The global crowdfunding market is expected to grow at a compound annual rate of 16% between 2020 and 2025. It is projected to increase from $1.41 billion in 2023 to $3.62 billion by 2030. In 2023, the average funding per campaign is around $7,260. This amount is projected to reach $8,730 by 2027. The United States accounts for 42% of the global crowdfunding market. Integration of technologies like artificial intelligence and blockchain into crowdfunding platforms is expected to provide growth opportunities. However, lack of awareness about crowdfunding may hamper growth. The European market is also expected to expand due to increasing regulations across countries regarding crowdfunding platforms. According to reports, rules are being planned to allow European platforms to operate in other EU regions. Turkey is experiencing significant crowdfunding growth with stable employment generating over $331 billion for its economy. In the ever-changing financial landscape, niche crowdfunding platforms are emerging alongside giants like Kickstarter and Indiegogo. Specialized platforms are carving out space in the industry.
Managing a successful campaign takes clear goals. You need a transparent community voting perspective. This is the strength of web3. It provides full transparency of criteria and costs. Changes are coming that will revolutionize the industry. It continues to transform fundraising without loans or investors. Its market value increases daily.
Good ideas will incubate through crowdfunding. Specialized operators will serve particular segments. They will have expertise and credibility. Corporations will incorporate the process and monetize it. Transactions can happen globally with custom marketplaces facilitating secure sales of rights to future rewards. This generates revenue for projects. Crowdfunding has overtaken other fundraising methods, enabling avoidance of banks. The market potential by 2025 is $90-96 billion per year. Factors boosting growth include investing in startups. The future could complement banking or create a pricing war.
GoFundMe charges some of the highest fees – 2.9% processing, $0.30 per donation, and 5% of the total. Kickstarter charges 5% plus 3-5% processing. Indiegogo carries some donations but is better known for finished products. Given the benefits, crowdfunding will continue early-stage investing, which appeals to younger investors who like impact investing and aligning with their values.