Advertisements

Leading Research Study Shows America’s Crowdfunding Industry Soared at an Amazing 105% Growth Rate in 2012

9 Apr

By Robert Hoskins

Crowdfunding is accelerating at an unprecedented rate and impacting government policy, informing enterprise innovation, and changing the role of financial institutions around the world. Today, massolution, a research firm specializing in the crowdsourcing and crowdfunding industries, released its annual 2013CF – Crowdfunding Industry Report.

Massolutions Crorwdfunding Research Study Reports that America's Crowdfunding Industry Grew a Whopping 105% in 2012

Massolutions Crorwdfunding Research Study Reports that America’s Crowdfunding Industry Grew a Whopping 105% in 2012

After collecting data from 308 active crowdfunding platforms (CFPs) worldwide and undertaking significant further research, the results reveal that CFPs raised $2.7 billion in 2012 – an 81% increase over 2011 – and successfully funded more than one million campaigns. North America and Europe account for over 95% of the total market.

“Consistent with our 2012 forecast, total crowdfunding volume nearly doubled last year, and with regulatory bodies continuing to pave the way, we expect global crowdfunding volumes to exceed $5 billion in 2013,” said CEO of massolution, Carl Esposti . “While lending-, donation-, and reward-based crowdfunding have thus far been leading this global financial revolution, equity-based crowdfunding is about to take center stage in the U.S. The JOBS Act, which will allow non-accredited investors to make investments in exchange for equity, is expected to go into effect by the end of 2013.”

Growth Rates By Region

Although crowdfunding offers a growing number of countries opportunities to access funds, North America and Europe raised much more capital than platforms in other regions.

  • North America: crowdfunding volumes grew 105% to $1.6 billion
  • Europe: crowdfunding volumes grew 65% to $945 million
  • In total, all other markets grew close to 125%

Growth Rates By Models

The growth in funding volumes was primarily driven by lending- and donation-based crowdfunding, and by SME adoption of reward-based crowdfunding. The growth in lending volumes mainly stemmed from crowdfunded micro-loans and community-driven loans to local SMEs.

  • Donation- and Reward-based crowdfunding grew 85% to $1.4 billion
  • Lending-based crowdfunding grew 111% to $1.2 billion
  • Equity-based crowdfunding grew 30% to $116 million

Most Active Categories

Crowdfunding first gained popularity as a way to fund creative, philanthropic, and social endeavors. This popularity prevails, but crowdfunding’s application for entrepreneurial ventures has also gained traction. Driven by models that offer financial return, the ‘Business/Entrepreneurship’ and ‘Energy/Environment’ categories are the next highest performing categories.

  • Social Causes are most active, driving close to 30% of all crowdfunding activity
  • Business & Entrepreneurship (16.9%), and the two major Art Categories follow: Films & Performing Arts (11.9%) and Music & Recording Arts (7.5%)
  • Energy & Environment (5.9%) is the emerging category among the five most active

“Obtaining reliable and analyzable data on all aspects regarding new constituents- and market-related activity will be critical to the creation of the new crowdfunding industry,” said EGS Managing Partner, Douglas Ellenoff . “This includes more research on funding platforms, deals, investors, amounts being raised, actually raised, industries, and geographies. For the last several years, massolution has committed itself to developing these necessary capabilities, relationships and infrastructure to be the best positioned and most reliable market leader for this purpose.”

# # #

Please click here to help us Crowdfund this website continued editorial development.

Please click here to help us Crowdfund this website’s editorial development

Advertisements

12 Responses to “Leading Research Study Shows America’s Crowdfunding Industry Soared at an Amazing 105% Growth Rate in 2012”

Trackbacks/Pingbacks

  1. Energy Savings: Crowdfunding Green Energy Innovation from the Crowd | Crowdfunding Press Center - April 17, 2013

    […] Leading Research Study Shows America’s Crowdfunding Industry Soared at an Amazing 105% Growth … […]

    Like

  2. New Crowdfunding Portal PROJECT 5650 Seeking Accredited Investors in Atlanta | Crowdfunding Press Center - April 17, 2013

    […] Leading Research Study Shows America’s Crowdfunding Industry Soared at an Amazing 105% Growth … […]

    Like

  3. Top 10 Value-Added #Business #Marketing Programs that Every #Crowdfunding Platform, Portal or Fundraising Website Needs to Attract Potential #Investors and #Fundraising Profile Managers | Crowdfunding Press Center - April 24, 2013

    […] to a leading crowdfunding industry research report by massolution, the crowdfunding industry in the United States grew by approximately 105% in 2012 […]

    Like

  4. Top 10 Value-Added Business Marketing Programs that Every Crowdfunding Platform, Portal or Fundraising Website Needs to Attract Potential Investors and Fundraising Profile Managers | Crowdfunding Press Center - April 24, 2013

    […] to a leading crowdfunding industry research report by massolution, the crowdfunding industry in the United States grew by approximately 105% in 2012 […]

    Like

  5. Top 10 Marketing Programs that Every Crowdfunding Platform, Portal or Fundraising Website Needs to Attract Potential Investors and Fundraising Profile Managers | Crowdfunding Press Center - April 25, 2013

    […] to a leading crowdfunding industry research report by massolution, the crowdfunding industry in the United States grew by approximately 105% in 2012 […]

    Like

  6. #CommunityLeader Launches 85% #Finance Program for Qualified #Broker/Dealers that Want to Launch a #Crowdfunding Platform | Crowdfunding Press Center - April 27, 2013

    […] Leading Research Study Shows America’s Crowdfunding Industry Soared at an Amazing 105% Growth … […]

    Like

  7. The State of Equity-Based Crowdfunding…Primed, Capitalized and Waiting on the SEC | Crowdfunding Press Center - April 30, 2013

    […] Leading Research Study Shows America’s Crowdfunding Industry Soared at an Amazing 105% Growth … […]

    Like

  8. #Crowdfund it Today Partners with #CommunityLeader to Deliver #Crowdfunding Solutions for #Entrepreneurs, Startups and Small Businesses in #Atlanta | Crowdfunding Press Center - May 2, 2013

    […] Leading Research Study Shows America’s Crowdfunding Industry Soared at an Amazing 105% Growth … […]

    Like

  9. #KrowdKidz Launches #Crowdfunding Site to Help #Parents Raise Money for #Infertility, #Surrogacy and #Adoption | Crowdfunding Press Center - May 2, 2013

    […] Leading Research Study Shows America’s Crowdfunding Industry Soared at an Amazing 105% Growth … […]

    Like

  10. New #NYU Stern Crowdfunding #Research Study Provides Insight into Crowdfunding Behavior and Successful #Crowdfunding Strategies | Crowdfunding Press Center - May 9, 2013

    […] Leading Research Study Shows America’s Crowdfunding Industry Soared at an Amazing 105% Growth … […]

    Like

  11. Top 10 Marketing Programs that Every Crowdfunding Platform, Portal or Fundraising Website Needs to Attract Potential Investors and Fundraising Profile Managers | Crowdfunding Press Center - June 3, 2013

    […] to a leading crowdfunding industry research report by massolution, the crowdfunding industry in the United States grew by approximately 105% in 2012 […]

    Like

  12. Real Estate #Crowdfunding to Take Center Stage at Crowd Invest Summit in Los Angeles | Crowdfunding PR, Social Media & Marketing Campaigns - May 3, 2017

    […] the signing of the JOBS Act in 2012, Real Estate Investing has been the fastest growing segment of the new Crowdfunding Industry. […]

    Like

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: