The global crowdfunding market size was valued at USD 1.25 billion in 2022. The market is projected to grow from USD 1.41 billion in 2023 to USD 3.62 billion by 2030, exhibiting a CAGR of 14.5% during the forecast period.

Crowdfunding Market Overview:

In this scope, we have looked at crowdfunding software from companies like GoFundMe, Kickstarter, Indiegogo, Inc., Double the Donation, Fundable, and others. Crowdfunding is a way to get money for a project or cause by asking a lot of people and businesses to give small amounts of money over a short period of time. It is done online through social networks, which makes it easy for groups to talk about a project or cause on their social platforms. Also, a private company will usually ask a large number of people for small donations.

Companies and people have raised billions of dollars in equity, debt, and donations for projects over the past five years by using social profiles, social networks, and the fact that web-based communication can spread quickly.

Since 2009, 4.9 million backers have given over USD 815 million to nearly 50,000 projects around the world through Kickstarter.

Market Dynamics:

Latest Trends:

Businesses are running reward-based campaigns to help the market grow.

Reward-based crowdfunding lets people raise seed money and pre-seed money through an online platform and offer investors a "perk" or gift in exchange for their money. It is called "pre-sales" when a project, person, or company raises money from investors and gives them something other than money in return. This lets businesses join an existing network and build on it, as well as advertise them for future use. This kind of funding is usually good for projects or companies in their early stages. For example, the Australian company Okra Solar has been testing a "plug-and-play smart controller" that makes it easy for neighbours to share electricity. The company has started a rewards-based crowdfunding campaign to finish a small pilot project that will show that its technology works. The campaign also brought in more than $45,000 in seed money for the company to use to build a prototype. So, campaigns like these that serve as a platform for crowdsourcing will help the crowdfunding market grow over the next few years.

Driving Factors:

The use of social media platforms to help the market grow has helped it grow.

The demand for upcoming crowdfunding projects is fueled by the number of crowdfunding activities that happen on social media sites. Social media and improvements in technology have given this industry a much-needed boost. More and more people are using social media sites like Twitter, Facebook, LinkedIn, Reddit, and Instagram to raise money by asking investors to give money. Also, more people are getting online and using smartphones, and the P2P (peer-to-peer) crowdfunding business model is becoming more popular. These factors should be good for the market in the coming years. For example, startups.com says that 3% of shares on Twitter, 12% of shares on Facebook, and 53% of shares via email lead to donations.

In March 2022, TipSnaps, a social media company owned by black people that helps 450k users make money from their content, announced a campaign on Republic to raise money. Companies like Robinhood, SpaceX, and GoPuff are well-known ones that have raised money on Republic. Because of this connection, people can become early investors in the startup.

So, people expect that active campaigns on social media will help the market grow.

Restraining Factors:

Security worries will slow the growth of the market.

The growth of the market is slowed down by the risk of scam projects and funding quackery. Lack of laws to protect transactions on these platforms slows the growth of the market. The securities bought through equity platforms are very risky, and there are few or no ways to get out of them, just like there aren't many options for traditional venture capital investors. So, it takes years for the business to reach its full potential, and investors may have to wait even longer for their savings to pay off. Also, fraud is becoming more common in many countries around the world, and the many risks associated with these investments are likely to slow the growth of the market.

So, the growth of the market is likely to be slowed by a lack of money to invest, the risks that come with investing, and rules that make it hard to invest.

Segmentation Analysis:

By Type Analysis:

The market can be divided into equity-based, debt-based, blockchain-based, and other types. Most of the crowdfunding market is expected to come from the debt-based segment. It is one of the best ways to get money for a new business. When compared to bank loans, debt-based has more benefits, but traditional bank loans have the same benefits. Also, investors get better interest rates on plans that are paid off in monthly instalments when they use debt-based funding. It is thought that these things will drive growth in the coming years.

