Crowdfunding Market Size (2024 - 2029)

The crowdfunding market is experiencing significant growth, driven by its role as a vital financing alternative for entrepreneurs and startups facing challenges with traditional funding methods. This market expansion is facilitated by crowdfunding platforms acting as intermediaries, leveraging various marketing techniques to engage potential donors. The increasing difficulty in mobilizing traditional finance, exacerbated by global economic challenges, has further underscored the importance of crowdfunding. The COVID-19 pandemic has accelerated this trend, with the market continuing to evolve in the post-pandemic landscape.

Market Size of Crowdfunding Industry

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Crowdfunding Market Summary
Study Period 2021 - 2029
Market Size (2024) USD 1.5 Billion
Market Size (2029) USD 3.11 Billion
CAGR (2024 - 2029) 15.70 %
Fastest Growing Market Europe
Largest Market North America

Major Players

Crowdfunding Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Crowdfunding Market Analysis

The Crowdfunding Market size is estimated at USD 1.5 billion in 2024, and is expected to reach USD 3.11 billion by 2029, growing at a CAGR of 15.70% during the forecast period (2024-2029).

  • Crowdfunding entails soliciting many small amounts of money from an undefined group known as the crowd. Crowdfunding platforms could be intermediaries between donors and beneficiaries. This intermediary could exploit a plethora of marketing techniques to influence the behavior of the potential donor. Therefore it is essential to look for the influencing factors that are being used on crowdfunding platforms such as social media platforms for raising funds.
  • In recent years, crowdfunding has been acclaimed as an untapped and vast new opportunity for entrepreneurs and startups that face challenges in obtaining funding from traditional methods. There is a dedicated crowdfunding platform for raising funds to support the startup ecosystem. For instance, in August this year, Dutch investment crowdfunding company, Symbid, was bought by SeedBlink, a co-investment platform for software firms situated in Bucharest. By expanding the venture partners' operations in Western Europe, the acquisition will expand SeedBlink's reach as it prepares to consolidate and develop the infrastructure for equity investment in European digital startups at all stages.
  • According to the Arora Project, a Republic-owned portal that curates crowdfunding initiatives and tracks statistics, more than USD 215 million was invested in startups on equity crowdfunding platforms in the current year until the end of May, up from about USD 200 million in the same period last year. Last year, crowdfunding programs raised a total of USD 502 million.
  • Later this year, entrepreneurs, issuers, and investors from around the world will gather in person for the second annual Equity Crowdfunding Week Conference, organized by StartupStarter, an on-demand business education platform that began in 2020. Equity Crowdfunding Week is a three-day immersive event that showcases the most creative firms raising private financing in the United States, Canada, and beyond. With the inclusion of black on the block (BOTB), this fully immersive experience will now focus on offering access and opportunities to the BOTB audience wanting to make a mark in the world of entrepreneurs and equity crowdfunding.
  • Using campaigns as crowdfunding platforms is crucial in expanding the market share. The increased prevalence of chronic illnesses among the general population is one of the primary causes encouraging the expansion of crowdfunding. Furthermore, various players across the globe started investing in startups and growth companies.
  • In December last year, Mind Stone, a London-based edtech firm, received USD 1.7 million in an exciting crowdfunding campaign, exceeding its funding goal and becoming one of the most extensive edtech financing campaigns on the Seedrs platform. Further, in May last year, Zaiser Motors, a technological pioneer in developing the Electrocycle, launched an official Wefunder campaign to support developing and manufacturing of its electric motorbike.
  • Companies can now connect with potential investors across all Europe member states for the first time. To entice investors, they can employ transferrable securities, loans, or financial products that resemble shares of limited liability corporations to generate up to USD 5 million each year through crowdsourcing.
  • The global financial and economic problems have hurt many nations, making it extremely difficult for governments to address the urgent needs of local populations. Traditional sources of finance are challenging to mobilize in this crisis scenario as lack of liquidity impacts all agents, including the government, businesses, families, and financial institutions.
  • As a result, the entrepreneurial experience found itself challenging to raise money to fulfill its goal. Due to these challenges in obtaining finance through conventional fundraising channels, crowdfunding has become a significant factor in business financing. The COVID-19 situation dramatically accelerated the growth of crowdfunding, and the change is continuing in the post-pandemic scenario.

