![]() ![]() ![]() Crowdfunding StatisticsĪccording to the latest study by Absolute Reports dubbed, “Crowdfunding Market 2022, ” the global Crowdfunding market size is said to be worth USD 13340 million in 2021. Shortly thereafter, more crowdfunding platforms began to emerge, and the crowdfunding industry has grown consistently each year. Inspired by this innovative method of financing, ArtistShare became the first dedicated crowdfunding platform in 2000. The first recorded successful instance of crowdfunding occurred in 1997, when a British rock band funded their reunion tour through online donations from fans. In equity crowdfunding, the investor gets allotted equity shares of the investee company in return for the investment. However in countries like India, the RBI governs this entire mechanism to prevent possible fraud and ensure that all compliances are met. One of the biggest challenges surrounding crowdfunding is fraud, hence in most African countries, Crowdfunding is still under the rocks and has not been explored much. The investors provide the borrowers with unsecured loans at an interest rate set by the platform. In P2P lending, the crowdfunding platform matches the lenders/investors with borrowers. While community crowdfunding does not look at any tangible return on the investment made, both P2P lending and equity crowdfunding give investors an option for tangible returns. Read More: Hybrid Workplace // Ways to To Keep Your Company Culture Strong While community crowdfunding comprises donation crowdfunding and reward crowdfunding, crowdfunding for financial return comprises peer-to-peer lending (P2P lending) and equity crowdfunding. On the global front, the success of crowdfunded startups such as Oculus and Glowforge made people sit up and take notice of crowdfunding not merely as a means to support social causes but also to bring alive the dreams of startup founders that are hoping to solve important problems for a diverse set of customers.Ĭrowdfunding is broadly divided into two categories: community crowdfunding and crowdfunding for financial return. However, apart from social causes, crowdfunding has also become a popular source of raising money for startups over the last few years. ![]() Typically initiated by other organizations or people, crowdfunding is utilized in support of a broad array of activities, which include citizen journalism, disaster relief, political campaigns, support of artists by fans, start-up funding, free software or movie development, as well as scientific research. There is money to be made in the investment, but the idea that people networking and pooling their resources, typically through the web is astonishing. The crowdfunding collective is amazing in how it works. ![]() Most entrepreneurs are beginning to search into crowdfunding platforms to raise funds for their start-ups. Seed capital for start-up businesses is becoming increasingly challenging to locate. ![]()
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