Tag Archives: Royalty-based

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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Georgia Jane Fanvestors Earn 5% ROI Via Crowdfunding Platform YourMusicCompany’s Royalty Payments for New Hip Hop Music Album

11 Nov

Your Music Company is the first-ever, state-licensed crowdfunding music business model in the United States that pays fans royalties as a reward for crowdfunding their album production

By Robert Hoskins

Los Angeles, CA –  For the first time ever on U.S. soil, “fanvestors” will earn royalties from their investment in French artist Georgia Jane’s music crowdfunding campaign listed on Your Music Company (YMC). Those who supported Georgia Jane will collectively receive 5% of their total investment in the form of a check or an account credit on YMC’s website.

Georgia Jane Do the Same for Me Raises $100,000 via Crowdfunding Platform Your Music Company

Georgia Jane Do the Same for Me Raises $100,000 via Crowdfunding Platform Your Music Company

Primed to turn the music industry and U.S. based crowdfunding upside down with their unique approach, YMC is the first state-licensed music platform to employ the crowdsourcing model and allow fans an opportunity like no other — to support their favorite independent musicians on YMC’s website and profit-share in the sale of the artists’ online music downloads rather than receive prize incentives, as most fundraising sites generally operate. Though this business model is still in its infancy in the U.S., a similar site exists in Europe and has helped fund the careers of successful artists overseas.

“We are excited to share this success with Georgia’s fanvestors,” said Christel Gidouin, co-founder of YMC. “Their continued support is vital to the success of this platform and we look forward to launching the careers of talented musicians in America.”

Independent pop songstress Georgia Jane is the company’s first major success, with her campaign reaching its intended goal of $100,000. From her initial funding, Georgia was able to record her debut single, “Do The Same For Me,” and will use the remaining funds to produce her full-length album. Thanks to Georgia’s fanvestors, her single placed #93 on Mediabase’s Top 40 Pop chart and reached #5 on their Top 40 Pop Independent Label/Artist chart. Additionally, her single hit #40 on the BDS Top 40 Indicator Chart.

Fanvestors, or fan investors, collectively split 25% of all net profits from album and single sales. Using social media as the basis for promotion, fanvestors have the opportunity to support and share the music they like and receive royalties, while the artist raises the funds they estimate to record an album. If the campaign goal is not reached, fanvestors receive their initial investment back.

In 2011, renowned French singer/songwriter Yael Benamour teamed up with COO Christel Gidouin to bring their updated platform to the American market, selling off all of their possessions and moving to Los Angeles before receiving approval of their U.S. visas. Armed only with a business plan and their plane tickets, the two female entrepreneurs raised $1.2m in seed funding and opened an office in Century City, where they maintain their hands-on approach to developing the careers of each of YMC’s successfully funded artists.

This revolutionary platform allows fans worldwide to select an artist from the record label’s roster and invest in him/her. The music fan, referred to as “FANVESTOR,” will in turn receive royalties from the artist’s album and single sales. Your Music Company is continuing their worldwide growth in over 100 countries.

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