In the past 5 years the crowdfunding industry has undergone remarkable growth – estimated to be around 1,000% – while, at the same time, it has provided around $10 billion in funding to startups and small businesses. The crowdfunding industry’s exceptional growth is not likely to slow down this year either, since, according to early forecasts, the market is expected to grow by an additional 92%.
The main drivers for this year’s growth are to be found in the milestones that have been recently achieved by the industry. For instance, in the US, the removal of the 80 year-old ban on general solicitation and the SEC’s announcements surrounding Title III of the JOBS Act, to allow non-accredited investors to invest in equity capital. Additionally, industry awareness has multiplied over the years, with news headlines covering crowdfunding increasing 9,900% since 2004. Considering that for every $37,702 invested in startups one new job is created, it is possible to estimate that crowdfunding in 2014 will produce about 270,000 new jobs in the US alone. This means that, if the growth rate remains the same, by 2020 crowdfunding will have created more than 2 million new jobs. The overall economic value of the industry is expected to reach approximately $3.2 trillion by 2020, ceteris paribus.
Whether or not these numbers will be reality in a few years’ time depends on how the actors and stakeholders who, right now, have the power and a voice in the market will be able to lead, control and facilitate the market’s growth. Are you ready to make it happen?
References
Economic Value of Crowdfunding (2014). Fundable Infographic.
Image credit to: Torbackhopper: https://bit.ly/p/c9BtzG
Whether or not these numbers will be reality in a few years’ time depends on how the actors and stakeholders who, right now, have the power and a voice in the market will be able to lead, control and facilitate the market’s growth. Are you ready to make it happen?
References
Economic Value of Crowdfunding (2014). Fundable Infographic.
Image credit to: Torbackhopper: https://bit.ly/p/c9BtzG
About the author - Irene Tordera
Born and raised in Milan, Italy, Irene is an International Business graduate, with a strong interest for innovative ideas that can simplify our lives.
During her studies, she co-founded an online community for sportspeople and worked in marketing positions at Ogilvy & Mather Advertising and at the European Business Angel Network, in Brussels. She is a passionate blogger about crowdfunding and the startup ecosystem.
Born and raised in Milan, Italy, Irene is an International Business graduate, with a strong interest for innovative ideas that can simplify our lives.
During her studies, she co-founded an online community for sportspeople and worked in marketing positions at Ogilvy & Mather Advertising and at the European Business Angel Network, in Brussels. She is a passionate blogger about crowdfunding and the startup ecosystem.
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