Global Crowdfunding to Raise $5.1 Billion in 2013

566px-Gold_Currency_Symbols.svgCrowdfunding is currently enjoying an unprecedented accelerated growth phase, and exerting a powerful impact on enterprise innovation, government policies, and financial institutions.

According to research firm Massolution’s annual 2013CF – Crowdfunding Industry Report, crowdfunding platforms raised $2.7 billion in 2012.  That represented an 81% increase over 2011 and more than one million campaigns were successfully funded.

Massolution specializes in crowdsourcing and crowdfunding industries and collected data from 308 active crowdfunding platforms (CFPs) worldwide as well as undertaking further research.  It expects financing by crowdfunding to maintain its upward trajectory:

“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, 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.”

Other headline figures from the annual report are as follows:

Key Findings by Region

• North America: crowdfunding volumes grew 105% to $1.6 billion
• Europe: crowdfunding volumes grew 65% to $945 million

Key Findings by Model

• Donation- and Reward-based crowdfunding grew 85% to $1.4 billion
• Lending-based crowdfunding grew 111% to $1.2 billion
• Equity-based crowdfunding grew 30% to $116 million

You can read an excerpt and/or buy a licensed copy of the report here.

Analysis of the report can be read in this guest Forbes blog post by David Drake, founder and chairman of LDJ Capital, a New York City private-equity firm.

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