The world crowdfunding market is growing at a rate of about 12% year on year. China is the top market followed by the United States and the United Kingdom. In response to the ongoing Covid-19 epidemic, many crowdfunding projects have been launched to fight the coronavirus.
Born2Invest gives you the latest scientific breakthroughs like this from all over the world. Our companion app allows you to get finance headlines from industries like banking, crowdfunding, and much more. Our software distills news into 500 characters or less so that no matter where you are or how busy your schedule is, you are always updated.
In recent years, the popularity of crowdfunding has been increasing, with more and more companies, start-ups, and businesses using this alternative method of fundraising. According to data collected by Finanso.se, the global crowdfunding market is expected to maintain its rapid growth this year, increasing by 23.3% year on year and reaching over $8.5 billion in value.
Upward trend: 12% yearly growth for the crowdfunding market
According to statistics data, the global crowdfunding market was worth $3.9 billion in 2017. At the end of 2018, it grew by more than 35% and reached a value of $5.3 billion. Since then, the transaction value of the entire crowdfunding industry has increased by a remarkable 60%.
Statistics indicate that this strong upward trend is expected to continue over the next three years, with the market growing by 12% year-on-year, reaching almost $12 billion in transaction value.
The number of campaigns is increasing
Recent data shows that the average funding per campaign in the crowdfunding segment amounts to $780 in 2020. Over the next twelve months, this figure should reach $840 and continue to grow to nearly $1,000 by 2023.
In the following years, an increasing number of crowdfunding campaigns are expected. In 2017, there were more than 5.2 million campaigns globally. In the last three years, this number has doubled and exceeded 10.9 million, with a growth of 25.4% year-on-year between 2019 and 2020. Statistics indicate that the number of successfully launched crowdfunding campaigns will reach over 12 million by the end of 2023.
Innovation for the future: the e-Novia example
Why is it important to promote crowdfunding culture in Italy? It can also open new scenarios for the innovation ecosystem. This is demonstrated by the Equity crowdfunding campaign organized by Fin-Novia – a corporate vehicle dedicated to raising capital for investment in e-Novia SpA – on the BacktoWork platform.
Almost $9 million (€8 million) were raised in just over a month, ranking the crowdfunding campaign as a national record and among the top ten in Europe. This operation laid the foundations for the stock exchange listing of the company specializing in the acceleration of companies with a focus on collaborative mobility, humanized machines, and augmented humans.
Through the partnership with Intesa Sanpaolo Private Banking, the Equity crowdfunding platform (owned by Intesa Sanpaolo through Neva Finventures) has opened a new growth path for the world of startups and beyond.
China holds almost 85% of the global crowdfunding market
By global comparison, China is the world’s largest crowdfunding market, expected to reach a transaction value of more than $7 billion this year. Unlike the Western crowdfunding industries, the Chinese market is dominated by major online retailers such as Alibaba, JD.com, and Suning, which leverage their important user bases.
With transactions worth $782 million, almost ten times less than the Chinese market, the U.S. ranked as the second-largest crowdfunding market globally. The United Kingdom is the leading European market and third globally, with $100 million in market value, followed by France and Canada with $86 million and $47 million, respectively.
Crowdfunding campaigns used to cope with the coronavirus emergency
There is no lack of examples of noble-minded crowdfunding campaigns, especially in the last days. With the worsening of the coronavirus emergency in Italy, several crowdfunding projects have been announced to help hospitals and Civil Defence in containment operations.
The Fedez and Chiara Ferragni couple, for example, has already raised over $3.4 million (€3 million) in less than 24 hours on the GoFundMe platform. The funds will be donated to the intensive care unit of the San Raffaele hospital in Milan.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in Money.it, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
How these three technology companies are defining the post-COVID world
Covid-19 has upended our lives in dozens of ways, and as the US continues to struggle with rising case numbers,...
Hope in Morocco: after 4 months of confinement the economy is in recession but the government finally announces a recovery plan
Moroccans are suffering harshly from the social consequences of four months of health crisis. The tourism sector in particular, and...
Record gold prices continue apace and silver hits its price target
Gold prices continue to soar and silver is slowly beginning to break out of a multi-year channel. Precious metals bulls...
Possible Ka-Booms as Far as the Eyes Can See
Explosive growth in Silver and Gold are but one of many indicators of an overbought market, with large banks and...
How the Ministry of Agriculture is trying to help farmers in Burkina Faso
Burkina Faso is one of the African countries affected by insufficient rainfalls. Due to the global situation and the lockdown...
Featured6 days ago
Deutsche Bank joins the fintech company Traxpay
Featured6 days ago
Why sustainable investment is the path to corporate resilience
Cannabis5 days ago
Demecan launches an online cannabis shop for pharmacies
Biotech7 days ago
The Government of Catalonia awards Roche a €9.2 million contract for analysis services