Crowdfunding raised $ 1.5 billion in 2011 and could attract twice as much in 2012
We have recently launched the Dhara-dara crowdfunding campaign and continue to study the theories and practices of this approach to project financing. We decided to translate the following article about a rather interesting, in our opinion, report on world crowdfunding.
The crowdfunding industry report , published by the massolution research group , shows that crowdfunding platforms raised almost $ 1.5 billion in 2011, funding more than a million projects . They also write that with current trends, this growing market will double in 2012.
The market was divided into four types of crowdfunding platforms:
To the surprise of those of us who focus on bonus crowdfunding, only 11% of the total amount was collected in such projects, and 49% of the funds were collected in projects for free. This is despite the fact that 47% of the platforms operate on a bonus basis and only 27% on a grant basis.
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At the same time, the total amount of fees in bonus crowdfunding is growing by 524% per year - from $ 1.6 million since 2009. Not surprisingly, North America collects the lion's share of money - $ 837.2 million - more than half of the amount collected worldwide. North America is also the fastest growing region.
The massolution study found that as of April 2012 there were 452 crowdfunding platforms in the world. Their number is expected to grow to 536 by the end of the year. Most of the platforms are based in North America - 208, of which 191 in the United States. In Europe - 139 platforms, of which 44 in the UK.
At the same time, 95% of all funds raised in Europe and 73% of all funds raised in North America are collected on five leading platforms. It would be interesting to delve a little into these numbers in order to see the share of the success of projects on these five platforms and the reasons for their dominance - because they are larger or because most of the projects are completed successfully.
Interestingly, although the market is expanding rapidly in terms of funds raised and the number of platforms, the ratio of funds paid to the funds promised falls. In 2009, 89% of the promised funds were paid, but by 2011 this figure had dropped to 79%.
massolution believes that this is due to the number of new platforms. But I would also suggest that there is an effect from the increase in the number of inexperienced fundraisers who do not understand how much labor is needed for a campaign to succeed, do not have the network needed to reach a sufficient number of contributors, or whose projects are simply unattractive. This problem will only get worse as the popularity of crowdfunding grows and the influx of opportunists hoping to make quick money.
This is especially true for projects on a bonus basis, where only 50% of the promised funds are paid, compared with 75% for equity, 79% for gratuitous and 88% for loan projects.
The size of the campaigns sharply distinguish share crowdfunding from other types. The average equity campaign seeks to collect $ 84,597 compared with $ 5,587 in loan loans, $ 4,076 in bonus and $ 664 in free campaigns. This may partly explain why free campaigns are so successful, collecting 49% of all funds: campaigns are smaller and they are more likely to achieve goals. Share projects collect 18% of the total, loan - 22%, and bonus - only 11%.
I would like the report to contain more information about the practical details of the behavior of fundraisers and contributors. But massolution still affects several interesting trends.
massolution says that raising funds through crowdfunding takes more time than you can imagine. Bonus projects require an average of ten weeks for successful completion. But this figure can be misleading, since Kickstarter now recommends setting a short term, because it is difficult to maintain momentum for more than a month. It would be interesting to see in this figure the ratio of projects, where the deadline was set, and where it did not, that is, whether this figure was caused by the fact that people themselves set such a deadline, or by the fact that projects really take so long to complete.
In contrast to popular belief, says massolution, collecting the first 25% is no more difficult than the last. In fact, on the contrary - it takes a little more time to collect the last 25%. There is also no indication that the flow of funds is accelerating towards the end of the project.
As for the contributors themselves, 90% finance only one or two projects, and only 7% finance 3-5 projects. Most contributors are not very active and do not show special loyalty to any one platform. The average minimum amount varies from $ 3 in bonucx projects, $ 8 in free projects and up to $ 60 in equity or loan projects.
But fundraisers who run more than one project seem to prefer the same platforms: 17% use the same platform more than twice, and 4% - more than three times.
It's great that there are reports of crowdfunding, but massolution still left many questions without answers. For example, although they affect which areas are popular on which resources, the data provided is not detailed enough to be useful. For example, it is interesting that only 9% of bonus and gratuitous projects constitute projects in the field of films, music and art, although they are covered more than others. But what is the separation between these types of projects? What is the success rate? How much is promised and going?
Hopefully this is just the beginning. We need more research to shed light on the area where there is no serious statistics. I hope that once this report has appeared with an analysis of trends, we will soon get something more substantive that will help contributors and project creators to make informed decisions about crowdfunding.
