Before we discuss the key crowdfunding statistics that will inspire, educate and amaze you, let’s look at the definition of crowdfunding and how crowdfunding works.
What is Crowdfunding?
Table of Contents
Crowdfunding is a method of raising finance by asking a large number of people each for a small amount of money majorly through the internet using an approved online platform.
Crowdfunding is a smart alternative to raise funds from the people around the world. Understanding how crowdfunding works will help you raise more funds.
If you truly want to get the best result in your crowdfunding campaign, consider creating a thought-provoking video campaign with the help of a reliable crowdfunding marketing agency. Take time to demonstrate in your video how the product you want them to back up financially works.
How much do crowdfunding marketing agencies charge? The due diligence fee for a typical crowdfunding marketing agency is around $1000 – $3,500 upfront, plus 20% to 35% of the amounts they raise. While this might look expensive, having a crowdfunding consultant working with you can help you reach your fundraising goal in less time.
10 Interesting Crowdfunding Statistics
- In 2019, the global crowdfunding market was valued at 13.9 billion U.S. dollars and was forecast to triple by 2026.
This is proof that setting up a crowdfunding platform is a viable business. If you’ve been considering building a startup in this direction and you have enough personal brand reputation to back it up then launching a crowdfunding platform will be a great idea.
If you are completely new with no social capital, then you may need to read this article to learn how to build your brand reputation.
- $17.2 billion is generated yearly through crowdfunding in North America.
North America happens to be the best continent on the forefront when it comes to raising funds through crowdfunding platforms. If you have a brilliant business idea but no funds to mass-produce it, you can easily bring it on on Kickstarter (with a mind-blowing offer, of course) and you will have people line up to support your vision.
- Funds raised through crowdfunding grew 33.7% last year.
This crowdfunding statistics goes to show that more people are beginning to trust fundraising platforms like never before. This is not unconnected to the introduction of Facebook fundraising feature.
ALSO READ:
- What to Consider When Choosing the Best Crowdlending Platform
- Why We Need to Teach Money and Budgeting Skills to Students
- 3 Successful Businesses That Came Back from the Brink (And Why You Can Too)
- Kickstarter that was founded in 2009 has now become one of the most prolific crowdfunding platforms worldwide.
As of November 2020, 504,804 projects have been launched on Kickstarter. Despite the bad eggs engaging in the worst set of crowdfunding scams on Kickstarter, the platform has continued to support intelligent startup founders in Europe and America to birth their dream.
- There were 6,455,080 worldwide crowdfunding campaigns last year.
Over 6 million crowdfunding campaigns with an average amount of $824 show that there’s continuous growth in this sector. Successful crowdfunding campaigns have raised $28,656 on average.
- Crowdfunding campaigns that updated followers regularly raised 126% more than those with no updates. 42% of funds are raised in the first and last three days of an average crowdfunding campaign.
If you truly want to experience massive success in your crowdfunding campaign irrespective of the platform you are using, you must develop the habit of using strategic content marketing to promote it across all social media platforms.
- Fundrazr projects have a 41.8% chance at success—the best chance of success of any platform. Indiegogo projects have raised an average of $41,634 each—the highest average amount of any platform in the whole world.
That does not mean that these are the only platforms where you can raise funds. You will need to do your research because some of them seem to have a specific industry that supporters there are more likely to finance.
ALSO READ:
- Everything You Should Know About Crowdlending
- 4 Best Alternatives to Bank Loans for Business Funding
- 4 Steps to Ensure Your Business is Legal
- Crowdfunding campaigns that raise at least 30% of their goal within their first week are more likely to reach their goal.
To reach this goal faster than you can ever imagine, you will need to get multiple Facebook, Twitter and email shares. This is because 53% of email shares of crowdfunding campaigns convert into donations while 12% and 3% of Facebook and Twitter shares respectively convert into donations.
These crowdfunding statistics are indications that getting successful social media influencers to back your crowdfunding campaigns can help you reach your goal faster.
- Crowdfunding campaigns with videos earn 105% more than those without videos.
Video campaigns will continue to perform better than any other advertising creative you can ever come up with when it comes to creating campaigns.
If you truly want to get the best result in your crowdfunding campaign, consider creating a thought-provoking video campaign. Take time to demonstrate in your video how the product you want them to back up financially works.
- Most successful crowdfunding campaigns take an average of 11 days to prepare and will last for a period of 9 weeks with at least 300 people backing them.
Setting unrealistic goals, failing to promote your crowdfunding campaigns and not getting enough backers are some of the key reasons why most crowdfunding campaigns fail. Well-funded crowdfunding projects have an average of 300 backers.
ALSO READ:
- On Selling Your Home to Fund Your Business
- 4 Important Factors to Consider Before Accessing a Business Loan
- Future and Emergency Planning: How Much Should You Have Saved in Your 30s?
