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Report on How AI is Driving Market Transformation 
The Crowdfunding market size is forecast to increase by USD 310.07 billion at a CAGR of 14.94% between 2023 and 2028. Several factors play a crucial role in the market's growth, such as the increasing use of social media as a source of free-of-cost promotion, easy access to capital in comparison with traditional funding, and increasing customer base in terms of investors. Furthermore, the market is experiencing an increase in demand for innovative technologies like Artificial Intelligence (AI) and Machine learning technologies. Crowdfunding platforms like Zippia,Milaap, and ImpactGuru offer Debt-based crowdfunding and Equity-based crowdfunding, empowering startups in diverse sectors such as the food & beverage segment industry with brands like 8 Myles and Waku. Artists and creatives are leveraging these platforms, disrupting traditional channels of financing like banks and venture capitalists. The report provides market size, historical data spanning from 2018-2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
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In today's digital age, crowdfunding emerges as a pivotal resource for businessmen, filmmakers, musicians, fundraisers, and startup companies, leveraging online platforms and technological advancements to realize innovative ideas. Crowdfunding service providers facilitate seamless interactions between creators and contributors, amplifying outreach through social media platforms and government efforts. From product launches to charitable endeavors, crowdfunding sites empower donors, influencing variables like equity crowdfunding and donation decisions. With the advent of artificial intelligence and machine learning, investors navigate marketing strategies to tap into a global audience. Equity crowdfunding opens doors for entrepreneurs, artists, and creators, fostering public support and driving innovation across diverse sectors.
Crowdfunding has transformed the entrepreneurial ecosystem, offering opportunities for businessmen, filmmakers, musicians, and fundraisers to access alternative capital through online platforms. Individual investors, along with startup firms and growing companies, explore diverse sectors like food & beverages, media & entertainment, real estate, and healthcare. While governments regulate crowdfunding to mitigate financial risks and uphold credibility, reward-based and donation-based models cater to small & medium investments as well as large investments. However, challenges such as fraud and misuse of funds persist, impacting funding goals and reputation. With technological advancements and innovations, crowdfunding service providers facilitate fundraising campaigns, leveraging social media platforms and government initiatives to reach a global audience. Equity crowdfunding emerges as a boon for women entrepreneurs, fostering growth in the technology segment and cultural sector with pre-seed and seed capital injections.
The P2P lending segment is estimated to witness significant growth during the forecast period. In this market, a fund provider lends money to a borrower without the involvement of a financial institution, such as a bank. It is one of the most popular models. Individuals can access the funds for spending on planned activities in a shorter time as P2P lenders liquidate the fund before the end of the terms for which the loan is availed is one of the major driving factors.
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The P2P lending segment was the largest and was valued at USD 110.32 million in 2018. Several government initiatives from across the globe are supporting the growth of the market in this segment. However, the growth of the market by P2P lending is expected to remain slow during the forecast period, owing to the reduced number of participants opting for the P2P business model, especially from MEA and APAC. Added to this, the nature of the start-ups and projects seeking funds also plays an important role; a start-up could have little or no experience, thus discouraging investment. Furthermore, P2P lending is usually not available for large amounts unless it is a loan for a business. All these factors are expected to result in fairly slow market growth during the forecast period.
In the realm of charitable giving, donors' decisions are increasingly influenced by creators across various fields. Entrepreneurs, businessmen, filmmakers, musicians, artists, and creators utilize social networking sites to amplify their voices and advocate for causes close to their hearts. Through compelling storytelling and impactful content, these individuals inspire philanthropic action and encourage support for charities. Donors, in turn, play a pivotal role in shaping the success of these initiatives, as their decisions drive the allocation of resources towards meaningful endeavors. Together, creators and donors form a symbiotic relationship, united by their shared commitment to making a positive difference in the world. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing the customer base in terms of investors is notably driving the market growth. With the growing popularity of as a concept fueling the growing number of platforms, the market is witnessing a significant increase in investors/buyers globally. A successful campaign finds a ready audience in the present digital era. This generates awareness among entrepreneurs, and they start looking for various options available to them. Similarly, investors are significantly contributing monetarily but are also early adopters to enhance their products.
Furthermore, platforms help entrepreneurs sell products or concepts that have not been released in the market. This is an optimal method to gauge user reactions and analyze the market. Thus, the increase in customer base in terms of investors/buyers will drive the growth of the market during the forecast period.
