In today’s digitalization world that has changed nearly every aspect of our lives, crowdfunding is a new and rapidly growing space which is reaping maximum benefits of digital technologies. Indeed, the Internet is giving the new shape to the crowdfunding industry, providing a choice for entrepreneurs to raise funds from all over the world through many world’s best crowdfunding sites. The concept of crowdfunding has been exploding since 2012. Consequently, new crowdfunding platforms have been made available for an array of segments.
Crowdfunding models range from donations to selling equity shares, encouraging many investors to be part of crowdfunding. The availability of different models provides options for the investors to choose how they want to be associated with the venture. This is encouraging many investors to invest, and crowdfunding has become a primary source of capital for many entrepreneurs.
For the latest crowdfunding market report, global crowdfunding market size, top crowdfunding companies or best crowdfunding sites, and future trends in this market please see Technavio’s Global Crowdfunding Market Report 2018-2022, or download your FREE Global Crowdfunding Market Report Sample now!
Global Crowdfunding Market Analysis
Crowdfunding industry has grown at an impressive rate ever since it first went mainstream in 2009, raising more than $530 million. Today, the crowdfunding market is valued at more than $70 billion and is expected to reach $114 billion by 2022, thanks to new regulations allowing people to invest in projects, crowdfunding could easily top $80 billion in 2018 and surpass some traditional forms of finance. The growth rate was high in 2017 and will continue in 2018 as the concept of crowdfunding will start penetrating developing nations. The Americas will continue to be the largest market for crowdfunding, with the US being the global leader.
Top 10 Best Crowdfunding Sites in the World 2019
Kickstarter, a company which started as a venture itself has grown to become one of the world’s best crowdfunding sites and globally-renowned firms that has a presence in several major countries across the world. Indeed, it is one of the leading companies in non-conventional investment ventures, thanks to its focus and dedication towards bringing creative projects to reality. Since its launch in 2009, more than 1,50,000 projects have been successfully funded, $3.9 billion has been pledged, and 15 million people have backed a project. These projects include stage shows, music, video games, technology, films, journalism, comics, and food-related projects.
Find out Kickstarter’s market share in the global crowdfunding market 2019
Indiegogo is one of the leading crowdfunding platforms in the world which is dedicated to democratizing the way people raise and collect funds for any projects such as entrepreneurial, creative, or cause-related. The Indiegogo platform operates on a rewards-based system, meaning investors who are willing to fund a project can donate and receive a gift, instead of an equity stake in the company. As one of the world’s best crowdfunding sites, campaigns are launched from almost all the countries across the world with millions being distributed every week owing to contributions made by the Indiegogo community.
Since 2008, Indiegogo has helped bring over 800,000 creative ideas to life with more than 9 million backers, representing over 235 countries and territories.
With a community of over 50 million donors and more than $5 billion raised so far, GoFundMe has become the world’s largest social fundraising platform and one of the best crowdfunding sites that is changing the way the world raises funds. The platform offers an option for people to create their own profile for online donation and share it through built-in connections on Twitter, Facebook, and e-mail, allowing users to raise funds in a hassle-free manner without any deadlines or goals. Since it launched seven years ago, GoFundMe has been breaking its own crowdfunding records every year. In 2016, the company’s growth jumped by more than a billion and approximately twice that in 2017.
View related report sample: Global Peer-to-peer Lending Market 2016-2020
Patreon is a rapidly growing crowdfunding platform that is most popular among webcomic artists, musicians, podcasters and YouTube content creators. The platform allows artists to raise funds for their own work on a recurring basis or per each artwork. The artists set up their own page on the Patreon website to ask for funding for their projects. The patrons can pledge to donate money to an artist every month or every time they create a piece of art. The site also has an option for setting a maximum monthly amount, and the artists can also provide rewards for their patrons. In March 2015, the company acquired Subbable, a video subscription service, making it one of the fastest growing and best crowdfunding sites in the world.
Launched in the year 2010, the RocketHub is an online crowdfunding platform that powers donation-based funding for a wide range of creative projects. Based in New York City, RocketHub worked on innovating the crowdfunding model and developed a B2B marketplace for the technology space. The company operated in more than 190 different countries across the world, and through its association with the US Department of State is the only crowdfunding platform which is able to operate in emerging regions across the world.
Teespring is a growing e-commerce platform and a leading crowdfunding platform for clothing that empowers anyone to create and sell high-quality products. Indeed, the company is creating immense opportunities for entrepreneurs, organizers, community, influencers, and anyone who unites communities around specific causes or passions by unlocking commerce for everyone. Although Teespring may look like Kickstarter, there are exclusive differences between these two crowdfunding platforms. At Kickstarter, the production of the product being promoted is completely on those raising the funding. But at Teespring, all production and the shipping are led by the company itself.
View related report sample: Global Loan Servicing Software Market 2017-2021
CircleUp is a leader in equity crowdfunding platform and focuses on angel investments in companies that offer consumer products. The company which started with crowdfunding in 2012 now connects small companies that sell consumer products to capital in three ways. It offers a line of credit at rates of 14 % to 25 %. CircleUp also announced that it has $125 million venture fund to invest in companies directly. Further, more than 255 startups have received over $390 million in equity investments through the site. CircleUp is backed by Canaan Partners, Union Square Ventures, GV, Collaborative Fund, QED Advisors, and former leaders of Capital One and Goldman Sachs.
Since its inception in 2004, Gust, and its predecessors Angelsoft has been one of the largest private investment platforms in the world. It is a SaaS-based platform that allows entrepreneurs to connect with investors, angel groups, government agencies, accelerators, and crowdfunding platforms. Gust powers more than 2,000 investment entities in 157 countries and over 500,000 early-stage projects in 191 countries have already used the Gust platform to collaborate with more than 75,000 accredited investors.
View related report sample: Global Alternative Finance Market 2018-2022
Based in New York City, iFunding is one of the world’s leading real estate crowdfunding platforms that make real estate investments easier, more accessible and rewarding for both investors and developers. The company’s real estate investment platform provides opportunities for individuals to help them invest in institutional-quality real estate arrangements, through crowdfunding, allowing investors to make direct investments in pre-vetted real estate assets directly on the website. iFunding offers investment opportunities for investors in debt and equity deals at minimums as low as $5,000.
Crowdfunder is one of the leading equity crowdfunding platforms and best crowdfunding sites in the world which aims to significantly connect entrepreneurs with potential investors. The platform has till now raised more than £50 million for projects across the UK. Crowdfunder has also collaborated with the Congress, the White House, and the SEC for crowdfunding legislation and regulations. The site is predominantly geared towards activities that promise social value such as community projects benefitting society and the environment.
Download related report sample for FREE: Global FinTech Investment Market 2016-2020
Future Trends of the Global Crowdfunding Market
Crowdfunding is fast embracing the social media platform as it is seen as a platform to acquire investors and potential customers. With social media penetration rapidly increasing, entrepreneurs are not using banner or display ads but are also using sponsored content and campaign pages to attract customers. These platforms are rapidly becoming destinations for the engaging target audience in an effective manner. Furthermore, social media is considered to be the ideal platform to know the effectiveness of a crowdfunding campaign. These posts on social media platforms, such as Facebook and Twitter, can be used to target the audience and generate investments.
Most Frequent Asked Questions in the Global Crowdfunding Market:
- What is the current global crowdfunding market size?
- What are the major opportunities and challenges in the global crowdfunding market?
- Who are the best crowdfunding sites & crowdfunding companies by market share?
- What are the global crowdfunding market trends in the near future?
All the detailed answers can be seen in this following report:
Share this blog