify their portfolios. Online payment methods such as UPI, net banking and credit or debit cards are making the transaction process easier and also breaking the geographical barriers in the payment process.

Use of the Latest Technologies AI and ML Expected to Propel the Crowdfunding Industry Growth: These new technologies have the potential to revolutionize the way entrepreneurs and investors interact, making the payment process more efficient, secure and personalized. AI is driving the growth of the crowdfunding sector by improving the chances of campaign success through algorithms and a vast amount of data. Another way AI is transforming the crowdfunding sector is by increasing transparency and reducing the risk of fraud and the growing inclusion of technology in every sector is expected to drive the Crowdfunding Market Penetration.

Market Restraints

The report collects data regarding Crowdfunding Market Size and Shares through primary and secondary research methods. The data was later analyzed by SWOT analysis and PORTER’s five force model, which includes growth drivers, opportunities, regional insights and restraints in the Crowdfunding Industry. The lack of awareness about crowdfunding among the general public is expected to limit the growth of the Crowdfunding Market Penetration. Also, less marketing and less use of technology are expected to impede the Crowdfunding Industry during the forecast period.
Crowdfunding Market Segment Analysis
Based on Type, A debt-based crowdfunding segment held more than 60 percent of the revenue share in the global Crowdfunding Market Size. Debt-based crowdfunding is gaining popularity across the world since it offers more favorable terms such as lower interest rates, quicker approval times and a very simple Type process than other types of debt financing. These terms are making debt-based crowdfunding popular among small, medium and large businesses. The most well-known debt-crowdfunding platforms are SMBX, Mainvest, Honeycomb Credit and Lending Club. These platforms have increased the Crowdfunding Market Penetration globally in major geographic regions such as North America, South America, Europe, Asia Pacific and the Middle East and Africa. The debt-crowdfunding is again divided into four types, which are peer-to-peer (P2P) lending, Microlending, Mini-bonds and Invoice financing. Startups and businesses chose a type based on their need through platforms offering Crowdfunding Services. But not all the crowd funders of crowdfunding offer low-interest loans, they require predictable cash flow to ensure the business can repay the loan and some people see debt crowdfunding as a last option for a falling business. These factors are expected to impede the growth of the Crowdfunding Market Segmentation.Based on Application, The Technology segment is expected to hold the largest share in the Crowdfunding Industry. The majority of the startups are seeking crowdfunding by selling their business idea with the hope that it is expected to give financial returns to the investors. For instance, Google, Apple, Infosys, Microsoft and Facebook are all once startups and now they are big tech giants. Also, the trend of startups and every industry is adopting the newest and latest technologies for better benefits to its Investment Sizes. According to the report Crowdfunding Industry is expected to have benefited from the integration of technologies. So, the growing demand for technologies in every sector is expected to increase the technology segment Crowdfunding Market Share globally.
Crowdfunding Market Regional Insights
North America held the largest share of 28.3 percent in the market in 2022. In the region, the United States is a hub for nearly 72,560 startups and small businesses account for 99.9 percent of U.S. businesses, according to the MMR report. Around 38 percent of American startups fail because they cannot secure the necessary funds. These reasons are expected to drive the region’s Crowdfunding Market during the forecast period. The most relevant causes for crowdfunding in North America are to raise money not only for a creative project but for personal or social causes also such as covering funeral costs or supporting a particular charity. The Crowdfunding Market Penetration is respectively high for business startups than other reasons and it helps them to run their business and research and development.

Europe’s Crowdfunding Market is seeing significant growth due to technological developments and an increasing number of proptech companies are opening opportunities for the crowdfunding Industry in real estate, banking and other industries. The region is really conservative regarding such types of initiatives but the situation is changing due to the increased adoption of IT technologies and the increased number of crowdfunding platforms in Europe such as Seedrs, Crowdcube, GoFundMe and others. These are some of the major Crowdfunding Market Companies in the region that are expected to increase the Global Crowdfunding Key Competitors.

Asia Pacific is expected to grow at the highest CAGR of 8.1 percent throughout the forecast period in Crowdfunding industry. Around two-thirds of the global middle-class population lies in the Asia Pacific. The countries in the region such as India and South Korea have large numbers of startups. Bangalore, a city in India is known as the capital of startups. The growth is due to big tech giants have started their offices in the country. The governments of Singapore and Malaysia announced the establishment of regulatory frameworks for Equity Crowdfunding, which is expected to drive the region’s Crowdfunding Market Size. Also, the increased digitization and government favorable regulations are expected to create a lucrative opportunity for Crowdfunding Key Players to increase their Crowdfunding Market Share.
Crowdfunding Market Competitive Landscape
The report provides mergers and acquisitions between the Crowdfunding Market Companies and the use of Crowdfunding platforms for fundraising by other sectors, which is expected to boost the global Crowdfunding Market Size. Recently, on January 24, 2019, The Heat and Warmth Fund (THAW) used the Crowdrise platform to raise funds for Michigan’s federal employees to help keep their gas, electricity and water on during the “payless paydays” of the partial government shutdown. And capital markets union adopted new rules for crowdfunding platforms on July 20, 2020. The new framework is part of the capital markets union's project which aims at providing easier access to new financing sources. It is expected to remove barriers for crowdfunding platforms to provide their services cross-border by harmonizing the minimum requirements when operating in their home market and other EU countries. It is anticipated to increase legal certainty through common investor protection rules. This is expected to increase the Crowdfunding Market Penetration throughout the forecast period.
Crowdfunding Market Scope: Inquire before buying



Crowdfunding Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2017 to 2022
Market Size in 2022:
US $ 1.64 Bn.


Forecast Period 2023 to 2029 CAGR:
15.2%
Market Size in 2029:
US $ 4.42 Bn.


 Segments Covered:
by Type
1.Reward-based Crowdfunding
2.Equity-based Crowdfunding
3.Debt-based Crowdfunding
4.Donation-based Crowdfunding
5.Others


by Investment Size
1.Small and Medium Investment
2.Large Investment


by Application
1.Food and Beverage
2.Technology
3.Media and Entertainment
4.Real Estate
5.Healthcare
6.Others



Crowdfunding Market, by Region:
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan, and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Crowdfunding Key Players include:
1. StartSomeGood
2.Kickstarter
3.PBC
4.GoFundMe
5.Fundly
6.Seedrs Limited
7.ConnectionPoint Systems Inc. (CPSI) (FundRazr)
8.Fundable
9.Wefunder Inc.
10.Indiegogo, Inc.
11.Crowdcube Capital Ltd
12.SeedInvest Technology, LLC
13.Double the Donation
14.LegalVision Pvt Ltd
15.Realcrowd
16.Patreon
17.Crowdrise
18.Kiva
19.Crowdfunder
20.CauseVox
21.Plumfund

Frequently Asked Questions:

1] What is the growth rate of the Crowdfunding Market?
Ans. The Crowdfunding Market is growing at a CAGR of 15.2% during the forecast period.

2] Which region is expected to dominate the Crowdfunding Market?
Ans. North America is expected to dominate the Crowdfunding Market during the forecast period from 2023 to 2029.

3] What is the expected Crowdfunding Market size by 2029?
Ans. The size of the Crowdfunding Market by 2029 is expected to reach USD 4.42 Bn.

4] Who are the top players in the Crowdfunding Market?
Ans. The major key players in the Crowdfunding Market are StartSomeGood, Kickstarter, PBC, GoFundMe and Fundly

5] Which factors contributed to the growth of the Crowdfunding Market in 2022?
Ans. The Crowdfunding Market is expected to grow due to the rising trend of startups and small businesses and the easy process of funding.