March 23rd, 2017
2015 Massolution Report Released: Crowdfunding Market Grows 167% in 2014, Crowdfunding Platforms Raise $16.2 Billion
Crowdfund Insider | | March 31, 2015
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Report Forecasts Total Global Crowdfunding to Reach $34.4 Billion in 2015
North America Remaining the Largest Market and Asia, Outpacing Europe in 2014, in Second Place
As crowdfunding accelerates at an unprecedented rate, it’s impacting government policy, informing enterprise innovation and changing the role of financial institutions around the world. Today the research firm Massolution which specializes in the crowdsourcing and crowdfunding industries released its annual 2015CF – Crowdfunding Industry Report. After collecting data on 1,250 active crowdfunding platforms (CFPs) worldwide and undertaking significant further research, the results reveal that CFPs raised $16.2 billion in 2014, a 167% increase over the $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, Massolution forecasts this lead will increase significantly in 2015 with the delta between Asia and Europe increasing to over $4 Billion. We predict that Europe’s 20.1% of market share in 2014 will decline slightly in 2015 when Europe will account for 18.8% of the worldwide market.
“In April 2013 we predicted that total crowdfunding volume by the end of 2013 would nearly double from 2012’s $2,7 billion, but in fact the market reached $6.1 billion, largely due to faster growth than anticipated in Asia. Acceleration continued in 2014 achieving an impressive $16.2 billion in funding volume and we are forecasting that worldwide crowdfunding volumes will more than double again in 2015, to reach $34.4.” said Massolution CEO Carl Esposti. “Surprises materializing from this year’s research included GoFundMe topping Kickstarter as the largest donation/reward based CFP and astounding growth in the P2P lending market in Asia, stemming largely from the Chinese market. Further, the top 5 CFPs in North America increased wallet share during the period 2011-14 while in Europe the top 5 lost 30% of their market share, indicating that the markets in North America and Europe are shaping up very differently.”
Growth Rates By Region in 2014
North America retained its market lead in 2014 but Asia topped Europe to become the second largest region by funding volume.
- North America: crowdfunding volumes grew 145% to $9.46 billion
- Asia: crowdfunding volumes grew 320% to $3.4 billion
- Europe: crowdfunding volumes grew 141% to $3.26 billion
- South America, Oceania and Africa: crowdfunding volumes grew 167%, 59% and 101%, respectively
Growth Rates By Models in 2014
The 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.
- Lending-based crowdfunding grew 223% to $11.08 billion
- Equity-based crowdfunding grew 182% to $1.1 billion
- Hybrid-based crowdfunding grew 290% to $487 million
- Royalty-based crowdfunding grew 336% to $273 million
- Donation- and Reward-based crowdfunding grew 45% and 84% respectively.
Massolution is a unique research, advisory and implementation firm that specializes in crowdsourcing solutions for private, public and social enterprises. Massolutions works with leading organizations to deliver crowdsourcing business models that access an on-demand, scalable workforce, to deliver improved business performance and to drive product and service innovation and enhanced levels of customer engagement.
The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both social and investment crowdfunding stakeholders across the country. NCFA Canada provides education, research, leadership, support and networking opportunities to over 950+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding industry in Canada. Learn more About Us or visit www.ncfacanada.org.