Crowdfunding platforms raised some
$2.7 billion in 2012 and are expected to raise $5.1 billion
this year, according to a report released this week by Massolution.
The crowdsourcing research and advisory firm, alongside
www.crowdsourcing.org, surveyed 362 of the 813 crowdfunding
platforms in operation.
North America remains the largest market for crowdfunding
and is expected to account for $3.6 billion of that raised in
2013, largely led by its dominant lending-based platforms.
Of the $2.6 billion raised last year, $1.6 billion was in
North America, $950 million in Europe, $76 million in Oceania
and $33 million in Asia. South American and African platforms
Donations-based and lending-based platforms are
driving growth in the crowdfunding market. Firms such as
Lending Club in the US and RateSetter in the UK source the
crowd to provide loans. Interestingly, 90% of applications are
Donations-based platforms, where rewards are offered for
donations such as Kickstarter and Indiegogo, make up just over
half of all funds raised. Pure donations-based campaigns have
about a 45% success rate of being funded and are largely
dependent on the number of social ties a campaigner has
such as the number of Facebook friends.
Rewards-based campaigns have a 50% chance of being
Equity-based platforms, whereby investments are made in
projects and companies in return for a stake, have been slow to
take off. In the US, this growth has been hampered by the delay
in implementation of
the Jobs Act, which allows for equity-based
Equity-based crowdfunding is not allowed in the US, Canada,
Mexico, Spain, Israel and Turkey. It is estimated that
equity-platforms raised just $115 million globally last year.
Their success in funding, however, is almost as high as
More than one million campaigns were launched last year
almost 70% of which were donations-based campaigns and
25% lending-based campaigns. In Europe, 470,000 campaigns were
hosted on platforms. In North America, 620,000 were hosted.
More information on the Massolution report is available on