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Crowdfunding Market Grew 81% in 2012, Finds massolution Industry Report
editorial

Crowdfunding Market Grew 81% in 2012, Finds massolution Industry Report

Editor's Note: We continue our look at the leading industry research and advisory work that our sister organization massolution is engaged in. Today we look at a very significant piece of research, massolution's Crowdfunding Industry Report, which builds upon the first such study of its kind from last year. For more information on massolution and its industry research, go to crowdsourcing.org/research; for services, visit massolution.com

Over a million crowdfunding campaigns raised $2.7 billion in 2012, and the market is expected to nearly double again this year, according to a comprehensive global crowdfunding industry report released today by massolution.

The study was based on data collected from 308 active crowdfunding platforms (CFPs) worldwide and further research done by a team of academics and analysts from around the world. It reveals an 81% increase over 2011 in funds raised on CFPs, resulting in the successful funding of more than one million campaigns. North America and Europe account for over 95% of the total market, according to the report.

“Consistent with our 2012 forecast, total crowdfunding volume nearly doubled last year, and with regulatory bodies continuing to pave the way, we expect global crowdfunding volumes to exceed $5 billion in 2013,” said CEO of massolution and Crowdsourcing.org, Carl Esposti. “While lending-, donation-, and reward-based crowdfunding have thus far been leading this global financial revolution, equity-based crowdfunding is about to take center stage in the U.S. The JOBS Act, which will allow non-accredited investors to make investments in exchange for equity, is expected to go into effect by the end of 2013.”

Among the many notable findings in the report is the strong growth of crowdfunding across regions, with 105% growth (to $1.6 billion raised) in North America, 65% higher volume in Europe ($945 million) and collective growth of 125% across other markets.

Lending-based crowdfunding grew 111% to $1.2 billion, while donation and rewards-based platforms including Kickstarter and Indiegogo grew 85% to $1.4 billion. Equity-based crowdfunding grew 30% to $116 million.

“Obtaining reliable and analyzable data on all aspects regarding new constituents- and market-related activity will be critical to the creation of the new crowdfunding industry,” said EGS Managing Partner, Douglas Ellenoff. “This includes more research on funding platforms, deals, investors, amounts being raised, actually raised, industries, and geographies. For the last several years, massolution has committed itself to developing these necessary capabilities, relationships and infrastructure to be the best positioned and most reliable market leader for this purpose."

You can purchase a licensed copy of the report or obtain an excerpt from the report by clicking here. Broad distribution of the report was made possible by Founding Research Sponsor EG&S.

Journalists interested in a copy of the report can contact Jennifer Moebius at jennifer@crowdsourcing.org.

Disclosure: massolution also operates the industry website Crowdsourcing.org.

You can reach a representative at massolution by emailing contact-at-crowdsourcing.org.

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