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 successfully funded.
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 crowdfunding.
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 donation-based campaigns.
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.