Global P2P Crowdfunding Market to Reach $34.4 Billion in 2015

Global P2P Crowdfunding Market to Reach $34.4 Billion in 2015

Global Crowdfunding

Report Forecasts Total Global Crowdfunding to Reach $34.4 Billion in 2015, With North America Remaining the Largest Market and Asia, Outpacing Europe in 2014, in Second Place.

Global CrowdfundingIn just a matter of a few years, Crowdfunding has evolved from a small creative concept to a big industry that is influencing government policies and encouraging banking innovation by financial institutions. According to the Annual 2015 CF – Crowdfunding Industry Report released by Mass Solution, a research firm specializing in the crowdsourcing and crowdfunding industries, Crowdfunding platforms (CFPs) has raised $16.2 billion in 2014, which is almost a 167% increase over the last year.

According to the report, this year too, there will be an increase in crowdfunding and is expected to raise $34.4 billion.

Key Findings of the Crowdfunding Industry Report 2014

  • While North America is still the largest market, which grew by 145% to 9.46 billion this year, Asia has overtaken Europe to become the second largest market for crowdfunding. Crowdfunding volumes for Asia grew by 320% to $3.4 billion, while for Europe it grew by 141% to $3.26 billion.
  • The growth in funding volumes was largely due to lending-based funding that grew by 223% to $11.08 billion. But, other crowdfunding models too saw an increased growth that is a good indication of more allocations across other models in the near future. Equity-based crowdfunding (also known as P2P lending), hybrid-based crowdfunding and royalty-based crowdfunding grew by 182%, 290% and 336% respectively.
  • Business and entrepreneurship was the most popular crowdfunding category that managed to raise $6.7 billion in 2014. Crowdfunding managed to collect $3.6 billion for social causes and films and art raised $1.97 billion. Other lead categories with the highest funding volume were real estate and music and recording arts that collected $1.01 billion and $736 million respectively.

To buy and read the full Crowdfunding Industry Report, click here.

We invite you to share your personal thoughts on crowdfunding and flag any banking innovation partnerships between a financial institution and a P2P crowdfunding service in the Americas, EMEA or APAC.

If you enjoyed reading my article or if you wanted to react, I invite you to connect with me here, on twitter (@Visible_Banking) or on LinkedIn.

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Based in London, Christophe is an entertaining social media keynote speaker and a trusted advisor to the global financial services industry on the topics of social media, social business and digital innovation. Christophe has contributed to over 140 events in 18 countries. Currently, Christophe is 'Social Media Senior Managing Consultant' at IBM Interactive Experience. He's also a Digital Advisor at the Financial Services Forum and the Moller Centre (part of the Churchill College in Cambridge). Christophe's views on VisibleBanking.com are his own, not necessarily his employer's.

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