The crowdfunding industry report , published by the massolution research group , shows that crowdfunding platforms raised almost $ 1.5 billion in 2011, funding more than a million projects . They also write that with current trends, this growing market will double in 2012.
The market was divided into four types of crowdfunding platforms:
- equity: contributors receive a share in projects, earn a portion of the proceeds;
- loan: contributors receive income from their funds and expect to return the investment;
- bonus: contributors get non-financial benefits, and projects often use campaigns for pre-sales.
- gratuitous: contributors do not expect anything in return, they have philanthropic motives.
To the surprise of those of us who focus on bonus crowdfunding, only 11% of the total amount was collected in such projects, and 49% of the funds were collected in projects for free. This is despite the fact that 47% of the platforms operate on a bonus basis and only 27% on a grant basis.
')
At the same time, the total amount of fees in bonus crowdfunding is growing by 524% per year - from $ 1.6 million since 2009. Not surprisingly, North America collects the lion's share of money - $ 837.2 million - more than half of the amount collected worldwide. North America is also the fastest growing region.
The massolution study found that as of April 2012 there were 452 crowdfunding platforms in the world. Their number is expected to grow to 536 by the end of the year. Most of the platforms are based in North America - 208, of which 191 in the United States. In Europe - 139 platforms, of which 44 in the UK.
At the same time, 95% of all funds raised in Europe and 73% of all funds raised in North America are collected on five leading platforms. It would be interesting to delve a little into these numbers in order to see the share of the success of projects on these five platforms and the reasons for their dominance - because they are larger or because most of the projects are completed successfully.
Interestingly, although the market is expanding rapidly in terms of funds raised and the number of platforms, the ratio of funds paid to the funds promised falls. In 2009, 89% of the promised funds were paid, but by 2011 this figure had dropped to 79%.
massolution believes that this is due to the number of new platforms. But I would also suggest that there is an effect from the increase in the number of inexperienced fundraisers who do not understand how much labor is needed for a campaign to succeed, do not have the network needed to reach a sufficient number of contributors, or whose projects are simply unattractive. This problem will only get worse as the popularity of crowdfunding grows and the influx of opportunists hoping to make quick money.
This is especially true for projects on a bonus basis, where only 50% of the promised funds are paid, compared with 75% for equity, 79% for gratuitous and 88% for loan projects.
The size of the campaigns sharply distinguish share crowdfunding from other types. The average equity campaign seeks to collect $ 84,597 compared with $ 5,587 in loan loans, $ 4,076 in bonus and $ 664 in free campaigns. This may partly explain why free campaigns are so successful, collecting 49% of all funds: campaigns are smaller and they are more likely to achieve goals. Share projects collect 18% of the total, loan - 22%, and bonus - only 11%.
I would like the report to contain more information about the practical details of the behavior of fundraisers and contributors. But massolution still affects several interesting trends.
massolution says that raising funds through crowdfunding takes more time than you can imagine. Bonus projects require an average of ten weeks for successful completion. But this figure can be misleading, since Kickstarter now recommends setting a short term, because it is difficult to maintain momentum for more than a month. It would be interesting to see in this figure the ratio of projects, where the deadline was set, and where it did not, that is, whether this figure was caused by the fact that people themselves set such a deadline, or by the fact that projects really take so long to complete.
In contrast to popular belief, says massolution, collecting the first 25% is no more difficult than the last. In fact, on the contrary - it takes a little more time to collect the last 25%. There is also no indication that the flow of funds is accelerating towards the end of the project.
As for the contributors themselves, 90% finance only one or two projects, and only 7% finance 3-5 projects. Most contributors are not very active and do not show special loyalty to any one platform. The average minimum amount varies from $ 3 in bonucx projects, $ 8 in free projects and up to $ 60 in equity or loan projects.
But fundraisers who run more than one project seem to prefer the same platforms: 17% use the same platform more than twice, and 4% - more than three times.
It's great that there are reports of crowdfunding, but massolution still left many questions without answers. For example, although they affect which areas are popular on which resources, the data provided is not detailed enough to be useful. For example, it is interesting that only 9% of bonus and gratuitous projects constitute projects in the field of films, music and art, although they are covered more than others. But what is the separation between these types of projects? What is the success rate? How much is promised and going?
Hopefully this is just the beginning. We need more research to shed light on the area where there is no serious statistics. I hope that once this report has appeared with an analysis of trends, we will soon get something more substantive that will help contributors and project creators to make informed decisions about crowdfunding.
Source: https://habr.com/ru/post/160159/
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