Essential Crowdfunding Statistics [2023 Edition]
Crowdfunding is one of the most effective ways companies raise money to finance projects and businesses. Businesses, entrepreneurs, and creators gain new customers and market insights through online communities. Crowdfunding generates $17.2 billion annually in North America alone. Crowdfunding statistics and facts that outline its worldwide influence and impact are essential.
From innovative startups to financing groundbreaking ideas, Crowdfunding is changing the narrative of how we create and execute endeavors across many sectors. The article highlights recent information on crowdfunding statistics in the industry and the opportunities available to entrepreneurs, businesses, and individual creators. Let’s proceed.
General Statistics
1. In 2020, Equity Crowdfunding Generated Over $239 Million.
The Securities and Exchange Commission opened equity crowdfunding to investors in 2016. The volume of money raised has increased over time. In 2020, the United States raised $239.4 million through Crowdfunding, an increase of 77% from what was realized in 2019.
(Source: Crowdfund Insider)
2. The Value of Crowdfunding Globally Exceeds $1 Billion a Year.
The United States is the largest crowdfunding source, with over $500 million in equity and reward-based crowdfunding. Crowdfunding is predicted to expand at a rate of more than 2% each year over the next five years, reaching $1.2 billion by 2025.
(Source: Statista)
3. Companies Can Now Raise $5 Million Yearly.
New rules were enacted in March 2021, allowing businesses to raise $5 million in equity crowdfunding annually. This represents a 194% increase in possible funding over $1.07 million. The new legislative framework is predicted to boost the number of investors to 800,000 and increase crowdfunding by 40%. It assists startups in raising $1.2 billion in their first year.
(Source: Business Wire)
4. Common Stock is the Most Commonly Used Crowdfunded Security.
The most commonly utilized stock in equity crowdfunding is common stock. It indicates ownership in a corporation, and holders have the right to vote on director elections and corporate actions. When the company performs well, they have the right to a portion of the profits.
(Source: Start Engine)
5. WeFunder is the Largest Equity Crowdfunding Platform in Terms of Users and Dollars.
Numerous crowdfunding platforms are accessible via which investors and businesses can obtain cash. Each site has its own set of laws and regulations and a varied audience. WeFunder had the most significant equity investment of $70.9 million in 2020 and ranked first with 1,000,000 users.
(Source: Crowd Wise)
6. Food and Beverage Leads in Equity Crowdfunding.
Food and beverage is the industry with the most equity capital. Beverage and restaurant companies receive capital from various sources and share investments.
(Source: Start Engine)
7. Kickstarter has Over 22 Million Contributors.
From July 2014 to May 2023, the number of Kickstarter projects has steadily increased. Over 22 million individuals supported over 592,000 projects on Kickstarter in May 2023. Furthermore, over 7.56 million people had contributed to at least one project on the site.
(Source: Rest Finance)
8. In 2014, Tech Projects Raised More Than $1 Million in Funding.
Tech projects from 2014 raised an average of more than $1 million in funding. Over $13 billion has been spent in the technological sector. Despite this analysis, only 18% of technology crowdfunding initiatives have succeeded.
(Source: Crowdfunding Center)
9. The Average Project Successful on Kickstarter Raises About $100,000.
The highest average pledge of successful technology fundraisers on Kickstarter is $97,911.2. Only 21.4% of the about 48,000 technological projects were successful. This is the lowest record success rate in Kickstarter categories.
(Source: European Commission)
10. Games and Technology Make Up Two-thirds of Kickstarter’s $1 Million Campaigns.
Games and technology account for 400 out of the 600 projects on Kickstarter, with a minimum of $1 million in campaigns. Design projects take third place with over 150 successful projects of at least one million dollars or more.
(Source: Crowd Wise)
11. Crowdfunding Projects Achieve Less Than 25% of Their Goals.
Many initiatives have been introduced on crowdfunding platforms, but only 23.3% of these projects have met their goals. Comics and graphic novels are the most successful at 57.2%, gaming at 52.9%, and charities at 48.4%.
(Source: Crowdfunding Center)
12. $295 is the Average Crowdfunding Pledge.
The average pledge in Crowdfunding is $295 across all platforms. Kickstarter has an average commitment of $81, and GoFundMe has a $66 average deposit. Regardless of sources, there are 332 backers for an average successful project.
(Source: Crowdfunding Center)
13. Women Run 47% of Indiegogo Ad Campaigns.
Women own 20% of all companies in the United States. The rate of women in technology keeps increasing. Researchers uncovered that women oversee nearly half of successful Indiegogo campaigns.
14. Using Videos on Campaigns Increases Fundraising.
Including video while conducting a campaign can increase fundraising by an average of 105%. Videos provide the needed information to prospective contributors on who you are, the purpose of funding, the type of business you are involved with, and the benefit of your contribution to fulfilling your goal. Email marketing is an excellent way of communicating with your target audience. It enables you to retain existing contributors and gain new ones by including personalized, relevant, and valuable content.
(Source: Blog Fundly)
15. Most Successful Campaigns Use 11 Days in Preparation.
Carrying adequate research before starting a campaign is very important. A successful campaign involves a good marketing campaign and seeking an efficient support system. An average of 11 days is spent planning a successful campaign.
(Source: Statista)
Read the full article: https://techreport.com/statistics/finance-marketing/crowdfunding-statistics/
