Market Insights Financial Capital Raising Digital Capital Raising

Crowdinvesting - United States

United States

The United States is projected to see a total transaction value of €330.30m in the Crowdinvesting market by 2024.
When compared globally, the United Kingdom is expected to lead with a transaction value of €558m in 2024.
In the United States, Crowdinvesting in the Capital Raising market is experiencing a surge in interest from tech startups seeking alternative funding sources.

Key regions: Europe, Australia, Brazil, China, Israel

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Analyst Opinion

The Crowdinvesting market in United States is experiencing significant growth and development.

Customer preferences: Investors in the United States are increasingly drawn to crowdinvesting due to its potential for high returns and the opportunity to diversify their investment portfolio. With traditional investment options becoming more saturated, crowdinvesting offers a unique way for individuals to invest in innovative startups and projects. Additionally, the ease of access to crowdinvesting platforms and the ability to invest smaller amounts of capital make it an attractive option for a wider range of investors.

Trends in the market: One of the key trends in the crowdinvesting market in the United States is the rise of equity crowdfunding. This allows individuals to invest in early-stage companies in exchange for equity ownership. The implementation of the JOBS Act in 2016 has played a significant role in facilitating this trend by loosening regulations and allowing non-accredited investors to participate in equity crowdfunding. As a result, more individuals are able to invest in promising startups and potentially benefit from their success. Another trend in the market is the emergence of niche crowdinvesting platforms that cater to specific industries or causes. For example, there are platforms that focus on real estate crowdinvesting, renewable energy projects, or social impact initiatives. This trend reflects the growing demand for more specialized investment opportunities and the desire for investors to align their investments with their personal values or interests.

Local special circumstances: The United States has a highly developed financial ecosystem, which has contributed to the growth of the crowdinvesting market. The presence of a large number of venture capital firms, angel investors, and startup accelerators creates a fertile ground for crowdinvesting platforms to connect entrepreneurs with potential investors. Additionally, the United States has a strong culture of entrepreneurship and innovation, which further fuels the demand for crowdinvesting as a means of funding new ventures.

Underlying macroeconomic factors: The strong performance of the U. S. economy and the availability of capital have also played a role in the development of the crowdinvesting market. A robust economy provides a favorable environment for startups to thrive and attract investment. Furthermore, low interest rates and the search for higher returns have led investors to explore alternative investment options such as crowdinvesting. In conclusion, the crowdinvesting market in the United States is experiencing growth and development due to customer preferences for high returns and diversification, the rise of equity crowdfunding, the emergence of niche platforms, the presence of a well-developed financial ecosystem, and the underlying macroeconomic factors such as a strong economy and low interest rates.

Methodology

Data coverage:

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.

Forecasts:

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.

Additional notes:

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.