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Reward-Based Crowdfunding - Singapore

Singapore

Singapore is expected to reach a total transaction value of €0.57m in the Reward-Based Crowdfunding market by 2024.
When compared globally, the United States leads with a transaction value of €431m in 2024.
In Singapore, Crowdfunding platforms are gaining traction as a popular alternative for capital raising among startups and small businesses.

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

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Analyst Opinion

The Crowdfunding market in Singapore has been experiencing steady growth in recent years, driven by a combination of customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Singaporean customers have shown a growing interest in crowdfunding as a means of supporting innovative ideas and projects. They are attracted to the idea of being part of a community that supports and funds projects they believe in. Additionally, crowdfunding offers a unique opportunity for individuals to contribute to causes they are passionate about, giving them a sense of ownership and involvement in the projects they support.

Trends in the market: One of the key trends in the Singaporean crowdfunding market is the rise of equity crowdfunding. This form of crowdfunding allows individuals to invest in early-stage startups in exchange for equity ownership. This trend has gained popularity due to the potential for high returns on investment and the opportunity to support local entrepreneurs. Equity crowdfunding platforms have emerged to cater to this demand, providing a platform for startups to raise capital and for investors to discover new investment opportunities. Another trend in the Singaporean crowdfunding market is the growth of real estate crowdfunding. This allows individuals to invest in real estate projects, such as property development or rental properties, without the need for large capital outlays. Real estate crowdfunding provides an alternative investment option for individuals looking to diversify their portfolios and participate in the property market.

Local special circumstances: Singapore's strong entrepreneurial ecosystem and supportive government policies have contributed to the growth of the crowdfunding market. The government has introduced initiatives to promote crowdfunding as a financing option for startups and small businesses, providing tax incentives and regulatory frameworks to encourage participation. This has created a favorable environment for crowdfunding platforms to operate and attract both project creators and investors.

Underlying macroeconomic factors: Singapore's robust economy and high levels of disposable income have also played a role in the growth of the crowdfunding market. With a strong financial sector and a high concentration of high-net-worth individuals, there is a pool of potential investors who are willing to support innovative projects and startups. Additionally, Singapore's strategic location as a regional business hub has attracted international investors and entrepreneurs, further fueling the demand for crowdfunding opportunities. In conclusion, the Crowdfunding market in Singapore has experienced growth due to customer preferences for community involvement and support for innovative projects, as well as market trends such as the rise of equity crowdfunding and real estate crowdfunding. Local special circumstances, including a supportive government and a strong entrepreneurial ecosystem, have further contributed to the development of the market. Underlying macroeconomic factors, such as Singapore's robust economy and high levels of disposable income, have also played a role in driving the growth of the 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.