Crowdfunding Market Expected To Hit A Valuation Of US$ 42.9 Billion During 2024–2032
The global crowdfunding market size reached US$ 16.5 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 42.9 Billion by 2032.
NEW YORK, BROOKLYN, UNITED STATES, April 15, 2024 /EINPresswire.com/ — IMARC Group’s report titled “Crowdfunding Market Report by Type (P2P Lending, Equity Investment, Hybrid, Reward-based, and Others), End Use (Entrepreneurship, Social Cause, Movies and Theater, Real Estate, Music, Technology, Publishing, and Others), and Region 2024–2032”. The global crowdfunding market size reached US$ 16.5 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 42.9 Billion by 2032, exhibiting a growth rate (CAGR) of 11.26% during 2024–2032.
Factors Affecting the Growth of the Crowdfunding Industry:
Technology Advancements:
The progress of technology, specifically in mobile apps and payment systems, has greatly simplified the process of engaging in crowdfunding campaigns. These advancements have made crowdfunding platforms more accessible to a wider audience, allowing users to easily discover, support, and track projects of interest from their devices. Additionally, new payment technologies are making financial transactions smoother, enabling backers to contribute to campaigns and creators to receive funds quickly and securely. This has attracted a more diverse group of participants and expanded the reach of crowdfunding platforms. Furthermore, the inclusion of social sharing options, real-time updates, and interactive communication tools have improved the overall user experience, creating a more involved and dynamic crowdfunding community.
Rising Trend of Equity Crowdfunding:
Equity crowdfunding is becoming a popular choice for startups and small businesses in need of funding, moving away from conventional methods like bank loans or venture capital. It allows regular individuals to invest in young companies and receive equity shares in return, potentially leading to significant profits if the business succeeds. The increasing enthusiasm for this type of crowdfunding is backed by changing regulations globally, which are adapting to accommodate equity crowdfunding while also safeguarding investors. These regulatory changes play a crucial role in legitimizing the process, drawing in more experienced investors, and promoting stability and expansion within the market.
Growing Remote Collaboration and Global Reach:
The COVID-19 pandemic’s abrupt arrival has highlighted the significance of remote collaboration tools and the unique power of crowdfunding to connect project creators with a global audience of supporters. The pandemic-driven shift towards digital interaction is proving crucial for crowdfunding campaigns, allowing them to utilize virtual events, online marketing, and digital communities to engage potential backers worldwide. This trend not only benefits fundraising efforts but also boosts project visibility and market validation. Moreover, tapping into a global network of supporters offers valuable market insights, encourages diverse community engagement, and provides a platform for broad exposure — all essential elements for successful crowdfunding campaigns.
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