During the forecast period, the blockchain-based segment is likely to grow quickly. It helps platforms deal with problems like high fees, a high risk of fraud, a lack of transparency, and other problems. Distributed ledger technology can make these platforms better in many ways and bring more donors and creators to them. Also, Blockchain technology offers better security and more transparency in a number of fields, such as healthcare, cybersecurity, finance, and the Internet of Things (IoT). So, the growth of the blockchain-based platform is likely to be sped up by fundraising campaigns for technologically advanced businesses. This is because there is a growing need for new technologies in many applications.

By End-user Analysis:

The market is divided into startups, NGOs, and individuals based on who will be using it. The largest share of the market belongs to startups, which helps them test their ideas and products on the market before they have a final Minimum Viable Product (MVP). Startups help with making new products, getting money, and getting feedback from investors and potential users all on one platform. It is a great way for new businesses to get money and build a group of people who want to help them. It's a good way to see how the market reacts to business ideas before committing to them.

Several NGOs use these kinds of campaigns to raise money. These campaigns make it easy to reach large groups of people and help raise money in a shorter amount of time. Organizations can post pictures, links, and videos that have something to do with the cause they are raising money for. These platforms work with popular social media like Facebook and Twitter to help organisations reach more donors. The platform can also be used through Brigade's app, which lets people and businesses build a network of people who support a certain cause.

Regional Insights:

During the forecast period, North America is expected to have the largest share of the global market. The region's market is growing because there are more and more new businesses starting up. There is a lot of potential for these kinds of activities in North America because big players like GoFundMe, Indiegogo Inc., and RealCrowd are there. North America also has a lot of new businesses that are just getting started.

During the time frame of the forecast, Asia Pacific is expected to grow quickly. Most of the growth in the region can be attributed to more new businesses starting up, more innovative projects, and more people getting access to the internet, which makes these platforms easier to use. Also, more digitization and better economic conditions give online platforms more opportunities to make money, which helps the Asia-Pacific market grow.

Europe's growth rate should stay steady because more rules are being made for the crowdfunding model. Europe's growing number of technology companies and the development of new technologies have opened up new ways to make money in real estate, banking, and other fields.

The fact that there are more and more startups in South America tends to open up a lot of business opportunities. Also, startups that are still in the "innovation stage" can use this platform to add to the rounds of funding from big investors and bring in users, suppliers, and business partners.

In the same way, these platforms in the Middle East and Africa face many of the same problems as businesses everywhere else. Different platforms, like Kickstarter, Indiegogo, and GoFundMe, have become well-known to help the market grow.

Scope Analysis

Recent Development:

• October 2022: Capital markets firm StartEngine acquires SeedInvest. The acquisition allowed StartEngine to provide more startups with the opportunity to raise capital online from retail investors.
• May 2022: Alira Health acquires RedCrow, an alternative investment crowdfunding platform that provides easy access to healthcare startups for a wide range of investors. RedCrow's integration allows the general public to invest in the development of private healthcare companies.
• July 2021: Mercado Bitcoin, parent company of 2TM Group, raises US$200 million in SoftBank Latin America Fund. This has allowed them to capitalize on the growing interest in cryptocurrencies in Brazil and Latin America, which has increased their market share significantly over the past few years.
• August 2021: Rare FND is the first crowdfunding platform in the blockchain space. Modern fundraising methods help non-profit organizations, startups, charities, researchers and individuals raise millions of dollars each year worldwide.
• October 2020: RealBlocks secures US$7 million in Series A financing to allow and expand digital access to the burgeoning alternative investment market. The new capital will enable RealBlocks to expand its engineering team and business development as the business battles to meet accelerating customer demand.

Market Segmentation

By Type:

• Equity-based
• Debt-based
• Blockchain-based
• Others

By End-User:

• Startups
• NGOs
• Individuals
• Others

By Companies:

• SeedInvest Technology, LLC (U.S.)
• Double the Donation (U.S)
• Kickstarter (U.S.)
• LegalVision Pty Ltd. (Australia)
• GoFundMe (U.S.)
• Indiegogo, Inc. (U.S.)
• Fundable (U.S.)
• RealCrowd (U.S.)
• Crowdcube (U.K.)
• Patreon (U.S.)
• Others