Key Crowdfunding Statistics
The crowdfunding industry is projected to grow to over $300 billion by 2025.
191 – Number of U.S.-based crowdfunding platforms
There are crowdfunding platforms for every type of cause, project, event, and situation.
270,000 – The number of jobs that crowdfunding has created
Countless businesses have been started thanks to the power of crowdfunding.
- Average successful crowdfunding campaign is around $7,000
- Average campaign lasts around 9 weeks
- Campaigns that can gain 30% of their goal within the first week are more likely to succeed
Marketing Drives Raises
- There is a direct correlation between the number of outside links to a crowdfund and the success of the fundraise.
- Social Media is a critical factor in crowdfunding success: for every order of magnitude increase in Facebook friends (10, 100, 1000), the probability of success increases drastically (from 9%-, 20%, to 40%)
Demographics of the Crowd
In mid-2012, the American Dream Composite Index surveyed a sample of the U.S. population to establish demographics for general crowdfunding participants.
- Age. Individuals ages 24-35 are much more likely to participate in crowdfunding campaigns; those over 45 are significantly less likely to back campaigns
- Gender. Men are much more likely to take a risk on an unknown startup
- Income. Those earning over $100,000 per year are the most likely to invest in startups through crowdfunding
Crowdfunding Revenue by Region
$7,000 – How much the average successful crowdfunding campaign raises
11 days – How long the most successful campaigns take to prepare
9 weeks – Duration of an average crowdfunding campaign
$88 – Average crowdfunding campaign donation
Crowdfunding statistics for effective promotion and communication
300 – 500 – The average word count in the campaign description for projects that raise the most money.
3X – How much more campaign owners raise if they update supporters every 5 days.
53% – The amount of email shares that convert into donations
12% – The amount of Facebook shares that convert into donations
- P2P Lending $25B
- Reward and Donation Crowdfunding: $5.5B
- Equity Crowdfunding $2.5B
P2P/Marketplace Lending as a form of crowdfunding really inflates these statistics, as it consists of 71% of the total, and most companies in the P2P/Marketplace Lending space would not call themselves crowdfunding. Though even without P2P included, $10Billion is still an impressive figure.
Real Estate Crowdfunding Set to Be $2.5 Billion Industry in 2015.
- Real estate crowdfunding grew 156 percent in 2014, just breaking the $1 billion mark, with campaigns ranging in size from less than $100,000 to over $25 million.
- In 2014, North America stood as the largest region by funding volume at 56 percent market share, compared with Europe at 42 percent.
- By 2015, Massolution forecasts that North America will retain its lead, reaching $1.4 billion in funding volume, but Europe will have just broken the $1 billion threshold.
- Overall, real estate crowdfunding is expected to increase by 150 percent, equaling $2.57 billion in 2015, making it one of the fastest-growing industry segments of crowd capitalism.
- This year, U.S. commercial and industrial property crowdfunding expects to see a 250 percent increase.
- Growing investor interest in crowdfunding platforms is proving crowdfunding to be a legitimate source of funds as compared to traditional banking.
— The End —