Global Crowdfunding Market to Hit $8.5bn Worth This Year
Recent years have witnessed the rising popularity of crowdfunding, with more and more startup companies and businesses utilizing this alternative method of raising money. According to data gathered by Finanso.se, the global crowdfunding market is set to maintain its rapid growth this year, increasing 23.3% year-on-year and reaching over $8.5 bn in transaction value.
Number of Crowdfunding Campaigns to Jump Over 12 Million by 2023
Crowdfunding represents a method of raising capital through the collective effort of a large pool of individual investors, mostly by using online platforms. It provides streamlined financial services and connects borrowers directly to lenders by offering various models of investing in business growth, from reward and donation-based models to profit sharing and equity crowdfunding.
In 2017, the global crowdfunding market reached $3.9bn value, revealed the Statista survey. By the end of 2018, it grew by more than 35% and reached $5.3bn worth. Since then, the transaction value of the entire crowdfunding industry increased by a remarkable 60%. The statistics indicate this strong rising trend is expected to continue in the next three years, with the market growing 12% year-on-year, and reaching nearly $12bn transaction value.
The recent data show the average funding per campaign in the crowdfunding segment amounts to $780 in 2020. Over the next twelve months, this figure is forecast to reach $840 and continue growing to nearly $1,000 by 2023.
The following years are also set to witness a growing number of crowdfunding campaigns. In 2017, there were more than 5.2 million campaigns globally. Over the last three years, this number doubled and jumped over 10.9 million, growing 25.4% year-on-year between 2019 and 2020. Statistics indicate the number of successfully launched crowdfunding campaigns will hit over 12 million by the end of 2023.
China Holds Nearly 85% of the Global Crowdfunding Market
From a global comparison, China represents the leading crowdfunding market in the world, expected to reach over $7bn in transaction value this year. Unlike Western crowdfunding industries, the Chinese market is dominated by major e-retailers like Alibaba, JD.com, and Suning, leveraging their substantial consumer bases.
With $782 million worth transactions or nearly ten times less than the Chinese market, the United States ranked as the second-largest crowdfunding industry globally. The United Kingdom ranked in the third place with $100 million market value, followed by France and Canada with $86 million and $47 million, respectively.