According to a recent report titled “2015CF - Crowdfunding Industry Report” from Massolution, a research firm specializing in the crowdsourcing and crowdfunding industries, global crowdfunding market is expected to reach USD 34.4 billion in 2015.
After collecting data on 1,250 active crowdfunding platforms (CFPs) worldwide and undertaking significant further research, the results reveal that CFPs raised USD 16.2 billion in 2014, a 167% increase over the USD 6.1 billion raised in 2013. North America still accounts for the largest market but 2014 saw Asia overtake Europe, by a small margin. With exponential growth in Asia, the report forecasts this lead will increase significantly in 2015 with the delta between Asia and Europe increasing to over USD 4 billion. The research predicts that Europes 20.1% of market share in 2014 will decline slightly in 2015 when Europe will account for 18.8% of the worldwide market.
The study also points out that North America retained its market lead in 2014 but Asia topped Europe to become the second largest region by funding volume. Therefore, in North America crowdfunding volumes grew 145% to USD 9.46 billion; in Asia, crowdfunding volumes grew 320% to USD 3.4 billion; in Europe, crowdfunding volumes grew 141% to USD 3.26 billion; in South America, Oceania and Africa crowdfunding volumes grew 167%, 59% and 101%, respectively.
The report also notes that growth in funding volumes continued to be primarily driven by lending-based crowdfunding, but significant annual growth in equity-based crowdfunding and increased adoption of newer hybrid and royalty-based models indicates that the allocation of funding volume across different models will be more highly distributed over the coming years. Therefore, lending-based crowdfunding grew 223% to USD 11.08 billion; equity-based crowdfunding grew 182% to USD 1.1 billion; hybrid-based crowdfunding grew 290% to USD 487 million; royalty-based crowdfunding grew 336% to USD 273 million; donation- and reward-based crowdfunding grew 45% and 84% respectively.
The research also finds out that crowdfundings popularity as a way to fund creative, philanthropic, and social endeavors still prevails but crowdfundings application for entrepreneurial ventures began to gain significant traction over the last few years. Business and entrepreneurship had become the lead category by 2012 at 27.4% of total crowdfunding volume and in 2014 had increased in importance, accounting for over 40% of worldwide funding volume. In 2014, the lead categories share of funding volume was business and entrepreneurship at 41.3% / USD 6.7 billion; social causes 18.9% / USD 3.06 billion; films and performing arts 12.13% / USD 1.97 billion; real estate 6.25% / USD 1.01 billion; music and recording arts 4.54% / USD 736 million.
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