Crowdfunding Market Size, Share & Trends Analysis Report By Type (Equity-based, Debt-based) By Application (Food & Beverage, Technology, Media, Healthcare, Real Estate), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global crowdfunding marketsize was valued at USD 1.67 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 16.7% from 2023 to 2030. Rising crowdfunding activities on social media platforms to increase the demand and presence of upcoming projects is a significant factor driving the market growth. Social media platforms such as Facebook, Twitter, Reddit, Instagram, and LinkedIn are gaining more popularity for crowdfunding activities to raise funds by collecting donations from investors. At the same time, rising technological innovations in crowdfunding platforms by using artificial intelligence (AI) and machine learning technologies are a major factor contributing to the growth of the market.

Numerous crowdfunding platform providers across the globe are focusing on expanding their presence to help startup companies raise funds from investors. Additionally, government entities worldwide are also keen on supporting product launches related to crowdfunding platforms, thereby contributing to the growth of the market. For instance, in May 2021, Government officials in Dubai helped launch Dubai Next, a crowdfunding platform to support entrepreneurship in Dubai. The crowdfunding platform helped to support creative ideas and projects of emiratis to start their own businesses in Dubai.

Crowdfunding campaigns also offer better exposure to upcoming projects, thereby driving the growth of the market. For instance, as per statistics cited by Zippia, 22.4% of all crowdfunding operations are successful campaigns. Successful crowdfunding campaigns raise an average of USD 28,656, whereas crowdfunding campaigns with personal videos raised 150% more than those campaigns done without videos. Crowdfunding campaigns with daily updates regularly raise 126% more than the campaigns with no updates.

The rising adoption of AI, Blockchain, and machine learning technologies by crowdfunding platforms to mitigate investors' concerns is contributing to the growth of the market. Crowdfunding platforms use AI tools to help people start online campaigns, predict the investor's behavior, create innovative content, detect fraud, show targeted ads, and verify the campaigner's identities. Additionally, crowdfunding platforms have also started experimenting with AI-driven chatbots to assist the campaigners in fundraising deals and launch campaigns quickly. Such adoption of technologies is expected to create lucrative growth opportunities for the market players over the forecast period.

The gaming industry is also witnessing successful fundraising campaigns to raise funds through crowdfunding platforms. For instance, Kickstarter, in 2020, raised USD 23 million for video game projects from its own crowdfunding platform. However, a lack of legal framework for secure transactions on crowdfunding platforms may act as a restraint to market growth. Financial regulators across the globe are making efforts to make fundraisers aware of the innovative crowdfunding platforms, thereby contributing to the growth of the market.

COVID-19 Impact Analysis

The COVID-19 pandemic positively impacted the growth of the crowdfunding market. Small-scale organizations raised funds using crowdfunding to secure their ongoing projects. Donations to charities that provide support and empower people are some of the factors fulfilled by crowdfunding platforms. At the same time, several vendors across the globe have seen a surge in the number of online donations. For instance, crowdfunding platforms such as ImpactGuru.com, Milaap, and Ketto have seen a surge in the number of online donations during the second wave of the COVID-19 pandemic.

Type Insights

The debt-based crowdfunding segment led the market and accounted for more than 60.0% of the global revenue in 2022. The rising demand for debt-based crowdfunding by startup companies to raise funds quickly as compared to traditional banks is a major factor driving the segment growth. Debt-based crowdfunding allows startup companies to access funds at a lower cost without navigating through the complicated procedures of conventional banking. Moreover, debt-based crowdfunding also provides investors with better interest rates for funding projects in regular monthly installments. Such factors are anticipated to drive the growth of the segment over the coming years.

The equity-based crowdfunding segment is anticipated to register the highest CAGR over the forecast period. The ability of equity-based crowdfunding to raise funds from individuals in return for the equity share from the company is a significant factor driving the segment growth. Equity-based crowdfunding offers numerous benefits to fundraisers, such as selling the shares to multiple investors, which may help to raise more cash, no repayment of loans or debt-based credit checks, and raising the firms in a single investment. Moreover, equity-based crowdfunding also offers benefits for investors, such as gaining part ownership, investing as per their needs, and allowing investors to choose the businesses they are more passionate about.

Application Insights

The food & beverage segment dominated the market and accounted for more than 24.0% share of the global revenue in 2022. The growth of the segment can be attributed to the rising number of food & beverage startup companies across the globe. Food startups are expanding their business to increase their presence in the market. For instance, in November 2022, 8 Myles, a macaroni and cheesemaker, launched an equity crowdfunding campaign and raised money to expand its operation, purchase production equipment to increase capacity, and build brand awareness. Moreover, beverage brands such as Waku also launched a crowdfunding campaign to support their expansion plans.

The technology segment is anticipated to register significant growth over the forecast period. Innovative technologies such as AI, blockchain, and machine learning are becoming increasingly popular throughout the end-use industry. For instance, blockchain technology offers better security and transparency in a number of industries, including cybersecurity, healthcare, finance, and the internet of things. As the demand for these innovative technologies is increasing in various applications, fundraising campaigns for technological companies are also expected to increase, thereby contributing to the growth of the segment.

Regional Insights

North America dominated the crowdfunding market and accounted for more than a 29.0% share of the global revenue in 2022. The presence of prominent players such as Kickstarter, Indiegogo, Patreon, and Seed&Spark provides a high potential for crowdfunding activities in the North American region. As per statistics from Demandsage, a software company, North America has the highest number of unicorn startups. For instance, the U.S. has 72,560 startups, and Canada has 3,446. As a result, with more startup companies, there would be a huge opportunity for crowdfunding activities, thereby contributing to regional growth.

Asia Pacific is expected to emerge as the fastest-growing regional market over the forecast period. The regional growth can be attributed to the rising internet penetration, which provides better accessibility to crowdfunding platforms. Moreover, favorable economic conditions and increasing digitization create more growth opportunities for online crowdfunding platforms, which, in turn, is boosting the Asia Pacific market growth. Additionally, the presence of numerous crowdfunding platforms in this region, such as Wujudkan.com., ArtisteConnect.com, pitchIN.my, and ToGather.Asia creates more growth opportunities for regional market growth.

Key Companies & Market Share Insights

Major players operating in the crowdfunding industry are focusing on developing solutions to help raise funds for startups, charities, non-profit organizations, and researchers. Numerous vendors are also focusing on developing blockchain-based crowdfunding platforms to simplify the funding process. For instance, in August 2022, Rare, a crowdfunding solution provider, launched Rare FND, a crowdfunding platform based on the Blockchain space. Such blockchain-based product launches are anticipated to create more growth opportunities for the market over the forecast period.

The need for crowdfunding solutions is increasing because they are adaptable, scalable, and effective methods to raise money. The market players are focused on augmenting their product offerings to better cater to the changing needs of investors. Vendors are also focusing on business strategies, such as partnerships, mergers & acquisitions. Some prominent players in the global crowdfunding market include:

• Kickstarter, PBC

• Indiegogo, Inc.

• GoFundMe

• Fundable

• Crowdcube

• SeedInvest Technology, LLC

• Fundly

• RealCrowd

• RM Technologies LLC.

• Wefunder

Crowdfunding Market Report Scope

Global Crowdfunding Market Segmentation

The report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global crowdfunding market report based on type, application, and region:

• Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Equity-based Crowdfunding

  • Debt-based Crowdfunding

  • Others

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • Food & Beverage

  • Technology

  • Media

  • Real Estate

  • Healthcare

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa