Tag Archives: Crowdfunding Platforms

Leading Crowdfunding Research Industry Analyst Firm Forecasts $34.4 Billion Global Industry Growth in 2015

31 Mar

Massolution crowdfunding research reports that crowdfunding portals raised $16.2 billion in 2014, a 167% increase over the $6.1 billion raised in 2013

 By Robert Hoskins

Los Angeles, California – Crowdfunding is accelerating at an unprecedented rate and impacting government policy, informing enterprise innovation, and changing the role of financial institutions around the world. Massolution, the leading research firm in world that specializes in reporting on the growing crowdfunding industry, released its annual 2015CF – Crowdfunding Industry Report

2015 Crowdfunding Industry Report Covering the United States Europe Asia, South America and Africa

2015 Crowdfunding Industry Report Covering the United States, Europe, Asia, South America, Oceania and Africa

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.

The report predicts 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 Carl Esposti, Massolution’s CEO.  “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 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

Most Active Categories in 2014
Crowdfunding’s popularity as a way to fund creative, philanthropic, and social endeavors still prevails but crowdfunding’s 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 & Entrepreneurship at 41.3% / $6.7bn
  • Social Causes 18.9% / $3.06bn
  • Films & Performing Arts 12.13% / $1.97bn
  • Real Estate 6.25% / $1.01bn
  • Music and Recording Arts 4.54%/ $736m

Further insights in the 2015 Crowdfunding Research Report include:

  • Historical comparison of crowdfunding’s growth 2011 through 2014
  • Breakdown of Regional funding volume by model and model by region
  • Top 11 performing crowdfunding categories
  • Average deal size for each crowdfunding model
  • Crowdfunding outlook trends: 15 major developments
  • CFP leaderboards worldwide, by region and by model
  • Growth in CFP numbers and worldwide distribution
  • Market predictions for 2015 by region and model

Research Methodology
The 2015 – Crowdfunding Industry Report is a research report that provides a unique and in-depth analysis of crowdfunding market size, composition, trends and composition. The Crowdfunding Industry Survey, to which Massolution received 463 high-quality responses, was conducted during late 2014 and early 2015 and resulted in the most comprehensive data collection on the worldwide crowdfunding market to date. Massolution has conducted significant follow-up research via other reliable channels to complete the profiling of the global crowdfunding industry.

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iFunding.co Launches RealEstate Crowdfunding Platform to Help Accredited Investors overcome the Volatility of REIT Investments

14 Aug

Real Estate Crowdfunding Platform Allows Individuals To Invest in Quality Real Estate Deals in New York

By Robert Hoskins

iFunding.co launches commercial real estate crowdfunding platform based in New York City.  To date, investors have pledged over $8MM towards the first projects to be listed on the platform this month, making it the one the largest real estate platforms in the US.  iFunding is geared for accredited investors and provides more than just another kind of investment option for their clients. They boast a fully online platform for making direct investments in real estate, allowing clients to review projects, fund investments and track them via computer, smartphone or iPad.

iFunding is a real estate investment platform that uses technology to make private real estate investing simple. Individual investors can select and make direct investments in pre-vetted institutional quality real estate assets directly on our website.

iFunding is a real estate investment platform that uses technology to make private real estate investing simple. Individual investors can select and make direct investments in pre-vetted institutional quality real estate assets directly on our website.

The electronic investment system claims to make iFunding a paper-free company. That’s right – all forms are digital. Investors will enjoy the convenience of iFunding’s state of the art technology while maintaining the ability to access institutional quality real estate investment opportunities for as little as $1,000.

The platform is geared toward accredited investors in the $1-5m range who lack access to private equity funds and may be frustrated with the volatility of REIT’s. The company focuses on assets that provide long term, stable income streams for their clients.

While truly online investing is reason enough to celebrate, there’s even more to embrace. iFunding has a team of professionals who have over 50 years’ experience in this field. They have worked with some of the largest corporations, such as JP Morgan Chase, Goldman Sachs, Deutsche Bank, and have been involved in over $2 Billion of transactions in numerous different roles. Their expertise and dedication in investing translates into professionalism and knowledge that is second to none.

William Skelley, founder of iFunding, shared in a recent interview that the idea for the company came to him from while working at the hedge fund Rose Park Advisors, a fund run by Harvard Business School professor Clayton Christensen, that focuses on making investments in companies that fit the framework of disruptive innovation. Mr. Skelley realized that real estate finance was a prime target to be disrupted, harnessing technology to simplify the investment process and make it extremely efficient.

Mr. Skelley had this to say about his company, “Our goal at iFunding is to utilize technology to streamline the process for our real estate investors. We prepackage everything to present the investor with a turnkey investment opportunity – we have in-house counsel, accountants and additional intellectual capital at no cost to the client. We do the legwork so our clients don’t have to. iFunding offers them the efficiency they want with the expertise and results they deserve.”

iFunding is a real estate investment platform that uses technology to make private real estate investing simple. Accredited investors can select and make direct investments in pre-vetted institutional quality real estate assets directly on their website.

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