The global crowdfunding market is expected to witness high growth due to use of free cost software tools. Crowdfunding is also called “online fundraising”, “peer-to-peer fundraising, or “social media fundraising”. It is a process of funding a project by raising small amounts of money from a large number of people, via the internet. It is a form of crowdsourcing as well as alternative finance. Additionally, it is a method of raising capital through the mutual effort of friends, family, clients, and single investors.
According to AMA, the market for Crowdfunding is expected to register a CAGR of 16.71% during the forecast period to 2026. This growth is primarily driven by Rising Dependency Due to fast Way to Finding Finance and Adoption Due to Free Cost Marketing Tool.
Globally, a noticeable market trend is evident High Adoption Due to Use of Pre-Sell a Product
. The Specialized Finance sector in the North America region has been increasing at a sustainable rate and further growth is expected to be witnessed over the forecast period, owing to the robust investments and expansion in production facilities in the region. Major Players, such as Gofundme (United States), Indiegogo (United States), Kickstarter (United States), Patreon (United States), CircleUp (United States), Angel List (United States), RocketHub (United States), Dragon Innovation (United States), YouCaring (United States) and CrowdRise (United States) etc have either set up their manufacturing facilities or are planning to start new provision in the dominated region in the upcoming years.
Key Developments in the Market:
on 13th Jan 2022, The crowdfunding platform GoFundMe announced Thursday that it has signed a deal to acquire the nonprofit fundraising company Classy, a move that will help the largest crowdfunding site further increase its influence in the philanthropic sector.
On 5th April 2018, GoFundMe, the world’s largest social fundraising platform have acquired the biggest rival YouCaring. and On 17th Jan 2018, Angle List, the largest crowdfunding platform from the United States and Start-up community has launched ‘Syndicates For India’, which is a service that allows individual investors to pool in money and invest in larger rounds in India as well as United States companies.
According to the US Securities and Exchange Commission, “Rule 506 of Regulation D provides two distinct exemptions from registration for companies when they offer and sell securities. Under Rule 506(b), a “safe harbor” under Section 4(a)(2) of the Securities Act, a company can be assured it is within the Section 4(a)(2) exemption by satisfying certain requirements such as The company cannot use general solicitation or advertising to market the securities, The company may sell its securities to an unlimited number of "accredited investors" and up to 35 other purchasers. All non-accredited investors, either alone or with a purchaser representative, must be sophisticated—that is, they must have sufficient knowledge and experience in financial and business matters to make them capable of evaluating the merits and risks of the prospective investment.”
- Rising Dependency Due to fast Way to Finding Finance
- Adoption Due to Free Cost Marketing Tool
- High Adoption Due to Use of Pre-Sell a Product
- Growing Use of Social Media
- Rising Risk of Failures
- Lack of Awareness about Crowdfunding
Increasing Opportunities in Emerging Countries
AMA Research follow a focused and realistic research framework that provides the ability to study the crucial market dynamics in several regions across the world. Moreover, an in-depth assessment is mostly conducted by our analysts on geographical regions to provide clients and businesses the opportunity to dominate in niche markets and expand in emerging markets across the globe. This market research study also showcase the spontaneously changing Players landscape impacting the growth of the market. Furthermore, our market researchers extensively analyse the products and services offered by multiple players competing to increase their market share and presence.
Customization in the Report
AMA Research features not only specific market forecasts, but also include significant value-added commentary on:
- Market Trends
- Technological Trends and Innovations
- Market Maturity Indicators
- Growth Drivers and Constraints
- New Entrants into the Market & Entry/Exit Barriers
- To Seize Powerful Market Opportunities
- Identify Key Business Segments, Market Proposition & Gap Analysis
Against this Challenging Backdrop, Crowdfunding Study Sheds Light on
The Crowdfunding Market status quo and key characteristics. To end this, Analyst at AMA organize and took survey of the Crowdfunding industry Players. The resultant snapshot serves as a basis for understanding why and how the industry can be expected to change.
Where Crowdfunding industry is heading and what are the top priorities. Insights are drawn from financial analysis, the survey and interviews with key executives and industry experts.
How every company in this diverse set of Players can best navigate the emerging competition landscape and follow a strategy that helps them position to hold value they currently claim, or capture the new addressable opportunity.