The term Crowdinvesting, otherwise know as equity-based Crowdfunding defines a variety of transactions where an unspecified number of investors come together in order to invest in a well-defined purpose. The following segment exclusively considers equity-based Crowdfunding: investments in equity shares or profit-related returns for instanceroyalties or convertible loans. Crowdinvesting has become a popular financing option for start-ups and is considered part of venture capital financing.
Keyplayers in this market are EquityNet, CrowdCube and Seedrs.
Funding of start-up companies and SMEs by an unspecified number of investors in return for equity
Investments in equity shares or profit-related returns (e.g. royalties or convertible loans)
Crowdinvesting, also known as equity crowdfunding, continues to gain popularity as a means of fundraising for startups and small businesses. One current trend in the market is the rise of specialized crowdfunding platforms catering to specific industries or niches, such as renewable energy or real estate. Another trend is the growing use of blockchain technology to facilitate crowdinvesting transactions and increase transparency. The growth of the crowdinvesting market can be attributed to several factors. Firstly, it provides a new source of capital for startups and small businesses who may have difficulty accessing traditional funding. Secondly, it allows individuals to invest in companies and projects they believe in, democratizing the investment process. Finally, regulatory changes in many countries have made it easier for businesses to raise funds through crowdinvesting. The global crowdinvesting market is expected to have a positive growth in the coming years. Factors such as the increasing number of startups and small businesses, growing awareness of crowdinvesting, and the rise of specialized crowdfunding platforms as key drivers of market growth. Additionally, the COVID-19 pandemic has highlighted the need for alternative fundraising methods, which is expected to further boost the crowdinvesting market in the coming years.
The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.
Modeling approach / Market size:
Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.
The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.