Crowdfunding Industry Segmentation

Crowdfunding is a method of raising capital to sponsor endeavors and companies. Fundraisers can use online platforms to gather money from a sizable audience. Startup enterprises and expanding businesses most frequently use crowdfunding to obtain alternative capital. It is a creative method of obtaining finance for new endeavors, enterprises, or concepts. It may also be a means of creating a network of support for the offering. One can access new customers and acquire helpful industry information by leveraging the power of the Internet community.

The crowdfunding market study has considered the types of crowdfunding, such as reward-based crowdfunding, equity crowdfunding, and donation-based crowdfunding. The report also includes the segmentation analysis for end-user applications such as cultural sector, technology, product, and healthcare, and geography (North America, Europe, Asia-pacific, Middle East & Africa, and Latin America).

The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

By Product Type
Reward-based Crowdfunding
Equity Crowdfunding
Donation and Other Product Types
By End-User Application
Cultural Sector
Technology
Product
Healthcare
Other End-User Applications
Geography
North America
Europe
Asia-pacific
Middle East & Africa
Latin America
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Crowdfunding Market Size Summary

The crowdfunding market is experiencing significant growth, driven by its appeal as an alternative funding source for entrepreneurs and startups facing challenges with traditional financing methods. Crowdfunding platforms serve as intermediaries, utilizing various marketing strategies, including social media, to attract potential donors. This model has gained traction, particularly in Europe, where regulatory frameworks are evolving to support and expand crowdfunding activities across the region. The market is characterized by a mix of reward-based and equity crowdfunding, with platforms facilitating investments in diverse sectors such as technology, real estate, and green energy. The COVID-19 pandemic has further accelerated the adoption of crowdfunding, as it provided a crucial financial lifeline during economic uncertainties.

The European crowdfunding landscape is notably robust, with countries like Germany leading in regulatory compliance and offering a wide range of investment opportunities. The introduction of the European Crowdfunding Service Provider Regulation has streamlined operations across member states, enhancing cross-border investment possibilities. The market is moderately consolidated, with a few key players dominating while others compete for market share by offering innovative technologies and services. Recent developments include strategic acquisitions and expansions, such as SeedBlink's acquisition of Symbid, which aim to strengthen the infrastructure for equity investments in European startups. As the market continues to evolve, crowdfunding is poised to play an increasingly vital role in the global financial ecosystem, providing accessible funding solutions for a diverse array of projects and ventures.

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Crowdfunding Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Value Chain Analysis

    3. 1.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

    4. 1.4 Assessment on the Impact of COVID-19 on the market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Product Type

      1. 2.1.1 Reward-based Crowdfunding

      2. 2.1.2 Equity Crowdfunding

      3. 2.1.3 Donation and Other Product Types

    2. 2.2 By End-User Application

      1. 2.2.1 Cultural Sector

      2. 2.2.2 Technology

      3. 2.2.3 Product

      4. 2.2.4 Healthcare

      5. 2.2.5 Other End-User Applications

    3. 2.3 Geography

      1. 2.3.1 North America

      2. 2.3.2 Europe

      3. 2.3.3 Asia-pacific

      4. 2.3.4 Middle East & Africa

      5. 2.3.5 Latin America

Crowdfunding Market Size FAQs

The Crowdfunding Market size is expected to reach USD 1.5 billion in 2024 and grow at a CAGR of 15.70% to reach USD 3.11 billion by 2029.

In 2024, the Crowdfunding Market size is expected to reach USD 1.5 billion.

Crowdfunding Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)