Crowdfunding Statistics

Crowdfunding Stats.pdf

Key Crowdfunding Statistics

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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.

$65 billion – How much crowdfunding has added to the global economy
Crowdfunding campaigns have allowed people all around the world to raise a lot of money for causes they care about.
50% – Global average success rate for crowdfunding campaigns
While not every campaign is successful, many crowdfunding owners reach or surpass their goals!
Smaller Goals are More Attainable
  • 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

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  • 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

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$17.2 billion  – North American Crowdfunding Revenue
$10.54 billion – Asian Crowdfunding Revenue
$6.48 billion – European Crowdfunding Revenue
$85.74 million – South American Crowdfunding Revenue
$68.8 million – Oceanic Crowdfunding Revenue
$24.16 million – African Crowdfunding Revenue
Crowdfunding Success

$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.

4 – The average number of updates that a successful campaign owner posts.
126% – How much more crowdfunding campaigns raise when owners update supporters.
105% – How much more crowdfunding campaigns with personal videos raise than those that don’t have videos.

53% – The amount of email shares that convert into donations

12% – The amount of Facebook shares that convert into donations

3% – The amount of Twitter shares that convert into donations
Total Global Crowdfunding Industry estimated fundraising volume by 2015:

Breakdown:

  • 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.

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