Crowdinvesting Market Size, Share & Trends Analysis Report By Type (Equity-based Crowdfunding, Real Estate Crowdfunding, Profit Sharing), By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global crowdinvesting market size was valued at USD 5.48 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 8.3% from 2021 to 2028. The growing use of equity-based crowdfunding witnessed in the real estate sector drives the market. Moreover, high adoption for alternative finance instruments, easy access to financing services, and the price saved by the users are the key factors driving the market. The COVID-19 outbreak positively impacted the market growth. With the COVID-19 pandemic, lockdowns, and restricted travel options, business persons and investors shifted to equity crowdfunding to pursue funding and invest, correspondingly, while staying safe.

Crowdinvesting is known by different names such as equity-based crowdfunding, investment crowdfunding, and crowd equity. Within the quickly growing alternative finance sector, crowdinvesting is developing as a famous method of development finance. It is a platform through which a large group of investors can invest in start-up businesses and small companies in the return for equity. The digital revolution has expanded the technological abilities of investors where they use time and energy to learn about new products.

Crowdinvesting is the online platform in which many investors invest in a project, each making a small financial contribution in proportion to the total amount of capital necessary. Over time, the investor obtains the amount invested plus attractive interest in return as a cash payment. A substantial advancement in technology in the last few years has introduced investors to the digital investing platform, therefore investors may form new investing behaviors as a result of digital innovation.

The COVID-19 pandemic has positively affected the market. With COVID-19 effects felt all over the world, businesses all over have required help in debt relief and financial support. Crowdinvesting platforms have waived certain fees or offered additional credits to the consumers of their platforms, all in an effort to gain additional traction, and offer assistance to those impacted by the COVID-19 pandemic. Equity crowdfunding will expect change to be more accessible, adaptive, and smart in a post-COVID-19 world.

Type Insights

The real estate crowdfunding segment dominated the market and held a revenue share of more than 60.0% in 2020. With the crowdinvesting platform, engaging in real estate crowdfunding has been made much more accessible. Crowdinvesting is a viable option for investors who want to surge their debt exposure. Real estate crowdfunding is gaining popularity globally although it is a comparatively new method of raising capital for investments in this sector. By using crowdinvesting platform, the investors can invest in an extensive variety of properties without having to deal with mortgage brokers, mediators, or contractors. Thus, the real estate crowdfunding demand is high, thus considerably contributing to the market revenue.

The equity-based crowdfunding segment is expected to register the highest CAGR of 8.7% from 2021 to 2028. Equity crowdfunding has developed as a market for creators where they can collect funding from their near networks such as family, friends, customers, and current shareholders and from a large number of investors in return for an equity share in the business. Equity crowdfunding is now known as a financing alternative to traditional finance sources and is getting the attention of business persons and policymakers. Equity crowdfunding platforms offer an opportunity for business persons to minimize their dependence on their social networks and overcome regional constraints. Thus, the demand for equity-based crowdfunding is increasing rapidly.

Regional Insights

Asia Pacific accounted for the largest revenue share of over 80.0% in 2020. According to the University of Cambridge Judge Business School, China was the global leader in crowdinvesting with a market share of more than 80.0% in 2020.In China, crowdinvesting as a source of finance has developed rapidly and evolved with incredible speed. According to the Crowdfund Insider, the substantial development of equity crowdfunding in Asia Pacific is encouraged by government regulatory changes. Thus, it contributes to significant revenue generation in Asia Pacific.

North America is expected to register the highest CAGR of 8.9% from 2021 to 2028. The U.S. is the largest contributor to the market in terms of annual volume, product innovation, model diversity, institutional participation, and the number of active crowdinvestment platforms. Many factors such as differential levels of GDP, strong implementation of online banking, an investment climate that funds and supports technological innovation, a culture of modernization in the financial services industry, and a helpful political and regulatory environment are expected to increase the demand for crowdinvesting over the forecast period.

Key Companies & Market Share Insights

The market for crowdinvesting is characterized by the existence of established and new companies. Most of the companies operating in the market have implemented various strategies such as new product launches, collaborations, partnerships, mergers & acquisitions, and joint ventures to reinforce their position in the global market and gain maximum market share. Some prominent players in the global crowdinvesting market include:

• EquityNet Inc.
• Crowdcube Capital Ltd.
• Seedrs Limited
• FundedByMe AB
• CAMPFIRE, Inc.
• Companisto GmbH
• Wefunder Inc.
• SeedInvest Technology, LLC
• StartEngine Crowdfunding, Inc.
• Indiegogo, Inc.

 Crowdinvesting Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2028. For the purpose of this study, Million Insights has segmented the global crowdinvesting market report on the basis of type and region:

• Type Outlook (Revenue, USD Million, 2017 - 2028)
  • Equity-based Crowdfunding
  • Real Estate Crowdfunding
  • Profit Sharing
• 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