GITNUX MARKETDATA REPORT 2024

The Most Surprising Crowdfunding Industry Statistics in 2024

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As our world becomes increasingly digitized, innovative financial models like crowdfunding are taking center stage, forever changing the way we support projects and causes we believe in. Crowdfunding, rooted in the collective efforts of individuals to pool resources towards a shared goal, is more than just a trend – it’s an ever-growing industry.

This blog post will delve into the most recent crowdfunding industry statistics. By shedding light on key trends, growth rates, market sizes, and much more, we’ll provide a detailed portrait of the crowdfunding landscape. Stay tuned to uncover the significant role this industry plays in our economy and how it could potentially shape the future of project funding.

The Latest Crowdfunding Industry Statistics Unveiled

The global crowdfunding market was valued at $13.93 billion in 2019.

Highlighting the remarkable value of $13.93 billion of the global crowdfunding market in 2019 serves as a testament to the potency and scale of this industry. This figure, in the sphere of Crowdfunding Industry Statistics, illustrates a vivid picture of the robustness of crowdfunding as a financial tool.

This stately valuation not only underscores the growth trajectory of the crowdfunding sector, but also affirms its integral role in finance and entrepreneurship worldwide. This figure invites us to consider the multitude of opportunities and challenges in the evolving landscape of crowdfunding, ultimately elevating the quality and depth of the discussion in the blog post.

North America has the highest crowdfunding volume, reaching $17.2 billion in 2018.

Drawing attention to North America’s commanding lead in crowdfunding volume, an impressive $17.2 billion in 2018, paints a robust picture of the region’s dynamic fundraising landscape. This numerical titan underscores the continent’s strong affinity for leveraging digital platforms to drive the growth of various projects.

As such, it acts as a powerful magnet pulling in entrepreneurs and investors searching for fertile ground in the crowdfunding industry. More than just a number, it’s a testament to a culture of innovation, risk-taking, and public backing that puts North America at the epicenter of this modern fundraising revolution.

On Kickstarter, one of the leading crowdfunding platforms, the success rate of fully funding a project is 37.44%.

When diving into the rich waters of crowdfunding platform, Kickstarter, we must bear in mind the compass of reality: only 37.44% of projects reach their full funding goals. This percentage is not just a number, but a reflection of the intense competition and rigorous selection process. It is a testament to the demanding nature of consumer discernment and the compelling need for innovation and originality.

In a market driven by novelty and viability, this statistic serves as a barometer for entrepreneurs, helping them gauge the level of dedication, planning, and creativity required to render a project successful. Thus, in the world of crowdfunding industry, this number is crucial; like a guiding star in the unforgiving seas of entrepreneurial ventures.

As of 2020, there were more than 1,153 crowdfunding platforms globally.

This global proliferation of over 1,153 crowdfunding platforms by 2020 throws light on the expanding worldwide reach of the crowdfunding industry. It underscores the growing popularity and acceptance of this alternative financing method among start-ups, entrepreneurial communities, and investors.

The statistic’s sheer magnitude marks a significant point in the narrative of crowdfunding, echoing its evolution from a niche concept to a mainstream resource. It also implies a diversified spectrum of opportunities and options for potential fundraisers, highlighting the industry’s broad gamut that is continuously enticing innovative ventures and ideas. This marked increase in crowdfunding platforms could also be indicative of the heightened competition and further progress in the industry.

Technology is the most funded industry in the crowdfunding sphere, with over $1 billion raised on Kickstarter alone.

The grand revelation that technology reigns supreme as the most funded industry in the crowdfunding landscape, particularly with a staggering $1 billion nest egg from Kickstarter, is a nugget of gold for readers keen on Crowdfunding Industry Statistics. It underscores the significant shift in societal and economic trends, accentuating our collective gravitation toward upcoming technologies. Venturing eyes can perceive the enormous potential for success when pairing innovative technology with the power of crowdsourcing.

From individual inventors to burgeoning startups, this statistic empowers them with valuable insight that an engaged community exists, ready to back their revolutionizing tech pursuits. It also importantly indicates the degree of trust and belief the public harbors for technological projects, making it a crucial consideration for those studying or involved in the Crowdfunding Industry.

