Crowdfunding Market

Global Crowdfunding Market Size & Growth(2022 - 2027)

The global crowdfunding market was calculated to be at $17.2 billion in 2020 and is determined to reach $34.6 billion by 2026, garnering a compound annual growth rate of 17% between 2021 and 2026.

Crowdfunding is the use of the amount of money that a large group of people uses the Internet to finance a business. Social media and crowdfunding sites have become typical these days to bring in investors and entrepreneurs at one place to expand the investor pool beyond the traditional circle. The study of global crowdfunding took into account the types of crowdfunding proposed for the different vertical sectors of end users, on a global scale.

Crowdfunding campaigns as crowdsourcing channels to stimulate market growth. In the earlier product launch processes and other marketing traits, there was a minimal interaction with customers. However, this scenario has been completely altered by crowdfunding campaigns, as they enable entrepreneurs to meet their customers or the ability assess the product success before launch.

In the crowdfunding area, over the years, the use of social networks has increased considerably for promotion. Social media platforms function as free cost promotion resources and reach the public worldwide. This has allowed companies to pre-sell and market products with greater convenience. Therefore, active crowdfunding campaigns on social media should further stimulate the growth of the crowdfunding market in the next five years.

UK-based startup BuffaloGrid, which developed a mobile phone charging hub for entrepreneurs in 2011, said it had raised around $ 683,000 through crowdfunding crowdcube. The engagement campaign helped the company bring the next iteration to its workplace and begin mass production. BaffaloGrid then partnered with Microsoft's Affordable Access Initiative and launched live tests in India. Until January 2020, the company closed a funding cycle of more than $ 4.3 million led by an early-stage venture capital company and a grant from the European Union's Horizon 2020 program.

Impact of Covid-19 on the Global Crowdfunding Market

In the midst of the recent COVID-19 epidemic, healthcare professionals work around the world. For these activities, countries actively use crowdfunding platforms to raise funds for themselves against the spread and impact of the pandemic. For example, in April 2020, the Malaysian Digital Economy Corporation (MDEC) announced a partnership with the crowdfunding platform for crowdfunding donations to support the front lines with the MKN20 protocol to distribute items to hospitals across the country.

Recent developments:

• May 2020: BuildHer, a crowdfunding platform based in the United Kingdom, introduce its service. BuildHer, founded in 2018, says it gives disadvantaged young women in Kenya reputable construction skills, leading to greater financial prosperity, changing men's attitudes, and promoting gender equality in the construction sector.

Growth and Market trends:

Reward-based crowdfunding is expected to grow significantly

• Reward-based crowdfunding is where the business (usually a new company) raises seed capital and seed capital through an online platform and offers investors a gift or "benefit" for their financial contribution. It is considered pre-sale, in the Which individuals or projects or companies raise funds from the bankers, who then receive a non-monetary reward. This allows companies to join an existing network and request what can be used later. This type of crowdfunding is generally suitable for new companies or for a specific project.
• Australian-based start-up: Okra Solar, which tested its "intelligent plug-and-play controller" to facilitate sharing of neighbors' power. The company said it had launched an award-based crowdfunding campaign to supplement the small-scale pilot to test the technology. With this campaign, the company raised more than $ 45,000 in seed capital to build a prototype. The campaign later won numerous grants from the UK Department for International Development, the Swedish International Development Agency, and obtained pre-seed funding through the Schneider Electric Energy Access Companies Fund.
• According to the Global Entrepreneurship Monitor, start-ups in the United States represent a significant share of 17.4% of the country's total population. This indicates the great opportunity for reward-based crowdfunding in the region. In addition, with the huge crowdfunding market in North America, this opportunity is growing.

Market Drivers and Restraints:

The use of social media as a source of free promotion is one of the key factors in the growth of the global crowdfunding market. It offers the possibility of measuring public interest, pre-selling a product and acting as a promotional tool. Therefore, an active crowdfunding campaign can go beyond simply raising the necessary funds. Social media campaigns are inexpensive, can access multiple channels quickly, and track referral traffic to websites. With social media, companies can promote an idea at no cost, which should spur growth in the crowdfunding market in the years to come.

CROWDFUNDING MARKET REPORT COVERAGE:

Crowdfunding Market segmentation:

This global report is segmented and sub-segmented into the following categories:

Global Crowdfunding Market - By product:

• Awards-based Crowdfunding
• Crowdfunding Auctions
• Others

Global Crowdfunding Market - By End-User:

• Cultural industries
• Technology
• Product
• Healthcare
• Others

Regional Analysis:
European crowdfunding market is expected to increase rapidly due to an increasing number of organizing regulations across various European countries for the crowdfunding model. European Union countries are also planning to lay down rules to allow crowdfunding platforms in the region to operate in other EU regions, according to reports.

In addition, Turkey is one of the European countries experiencing significant growth in the crowdfunding market with the presence of stable employment opportunities. According to the Global Entrepreneurship Monitor 2019 report, it is one of the key factors of the country's economic growth, improving the conditions for entrepreneurship by 10%, generating more than 331 billion USD for the economy.

Key market players:

Major Global Companies: Kickstarter, AngelList, Indiegogo, Fundable, Crowdcube, GoFundMe, Crowdfunder, GoGetFunding, CircleUp, Patreon, Campfire, Crowdo, Milaap, RocketHub, FundRazr, Crowdfunder UK, Modian, Companisto, DonorsChoose, CrowdHousababa Suning and others.