What Has Driven the Growth of the Crowdfunding Market in Recent Years?
The crowdfunding market has seen considerable growth due to a variety of factors.
• The size of the crowdfunding market has experienced significant expansion in the past few years. The market, which is anticipated to be worth $17.72 billion in 2024, is expected to escalate to $20.46 billion in 2025 with a compound annual growth rate (CAGR) of 15.5%.
The surge during the historic period is largely due to the financial requirements of start-ups and smaller businesses, globalization of capital, backing for innovative initiatives, crowdfunding endeavors for social purposes, as well as regulatory structures and environments.
What are the Market Size and Expected Growth Rates for the Crowdfunding Market?
The crowdfunding market is expected to maintain its strong growth trajectory in upcoming years.
• It is anticipated that the crowdfunding market will undergo accelerated expansion in the coming years. A compound annual growth rate (CAGR) of 17.3% is expected to propel it to $38.71 billion by 2029. The projected growth during this period can be accounted for by factors such as the evolution of various crowdfunding models, the advancement of real estate crowdfunding, the widespread use by large-scale businesses, the integration and progression of technology and platforms, as well as the global spread of the crowdfunding ecosystem. Significant trends in the forecast period encompass cross-border crowdfunding campaigns, the incorporation of non-fungible tokens (NFTs) into crowdfunding, the emergence of community-driven crowdfunding, the application of smart contracts for conducting crowdfunding, and the surge in crowdfunding for real estate projects.
What Are The Primary Growth Drivers In The Crowdfunding Market?
The anticipated growth of the crowdfunding market is likely to be propelled by the expanding usage of social media platforms. These platforms provide a service to the larger public, enabling them to share communications, news, and other content in various formats such as messages, videos, photographs, or sound files. They also serve as a valuable tool for the promotion of crowdfunding endeavors, and for raising capital via an online medium. An increase in social media use thus correlates to an increased demand for crowdfunding. As an example, a UK-based social media creativity and analytics firm, We Are Social Ltd, reported in January 2024 that the number of social media users had increased by 5.6% in the previous year, with an addition of 266 million fresh users in 2023. Hence, the expanding usage of social media platforms is likely to augment the growth of the crowdfunding market.
What Are The Key Segments Within The Global Crowdfunding Market?
The crowdfunding market covered in this report is segmented –
1)By Type: Equity-Based Crowdfunding, Debt-Based Crowdfunding, Others Types
2)By Platform Type: Open Service Platform, Managed Service Platform
3)By Application: Food And Beverage, Technology, Media, Real Estate, Healthcare, Others Applications
Subsegments:
1) By Equity-Based Crowdfunding: Startup Equity Crowdfunding, Real Estate Equity Crowdfunding, Venture Equity Crowdfunding
2) By Debt-Based Crowdfunding: Peer-To-Peer (P2P) Lending, Invoice Financing, Real Estate Debt Crowdfunding
3) By Other Types: Reward-Based Crowdfunding, Donation-Based Crowdfunding, Hybrid Crowdfunding
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How Are New Trends Impacting The Size Of The Crowdfunding Market?
In the crowdfunding market, leading businesses are concentrating their efforts on producing pioneering products such as crowdfunding initiatives to support their fight against battery fires. A prime example of this is Soteria, a domestic company focusing on lithium-ion battery safety, which encompasses a novel technology to combat battery fires and a consortium to advocate for optimum lithium-ion battery safety practices. Their crowdfunding initiative was launched on StartEngine in August 2023, with the aim of gathering resources for the development and launch of a series of intrinsically safe batteries for e-bikes and additional devices. Soteria has put together a collaboration comprising over 125 leading companies in the field, including NASA, Mercedes, Lenovo, and DuPont, to expedite widespread adoption of their technologies. The initiative's intention is to generate funding from both recognized and unrecognized investors to aid the development of Soteria's patented technology, designed to prevent explosions in electric bikes, electric vehicles, and other devices by stopping energy flow during a short circuit.
Who Are the Key Players in the Crowdfunding Market?
Major companies operating in the crowdfunding market include:
• LendingClub Corporation
• GoGetFunding Inc.
• Thunder Funding
• GoFundMe Inc.
• Indiegogo Inc.
• Public Good Inc.
• StartEngine Inc.
• AngelList LLC
• Wefunder Inc.
• Crowdfunder
• Kiva
• Fundable
• Crowdcube Limited
• Kickstarter PBC
• Ulule
• SeedInvest Technology LLC
• Owners Circle
• Realcrowd Inc.
• Pozible Pty Ltd
• CircleUp
• Mightycause
• Fundly
• Patreon Inc.
• DuckDAO
• Funderbeam Inc.
• MintMe
• Gronns Protocol
• Prosper Funding LLC
• RocketHub
• Fundrise LLC
• RealtyMogul LLC
What are the Regional Insights into the Crowdfunding Market?
North America was the largest region in the crowdfunding market in 2024. Asia-pacific is expected to be the fastest-growing region in the global crowdfunding market during the forecast period. The regions covered in the crowdfunding market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
