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.
In 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.
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