Promoting campaigns as avenues for crowdsourcing is an emerging trend shaping market growth in online financing platform for SMBs. In traditional funding, marketing, and product launch processes, there was very little interaction with customers before the product reached them. However, online financing platforms enable entrepreneurs to interact with customers and gauge the success of their product before launch through crowdfunding campaigns. This interaction helps in assessing demand-pull or technology push factors, influencing the investment required for product development and implementing necessary marketing strategies. Such innovative approaches in crowdfunding not only facilitate early customer engagement but also provide valuable insights that can shape the direction of SMBs' business strategies and funding needs during the forecast period.
However, with crowdsourcing becoming popular, campaign owners can engage with the target audience to gauge interest in the project and also to understand the expectations. This helps product developers continuously work toward enhancing value propositions and understand the prospects of a project before launch. Thus, the use of campaigns as an avenue for crowdsourcing will positively impact the growth of the global market during the forecast period.
High time-consuming process is a significant challenge hindering market growth. is a process, which includes several stages involving product development, finding investors for initial investments to fund marketing expenses, product registration, and expenses related to making the product compliant with standards if any. These pre-launch processes are time-intensive for entrepreneurs and often lead to delays in projects. In a majority of these projects, deadlines are fixed by individuals/companies based on which entrepreneurs manage to establish a customer base for the product.
Moreover, the delays in delivering the projects sometimes result in customers withdrawing from projects, refunds, and, in some cases, a complete refund on the investments to customers. Such delays and failures in the global market result in reduced customer/investor confidence in investing in campaigns. These factors will negatively impact the growth of the market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Chuffed.org Pty Ltd. - The company offers a platform namely ChuffedAmplify.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
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APAC is estimated to contribute 62% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market is experiencing significant growth in APAC, which is mainly driven by the increasing Internet and smartphone penetration. Adding to this, the growth of social media has the potential to build credible relationships over short messages, thus leading to the popularity of the P2P business model of in the region. Some notable vendors operating in the regional market are Chuffed.org Pty Ltd., Ketto Online Ventures Pvt Ltd., and Wishberry Online Services Pvt. Ltd., among others. The increased adoption of in Singapore and its surrounding countries is setting new opportunities for individuals and businesses to bring in new and creative ideas.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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Crowdfunding is a modern financial concept revolutionizing fundraising for early-stage companies. Unlike traditional forms of funding, it leverages digital platforms to pool small investments from a large group of individuals. This democratized approach fosters innovation and competition, offering alternative lending options. With government support and tax incentives, crowdfunding offers potential returns to investors, yet faces challenges like regulatory oversight and lack of awareness.
Further, the market attracts a diverse pool of participants including banks, venture capitalists, and small businesses seeking funding. Factors such as location, credit score, and net worth influence participation and investor decisions, driving transparency in crowdfunding platforms. Project creators engage with potential investors and the general public, disrupting traditional forms of funding for early-stage companies. Despite growth prospects, the market faces restraints analyzed through Porter's five forces, including competitive intensity from suppliers, new entrants, and substitutes.
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Market Scope |
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Report Coverage |
Details |
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Page number |
162 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 14.94% |
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Market Growth 2024-2028 |
USD 310.07 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
13.85 |
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Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 62% |
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Key countries |
US, Canada, China, Australia, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Chuffed.org Pty Ltd., Companisto GmbH, ConnectionPoint Systems Inc., Crowdcube Ltd., Crowdera Inc, Crowdfunder Ltd., DonorsChoose, FUELADREAM Online Ventures Pvt. Ltd., Fundable LLC, Fundly Inc., GGF Global Ltd., GoFundMe Inc., Indiegogo Inc., Ioby Inc., Ketto Online Ventures Pvt. Ltd., Kickstarter PBC, Kiva Microfunds, OPENDEAL INC., Patreon Inc., and Wishberry Online Services Pvt. Ltd. |
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Market dynamics |
Parent market analysis, Market Forecasting , Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period. |
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Customization purview |
If our market growth analysis report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
With the growing adoption of AI across industries, Technavio has analyzed its impact on crowdfunding market driven by the integration of Artificial Intelligence (AI). The platforms for reward-based, donation-based, equity, and debt crowdfunding, is experiencing significant growth and transformation driven by Artificial Intelligence (AI). AI is revolutionizing this sector by optimizing campaign success, enhancing user engagement, improving risk assessment, and enabling data-driven decision-making. This analysis delves into AI's impact on the crowdfunding market, backed by data and real-world examples.
These insights, available exclusively through Technavio, provide an unparalleled significant impact of AI on the crowdfunding market, backed by real-world examples and data.
The report provides details of AI's impact on various segment
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