Crowdfunding Market Size, Share & Trends Analysis Report By Type (Small Businesses, Startups, Artists), By Region (Asia Pacific, North America, Europe, MEA), And Segment Forecasts, 2021 - 2028

Report Overview

The global crowdfunding market size was valued at USD 929.8 million in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 4.4% from 2021 to 2028. Easy access to capital in comparison with traditional funding is the key driver of the market. Moreover, social media as a source of free-of-cost promotion is another factor that drives the growth of this market. The COVID-19 outbreak positively impacted the global market. Due to the COVID-19 pandemic, governments across various countries imposed nationwide lockdowns and restrictions on travel. As a result, businesspersons and investors shifted to crowdfunding to pursue funding and to invest. Crowdfunding, also known as reward-based crowdfunding, mainly involves individuals contributing to a project or business with the expectation of getting a non-monetary reward in return, including goods or services at a later stage.

Crowdfunding provides a product or service in return for the money contributed to the project or business. Crowdfunding is an attractive fundraising option due to its no-money-payback benefit. Crowdfunding has been an eye-catching fundraising choice for thousands of small businesses and creative projects. It is used to collect funds for specific projects, such as R&D, producing new prototypes, and developing new products. It provides direct access to the market and removes the requirement for banks or venture capitalists. It is considered a scalable, flexible, and efficient fund-raising solution as compared to conventional methods.

The COVID-19 pandemic has positively affected the market. Crowdfunding has been largely used by businessmen and small-scale businesses to raise capital for their creative projects during the COVID-19 pandemic. According to the Journal of Medical Internet Research, the total number of GoFundMe campaigns associated with the COVID-19 augmented by 736% on March 16, 2020, and another 510% in the next week. According to Enventys Partners, the number of Kickstarter projects from January to April 2020 experienced a surge of 8.93% over the previous year in spite of the COVID-19 pandemic.

Type Insights

The small businesses segment dominated the market and contributed a revenue share of more than 55% in 2020 and is projected to expand further at a steady CAGR from 2021 to 2028. Crowdfunding has grown largely in popularity over the last couple of years and is a viable option to consider among small businesses. Various small businesses are using crowdfunding as a means to develop their current offerings. Although crowdfunding is often related to raising funds for new businesses, months of lockdowns and restrictions have led to several small businesses seeking crowdfunding as a way to get back to normal operations. According to The Wall Street Journal, numerous small businesses have launched Go Fund Me campaigns in 19 nations in recent times.

Thus, the crowdfunding demand for small businesses is high, which, in turn, contributed more to the market revenue. The startups segment is expected to witness the fastest CAGR of more than 4.5% from 2021 to 2028. Crowdfunding is a useful way to raise funds at the start-up stage or to collect funds for growth. According to a recent report on Startups.com, nearly 50% of crowdfunded campaigns were effective and more than 75% of campaigns surpass their target goal. Several startups have become successful after getting crowdfunded. Thus, the demand for crowdfunding from startups is increasing rapidly and is expected to augment the segment growth over the forecast period.

Regional Insights

North America is projected to register the fastest growth rate of 4.9% from 2021 to 2028. According to the Global Entrepreneurship Monitor, the start-ups in the U.S. hold over 17.4% share and Canada holds an 18.2% share of the country’s total population. Thus, there will be a large opportunity for crowdfunding in North America. Moreover, with the high demand for crowdfunding, this opportunity further expands. Thus, the region is expected to grow at the fastest CAGR over the forecast period. On the other hand, Asia Pacific is estimated to be the largest regional market.

It is projected to account for the maximum share of global revenue by 2028. According to the Cambridge Centre for Alternative Finance, reward-based crowdfunding is a famous crowdfunding model in China in terms of the number of participants. In China, crowdfunding as a source of finance has developed rapidly and evolved with incredible speed. According to the Advances in Crowdfunding Research and Practice, 96% of reward-based crowdfunding platforms in Asia Pacific place “media and promotion” as their key focus of R&D. Thus, the demand for crowdfunding is high and it contributes to the revenue of the regional market.

Key Companies & Market Share Insights

The global market is characterized by the existence of established as well as new companies. Most of the companies operating in this market have adopted different strategies, such as collaborations, partnerships, mergers & acquisitions, and joint ventures, to reinforce their position in the global market and to gain maximum market share. Some of the prominent players in the global crowdfunding market include:

• GoFundMe, Inc.
• Indiegogo, Inc.
• Kickstarter, PBC
• Patreon, Inc.
• Pozible Pty Ltd.
• Thunder Fund
• Crowdfunder Ltd.
• Fundable LLC
• RocketHub Inc.
• Nav Technologies, Inc.

Crowdfunding Market Report Scope

Segments Covered in the Report

This 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 2028. For the purpose of this study, Million Insights has segmented the global crowdfunding market report on the basis of type and region:

• Type Outlook (Revenue, USD Million, 2017 - 2028)
  • Small Businesses
  • Startups
  • Artists
• Regional Outlook (Revenue, USD Million, 2017 - 2028)
  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
  • Asia Pacific
    • China
    • India
    • Japan
  • Central & South America
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa