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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.”

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Lend Academy and NowStreet Media to Host LendIt Peer-to-Peer Lending Conference in New York

7 Apr

By Robert Hoskins

Lend Academy, the preeminent resource for the P2P lending industry, and NowStreet Media, producer of acclaimed financial events that highlight Wall Street transformations, are pleased to announce LendIt, the first global conference for the burgeoning P2P and online lending industry. Peer-to-Peer and online lending (collectively, “online lending”) is a relatively new asset class that is rapidly revolutionizing the credit markets and transforming the global banking industry.

Industry Influencers Introduce LendIt, the Inaugural Peer-to-Peer (P2P) & Online Lending Conference

Industry Influencers Introduce LendIt, the Inaugural Peer-to-Peer (P2P) & Online Lending Conference

Online lending seeks to exploit the structural mispricing and funding inefficiencies in the traditional banking sector. Through the use of technology, online lenders are able to compress the cost of originating, servicing, and funding traditional loans. As a result, borrowers receive a lower interest rate while lenders receive a very attractive rate of return. Online lending marketplaces have emerged globally for personal loans, student loans and small business loans. With interest rates at all-time lows and big banks hording cash, online lending marketplaces have tapped into a variety of investor sources ranging from large pension funds all the way down to self-directed individual investors.

LendIt is being held at the prestigious Convene Innovation Center in Manhattan on Thursday, June 20, 2013. The day will bring together the industry’s most influential leaders including: Renaud Laplanche, Lending Club‘s CEO, the largest peer-to-peer lending company as well as Ron Suber, Head of Global Institutional Sales for Prosper Marketplace, the nation’s second largest. Combined, these companies have already originated more than $2 billion in loans.

In addition to a powerful lineup of keynote presentations, interactive panels discussions and extensive networking, the event will feature the world’s first exhibit of peer-to-peer and peer-to-business lending portals.

Attendees will include institutional investors, private wealth managers, family offices and individual investors. Admission tickets can be obtained directly at http://lendit2013.eventbrite.com/. Complimentary press passes will be provided to pre-approved journalists and editorial staff.

Peter Rention,  Lend Academy’s CEO said, “There has never been a more opportune time to launch the LendIt Conference. The recent rapid growth of online lending has captured the attention of large and small investors alike. We look forward to introducing the investing community to the leading online lending platforms, the providers serving the sector as well as the Wall Street firms that are providing innovative financing structures and capital to this new asset class.”

“It is an enormous privilege to be working with Peter whose work is so highly regarded within the P2P industry. I am thrilled to have the opportunity to, once again, break new ground in the Wall Street convention space with the launch of another cutting-edge industry conference,” stated Dara Albright, NowStreet’s CEO.

Front Page PR offers SBA Free Crowdfunding Consulting Service

25 Jan

Helps Setup Training Programs to Teach Startups How to Raise Money on Crowdfunding Kickstarter, Indiegogo and RocketHub Sites

By Robert Hoskins, Front Page PR

Front Page PR announces a free Crowdfunding consulting service for any Small Business Administration (SBA) office nationwide that wants to learn how to start a Crowdfunding training program to teach local businesses how to raise money from people in the crowd who like their business ideas and want to donate money to help them get their business off the ground.

The SBA helps direct small businesses to 7(a) Loans, Short-term Microloans, Export Loans, Rural Business Loans and 504 Loans that offer small business financing, but in many cases, startups with no track record and few assets fail to qualify for bank loans.

Crowdfunding campaigns can serve as a very useful tool when small businesses have tried everything and have zero options left. Crowdfunding also serves as more than just a finance tool. It affords small business owners a chance to build a crowdfunding profile for their products /services to see if there is a real market demand instead of investing everything they have and hoping that it works.

Small towns are great places for Crowdfunding new businesses because everyone knows everyone. Once people fund a new business they like they can also help make it successful on a local basis because everyone has already indicated they want to buy its inventory.

One resource the firm offers SBA administrators is the Crowdfunding Press Center (https://crowdfundingpr.wordpress.com), which provides a repository of useful Crowdfunding news articles, case studies, research reports and white papers that local SBA advisors and counselors can read to increase their knowledge of Crowdfunding and learn how it can be leveraged to turn brilliant ideas into new businesses that create local jobs.

Once people have attended an SBA training program and have decided to launch a Crowdfunding campaign, Front Page PR offers a low-priced, two-hour Crowdfunding consulting service to teach new entrants how to leverage PR and social media to maximize their fundraising success for only $999.

Contact:
Robert Hoskins
Front Page PR
www.frontpagepr.com
East Coast: (512) 627-6622
West Coast: (602) 326-0940

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