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Reward-Based Crowdfunding - Europe

Europe

The Reward-Based Crowdfunding market in Europe is expected to reach a total transaction value of €259.70m in 2024.
When comparing globally, the United States leads with a transaction value of €426m in 2024.
In Europe, France is witnessing a surge in Crowdfunding platforms catering to startups in need of capital for innovative projects.

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

Mercado

Región

Comparación de regiones

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Analyst Opinion

The Crowdfunding market in Europe has been experiencing significant growth in recent years.

Customer preferences: One of the key factors driving the growth of the Crowdfunding market in Europe is the increasing preference of customers for alternative financing options. Traditional banking systems have become less attractive to many individuals and businesses due to their stringent requirements and lengthy approval processes. Crowdfunding platforms offer a more accessible and streamlined way for entrepreneurs, artists, and social causes to raise funds. Customers also appreciate the transparency and direct engagement that crowdfunding offers, allowing them to support projects they believe in and have a personal connection to.

Trends in the market: Crowdfunding has become particularly popular in countries like the United Kingdom, Germany, and France. These countries have a large population of tech-savvy individuals who are comfortable using online platforms for financial transactions. The growth of the Crowdfunding market in these countries has been further fueled by government initiatives to support entrepreneurship and innovation. In addition, the rise of social media has played a significant role in the success of crowdfunding campaigns, as it allows for easy dissemination of information and the ability to reach a wider audience.

Local special circumstances: Each country in Europe has its own unique set of circumstances that influence the growth of the Crowdfunding market. For example, in the United Kingdom, the availability of tax incentives for investors has encouraged participation in crowdfunding campaigns. In Germany, the popularity of crowdfunding can be attributed to the country's strong culture of supporting local businesses and initiatives. France, on the other hand, has seen a rise in crowdfunding for cultural projects, reflecting the country's rich artistic heritage.

Underlying macroeconomic factors: The Crowdfunding market in Europe has also been influenced by underlying macroeconomic factors. The financial crisis of 2008 resulted in a tightening of lending standards by traditional financial institutions, making it more difficult for individuals and businesses to access funding. Crowdfunding emerged as an alternative solution, providing a way for entrepreneurs to bypass traditional channels and access capital directly from the crowd. Additionally, the low interest rate environment in Europe has made traditional savings accounts less attractive, leading individuals to seek out alternative investment opportunities such as crowdfunding. In conclusion, the Crowdfunding market in Europe is experiencing significant growth due to customer preferences for alternative financing options, government support for entrepreneurship, the rise of social media, and underlying macroeconomic factors such as the financial crisis and low interest rates. Each country in Europe has its own unique set of circumstances that contribute to the growth of the Crowdfunding market, making it a dynamic and diverse industry.

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.