In the US, over 6 million people have made a donation on a crowdfunding campaign.

Shining a light on the magnanimous participation of over 6 million people who have opened their wallets in support of crowdfunding campaigns underscores the formidable growth and influence of the crowdfunding industry in the US. This powerful number provides a benchmark to gauge the escalating inclination towards alternative fundraising methods that are reshaping the economic landscape.

Not just a testament to the generosity of donors but also an indication of the increasing faith in this non-traditional form of finance, the statistic speaks volumes about the potential and dynamism of the crowdfunding world. Delving deeper into this could uncover compelling insights for potential campaigners and investors to ride the wave of this game-changing trend in the fundraising sector.

As of 2022, the largest crowdfunding campaign ever was the Star Citizen video game project, raising over $300 million.

Highlighting the staggering accomplishment of the Star Citizen video game project, which amassed over $300 million, unequivocally demonstrates the immense potential of crowdfunding platforms.

It communicates a powerful message about not only the remarkable opportunities that exist for innovative ideas within the crowdfunding landscape, but also about the ability of these platforms to mobilize vast amounts of capital. This extraordinary case of crowdfunding success raises the benchmark, thus inviting new realms of possibilities for future entrepreneurs and innovators within the industry.

Design and technology campaigns account for almost half the total money pledged on Kickstarter, despite making up just 7% of all successful projects.

Peeling back the layers of the crowdfunding industry, one striking gem of data reveals a lopsided reality: Design and technology campaigns are the true financial behemoths of Kickstarter, raking in almost half of all total funds pledged. This heavyweight fact, notably contrasted by the slim 7% representation in successful project statistics, presents an intriguing paradox that has significant ramifications.

Firstly, it carves out design and technology as powerful, high-yield sectors within the crowdfunding industry. This disproportion between the project’s sheer number and their financial heft underscores the immense appeal and profitability of these sectors. Secondly, it illuminates the potential for high returns on investment in these areas, empowering potential backers to make informed, strategic decisions. Lastly, it argues compellingly for a sharper focus on design and technology from crowdfunding hopefuls. Tapping into these dynamic sectors with innovative, appealing projects can unlock the Pandora’s box of backing power.

In all, the incongruity of this statistic pivots the lens of our understanding, bringing the powerhouse status of design and the technology sectors within Kickstarter into sharp, irrefutable focus. This information potently alters perceptions, strategies, and even probabilities within the vibrant sphere of crowdfunding.

Reward-based crowdfunding is the most popular type of crowdfunding, generating over $6.4 billion in 2019.

Shining a spotlight on reward-based crowdfunding’s towering popularity, the monetary impact in 2019 alone reached a staggering $6.4 billion. This exhilarating figure underscored its dominance in the bustling crowdfunding industry. It speaks volumes about the vital role this type of crowdfunding plays in this field, guiding entrepreneurs, startups, investors, and interested parties in where the lion’s share of growth and interest is concentrated. It further acts as a beacon for future strategies, investment perspectives, and industry trends.

The success rate of campaigns on Indiegogo, another popular crowdfunding platform, is 17.1% as of 2020.

Delving into the allure of crowdfunding industry statistics, let’s spotlight the compelling figure of a 17.1% success rate for campaigns on Indiegogo in 2020. This vibrant gem of data paints a vivid picture of potential challenges and rewards for new competitors in this arena. It underscores the unmistakable reality that while crowdfunding presents immense possibilities, it’s not a walk in the park by any means.

Indeed, this significant statistic invites the reader to weigh the results against the odds, a stark reminder that great gains are typically accompanied by formidable risks and sometimes, high failure rates. A careful understanding, thus, of such statistics makes the difference between blindly plunging into the crowd-sourced funding world and navigating its waters with a well-calibrated compass.

An estimated 63% of crowdfunding campaigns are created by men.

