Market Insights Financial Capital Raising Digital Capital Raising

Reward-Based Crowdfunding - Brazil

Brazil

The Reward-Based Crowdfunding market in Brazil is projected to reach a total transaction value of €5.42m in 2024.
When comparing globally, it is evident that the United States leads with a transaction value of €431m in 2024.
Brazil's crowdfunding market is gaining traction among start-ups and small businesses seeking alternative capital raising options in the country's evolving financial landscape.

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

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Analyst Opinion

Crowdfunding has been gaining momentum in Brazil, with a growing number of individuals and businesses turning to this alternative financing method. The market is witnessing a surge in popularity, driven by customer preferences, trends, and local special circumstances.

Customer preferences: Customers in Brazil are increasingly drawn to crowdfunding as a means of supporting innovative projects and startups. They are looking for opportunities to invest in ideas that align with their personal interests and values. Crowdfunding platforms provide a platform for individuals to contribute to projects they believe in, fostering a sense of community and participation.

Trends in the market: One of the key trends in the crowdfunding market in Brazil is the rise of reward-based crowdfunding. This type of crowdfunding allows individuals to contribute to a project in exchange for a reward, such as a product or service. This trend is driven by the desire for unique and exclusive experiences, as well as the opportunity to be part of the development process. Another trend in the market is the growth of equity-based crowdfunding. This model allows individuals to invest in startups and small businesses in exchange for equity or shares. This trend is fueled by the increasing interest in entrepreneurship and the desire to support local businesses. Equity-based crowdfunding provides individuals with the opportunity to become shareholders and potentially benefit from the success of the funded ventures.

Local special circumstances: The crowdfunding market in Brazil is also influenced by local special circumstances. The country has a vibrant startup ecosystem, with a large number of entrepreneurs and innovative projects. However, traditional financing options are often limited for these startups, making crowdfunding an attractive alternative. Additionally, Brazil has a large population of internet users, providing a strong online presence and access to crowdfunding platforms.

Underlying macroeconomic factors: The development of the crowdfunding market in Brazil is also influenced by underlying macroeconomic factors. The country has experienced economic challenges in recent years, with a slow recovery from a recession. This has led to a decrease in traditional financing options, making crowdfunding an appealing choice for entrepreneurs and individuals seeking funding. Furthermore, the Brazilian government has implemented regulations to promote crowdfunding and support the growth of the market. These regulations provide a framework for crowdfunding platforms and protect investors, increasing confidence in the market. In conclusion, the crowdfunding market in Brazil is experiencing significant growth and development. Customer preferences for supporting innovative projects and startups, along with the trends of reward-based and equity-based crowdfunding, are driving this growth. Local special circumstances, such as a vibrant startup ecosystem and a large population of internet users, further contribute to the market's expansion. Additionally, underlying macroeconomic factors, including limited traditional financing options and supportive government regulations, play a significant role in the development of the crowdfunding market in Brazil.

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.