The Global Crowdfunding Industry Raised $34.4 Billion In 2015, And Could Surpass VC In 2016 - Dazeinfo

There is a new ‘buzz’ going around in the investment
game—crowdfunding investment. Though crowdfunding is a relatively new
investment practice, existing businesses, individual, and startups are
increasingly looking to raise funds through this method. Let’s examine
some facts and figures to understand the crowdfunding sector has
progressed over the years: Juniper
suggests that the crowdfunding industry has seen an “accelerated
growth”, especially in the equity crowdfunding sector. According to Massolution crowdfunding report 2015,
the global crowdfunding industry grew immensely in 2014—expanded by
167% to reach $16.2 billion, up from $6.1 billion in 2013. The industry
has raised more than double once again and reached to $34.4 billion, in
2015.




Further, Massolution adds that the consistent growth in 2014 was due
to a spike in crowdfunding projects from Asia; the Asian crowdfunding
volumes grew by 320%, to $3.4 billion raised from various projects. This
puts Asia ahead of Europe with $3.26 billion as the second-largest
region by crowdfunding volume. North America took the lead position in
the world in terms of crowdfunding volumes, growing by 145% and raising a
total of $9.46 billion in 2014. Business and entrepreneurship were the most popular crowdfunding category, collecting $6.7 billion in 2014, adds Massolution.




Closing in on the equity crowdfunding sector, a Forbes analysis claims that venture capital averaged to roughly $30 billion per year; and in 2014 accounted for roughly $45 billion in investments, whereas angel capital averages
roughly $20 billion per year invested. Equity crowdfunding was opened
to the public in the U.S on September 2013, under the JOBS Act. But, it
was restricted to ‘accredited investors only’; even then there was a $1
billion investment made online through equity crowdfunding while 2015 is
estimated to have over $2.5 billion in total crowdfunded equity
investments.





The Global Crowdfunding Industry Raised $34.4 Billion In 2015, And Could Surpass VC In 2016 - Dazeinfo