The prevalence of male-driven crowdfunding campaigns, estimated to be 63%, is a telling revelation about the contours of the crowdfunding landscape. It paints a picture not just of who drives the crowdfunding wheels, but also potentially, who is more inclined to harness the power of the crowd for elevating ideas into real ventures.

This facet highlights an area of the industry ripe for examination and change extending the discourse to the realm of gender dynamics, the opportunities and barriers within the crowdfunding sphere. Therefore, this 63% stands not just as a number, but a launching pad to delve into the deeper sketch of the crowdfunding industry ecosystem.

On Kickstarter, the average donation per backer was $25 in 2020.

In the pulsating world of crowdfunding, where dreams translate into substantial financial support, figures such as the impressive $25 average donation per backer on Kickstarter in 2020 serve as a guiding beacon for aspiring entrepreneurs. This metric sets a benchmark, illuminating the potential generosity of backers, thus painting a promising monetary landscape for future projects.

It also underscores the discernible evolution of the crowdfunding industry, prompting a deeper exploration into funding habits, campaign strategies, and community engagement. Furthermore, it highlights the fertile ecosystem of Kickstarter, lending credibility to its platform and hinting at the robust confidence of its backers as they navigate through an array of creative ventures.

Conclusion

In the rapidly evolving world of crowdfunding, the trends and statistics we’ve detailed above clearly demonstrate the power and potential of this industry. Crowdfunding has not only become a revolutionary tool for entrepreneurs, startups, and nonprofits, it has offered unprecedented opportunities to innovators globally while giving investors the chance to contribute to nascent ideas that excite them.

Versatile and accessible, crowdfunding is revolutionizing the finance industry, one campaign at a time. Understanding industry statistics is crucial for anyone looking to leverage this powerful resource to establish, scale, or diversify. As we shift towards an increasingly digital and interconnected world, the importance of crowdfunding is only expected to grow, shaping the future of fundraising and investment.

References

0. – https://www.www.statista.com

1. – https://www.www.businessinsider.com

2. – https://www.www.ignitiondeck.com

3. – https://www.www.entrepreneur.com

4. – https://www.www.grandviewresearch.com

5. – https://www.artofthekickstart.com

6. – https://www.www.businessnewsdaily.com

7. – https://www.www.fundly.com

FAQs

What is Crowdfunding and how does it work?

Crowdfunding is a method of raising capital through collective efforts of friends, family, customers, and individual investors. It involves a large number of people contributing a relatively small amount each to help kick-start a new business or fund a new project. It is typically done online using crowdfunding platforms.

What are the different types of crowdfunding?

There are primarily four types of crowdfunding rewards-based, donation-based, equity crowdfunding, and debt crowdfunding. In rewards-based, donors receive a reward for their contribution. In donation-based, people donate to causes or projects without expecting a return. Equity crowdfunding involves contributors receiving shares or a stake in the company. In debt crowdfunding, contributors lend money for a promised return with interest.

What are some popular crowdfunding platforms?

Some of the popular and most successful crowdfunding platforms are Kickstarter, Indiegogo, GoFundMe, Crowdcube, and Patreon. These platforms cater to different kinds of funding needs and have different terms and conditions for fundraisers and supporters.

Why do people prefer crowdfunding over traditional funding?

Crowdfunding, apart from raising funds, also helps in validating a concept, creating a direct channel with customers, and serving as a marketing tool. It allows entrepreneurs with great ideas but limited funds to turn their ideas into reality. It is also preferred for its simplicity, accessibility, and ability to reach a global audience.

What are common challenges faced in crowdfunding?

Some common challenges include setting the right funding goal, offering attractive rewards or returns, creating a compelling pitch, gaining visibility amidst a sea of projects, and delivering the product or project as promised on time. It also requires substantial planning, ongoing effort, and promotional activities beyond just listing a project on a platform.

How we write our statistic reports:

We have not conducted any studies ourselves. Our article provides a summary of all the statistics and studies available at the time of writing. We are solely presenting a summary, not expressing our own opinion. We have collected all statistics within our internal database. In some cases, we use Artificial Intelligence for formulating the statistics. The articles are updated regularly.

See our Editorial Process.

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