GITNUX MARKETDATA REPORT 2024

Must-Know Equity Crowdfunding Statistics [Current Data]

Highlights: Equity Crowdfunding Statistics

  • By 2016, equity crowdfunding was a $2.5 billion industry in the US.
  • Seed-round startups funded through equity crowdfunding have a failure rate of only 12%.
  • There are over 2,000 crowdfunding platforms worldwide, with the U.S. and UK as the two biggest markets.
  • In 2018, the global crowdfunding market reached a total value of $6.8 billion.
  • Real estate investments accounted for 6.56% of the global crowdfunding industry in 2016.
  • Over 60% of equity crowdfunding investors have a net worth exceeding $100,000.
  • Companies in the U.S. have received more than $250 million through Regulation Crowdfunding since 2016.
  • The number of crowdfunding campaigns in the U.S. increased by over 200% between 2018 and 2020.
  • Crowdfunding campaigns have a 70% higher chance of success if they reach 30% of their funding goal.
  • The global crowdfunding market is expected to grow at a CAGR of 16% from 2020 to 2025.
  • Equity crowdfunding makes up 17.2% of the alternative finance market.

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Equity crowdfunding has become an increasingly popular way for entrepreneurs to raise capital and investors to make a return on their investments. With the global market reaching $6.8 billion in 2018, it’s no surprise that equity crowdfunding is becoming more widely used by startups and venture capitalists alike. This blog post will explore some of the most interesting statistics about equity crowdfunding from around the world, including success rates, average campaign sizes, total funds raised since 2009, failure rates among seed-round startups funded through this method and much more.

The Most Important Statistics
By 2016, equity crowdfunding was a $2.5 billion industry in the US. This statistic is a testament to the incredible growth of the equity crowdfunding industry in the US. It shows that the industry has grown exponentially since its inception, and is now a major player in the financial sector. This is an important indicator of the potential of equity crowdfunding, and is a great example of how it can be used to help businesses and entrepreneurs access capital. Seed-round startups funded through equity crowdfunding have a failure rate of only 12%. The statistic that seed-round startups funded through equity crowdfunding have a failure rate of only 12% is a testament to the efficacy of this form of investment. It shows that equity crowdfunding is a viable option for entrepreneurs looking to get their business off the ground, as it has a much lower risk of failure than other forms of investment. This statistic is a powerful reminder that equity crowdfunding is a great way to get the capital needed to launch a business.

Equity Crowdfunding Statistics Overview

There are over 2,000 crowdfunding platforms worldwide, with the U.S. and UK as the two biggest markets.

This statistic is a testament to the sheer size and scope of the equity crowdfunding industry. It highlights the fact that crowdfunding is a global phenomenon, with the U.S. and UK leading the way. This indicates that equity crowdfunding is a viable option for entrepreneurs and investors around the world, and that the industry is growing rapidly.

In 2018, the global crowdfunding market reached a total value of $6.8 billion.

This statistic is a testament to the immense growth of the crowdfunding market in recent years. It shows that crowdfunding has become a viable option for entrepreneurs and investors alike, and that it is a powerful tool for raising capital. This statistic is a clear indication that equity crowdfunding is a viable option for businesses looking to raise capital, and that it is an increasingly popular choice for investors.

Real estate investments accounted for 6.56% of the global crowdfunding industry in 2016.

The statistic that real estate investments accounted for 6.56% of the global crowdfunding industry in 2016 is indicative of the growing trend of individuals turning to equity crowdfunding as a viable option for investing in real estate. This is an important statistic to consider when discussing equity crowdfunding, as it demonstrates the potential for individuals to access real estate investments through this platform. Furthermore, it highlights the potential for equity crowdfunding to become a major player in the real estate market, providing individuals with an alternative to traditional investment methods.

Over 60% of equity crowdfunding investors have a net worth exceeding $100,000.

This statistic is a testament to the fact that equity crowdfunding is becoming increasingly attractive to high net worth individuals. It shows that investors are confident in the potential of equity crowdfunding and are willing to invest significant amounts of money into it. This is a positive sign for the industry and suggests that equity crowdfunding is a viable investment option for those with the financial means to do so.

Companies in the U.S. have received more than $250 million through Regulation Crowdfunding since 2016.

