Market Insights Financial Capital Raising Digital Capital Raising

Reward-Based Crowdfunding - Australia

Australia

The total transaction value in the Reward-Based Crowdfunding market in Australia is projected to reach €2.49m in 2024.
When comparing globally, it is evident that the highest transaction value is achieved the United States (€431m in 2024).
Australia's Crowdfunding sector is gaining momentum, especially in tech startups, reflecting the country's innovative spirit and entrepreneurial drive.

Key regions: Germany, Brazil, Australia, Israel, United States

Mercado

Región

Comparación de regiones

Moneda

Analyst Opinion

The Crowdfunding market in Australia has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: One of the key customer preferences driving the growth of the Crowdfunding market in Australia is the desire for more personalized and meaningful investment opportunities. Traditional investment options often lack transparency and direct involvement, whereas Crowdfunding allows individuals to support projects and causes they believe in. This sense of community and connection resonates with customers who are looking for a more hands-on approach to investing.

Trends in the market: A notable trend in the Crowdfunding market in Australia is the rise of equity-based Crowdfunding. This allows individuals to invest in early-stage startups and innovative projects in exchange for equity ownership. This trend has gained traction due to the potential for high returns on investment and the opportunity to support local entrepreneurship. Equity-based Crowdfunding has also been facilitated by regulatory changes that have made it easier for companies to raise capital through this method. Another trend in the market is the growth of rewards-based Crowdfunding, where individuals contribute to a project in exchange for non-financial rewards such as products, experiences, or recognition. This trend has been fueled by the increasing popularity of creative projects, social causes, and innovative products. Rewards-based Crowdfunding provides a platform for creators and entrepreneurs to showcase their ideas and gain support from a wide audience.

Local special circumstances: Australia has a vibrant entrepreneurial ecosystem and a strong culture of innovation, which has contributed to the growth of the Crowdfunding market. The country has a high number of startups and small businesses that are seeking alternative funding options to fuel their growth. Crowdfunding provides a viable solution for these companies to access capital and gain exposure to a larger network of potential customers and investors.

Underlying macroeconomic factors: The growing Crowdfunding market in Australia is also influenced by underlying macroeconomic factors. The country has a stable economy and a high level of financial literacy among its population, which makes it an attractive market for Crowdfunding platforms. Additionally, low interest rates and limited investment opportunities in traditional sectors have prompted individuals to explore alternative investment options, including Crowdfunding. In conclusion, the Crowdfunding market in Australia is experiencing growth due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The desire for personalized investment opportunities, the rise of equity-based Crowdfunding, and the vibrant entrepreneurial ecosystem in Australia are driving the market's development. Furthermore, the country's stable economy and financial literacy levels contribute to its attractiveness as a Crowdfunding market.

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.