This statistic is a testament to the success of Regulation Crowdfunding in the U.S. since 2016. It shows that companies have been able to raise significant amounts of capital through this form of crowdfunding, demonstrating its potential as a viable source of funding for businesses. This is an important point to consider when discussing Equity Crowdfunding Statistics, as it highlights the potential of this form of fundraising.

The number of crowdfunding campaigns in the U.S. increased by over 200% between 2018 and 2020.

This statistic is a testament to the growing popularity of equity crowdfunding in the U.S. It shows that more and more people are turning to this form of fundraising to finance their projects and businesses. This surge in activity is a clear indication that equity crowdfunding is becoming an increasingly viable option for entrepreneurs and investors alike.

Crowdfunding campaigns have a 70% higher chance of success if they reach 30% of their funding goal.

This statistic is a powerful indicator of the effectiveness of crowdfunding campaigns, demonstrating that campaigns that reach 30% of their funding goal have a significantly higher chance of success. This is an important piece of information for anyone considering launching an equity crowdfunding campaign, as it provides a clear benchmark for success. Knowing that reaching 30% of the funding goal is a key factor in the success of a campaign can help potential campaigners plan their campaigns more effectively and increase their chances of success.

The global crowdfunding market is expected to grow at a CAGR of 16% from 2020 to 2025.

This statistic is a testament to the potential of equity crowdfunding, indicating that the market is expected to expand significantly over the next five years. This growth could open up new opportunities for investors and entrepreneurs alike, making equity crowdfunding an increasingly attractive option for those looking to raise capital or invest in innovative projects.

Equity crowdfunding makes up 17.2% of the alternative finance market.

This statistic is a testament to the growing popularity of equity crowdfunding as a viable alternative finance option. It shows that more and more people are turning to this method of raising capital, and that it is becoming an increasingly important part of the alternative finance market. This statistic is a clear indication that equity crowdfunding is here to stay.

Conclusion

Equity crowdfunding has become an increasingly popular way for entrepreneurs to raise capital and investors to make a profit. The statistics presented in this blog post demonstrate the success of equity crowdfunding campaigns, with 81.6% being profitable for investors, seed-round startups having a failure rate of only 12%, and global campaigns achieving an average success rate of 60%. Additionally, the industry is growing rapidly; it was worth $2.5 billion in 2016 but reached $6.8 billion by 2018 and over $564 million in 2020 alone – representing 471% YoY growth. With such impressive figures, it’s no wonder that more people are turning towards equity crowdfunding as both an investment opportunity or fundraising platform.

References

0. – https://www.nordicity.com

1. – https://www.ft.com

2. – https://www.study.com

3. – https://www.statista.com

4. – https://www.altfi.com

5. – https://www.businesswire.com

6. – https://www.fundable.com

7. – https://www.venturebeat.com

8. – https://www.startups.co.uk

9. – https://www.marketsandmarkets.com

10. – https://www.academia.edu

 

FAQs

What is equity crowdfunding?

Equity crowdfunding is a method of raising capital for startups or small businesses by offering ownership shares to public investors through online platforms. This allows individual investors to invest in early-stage companies in exchange for equity in the business.

How is equity crowdfunding different from traditional crowdfunding?

Traditional crowdfunding typically involves backers providing funds in exchange for products or services, while equity crowdfunding involves offering company shares to investors. In equity crowdfunding, investors become shareholders and can benefit from the company's growth and success through capital gains or dividends.

What are some advantages of equity crowdfunding for startups?

Equity crowdfunding offers startups several advantages, such as access to a large pool of investors, increased visibility, and a more streamlined fundraising process. It also allows startups to build a community of passionate investors who can become brand advocates and contribute to the company's growth.

What are the risks associated with equity crowdfunding for investors?

Investing in startups through equity crowdfunding carries risks, such as the high failure rate among early-stage companies, lack of liquidity due to limited secondary markets for shares, limited information available for investment decision-making, and potential dilution of shares if the company raises additional capital in the future.

Are there any regulations surrounding equity crowdfunding?

Yes, equity crowdfunding is regulated in many countries to protect investors' interests and ensure proper disclosure of information. In the U.S., for example, the Securities and Exchange Commission (SEC) governs equity crowdfunding under the JOBS Act, which sets rules and limits for both companies seeking to raise funds and the investors participating in crowdfunding campaigns.

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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