Crowdfunding platforms raised $2.7 billion globally in 2012, an 81% increase over 2011, and could exceed $5 billion by year end, according to a report released Monday.
Research firm massolution collected data from 308 active crowdfunding platforms worldwide during the first six weeks of this year for its annual 2013CR–Crowdfunding Industry Report.
The report showed that platforms in two regions raised the lion’s share of capital in 2012. Crowdfunding volumes grew by 105% to $1.4 billion in North America and by 65% to $945 million in Europe. All markets grew by nearly 125%.
Lending- and donation-based crowdfunding drove growth in funding volumes last year, as did adoption of reward-based crowdfunding by small and medium enterprises:
- Donation- and reward-based crowdfunding grew by 85% to $1.4 billion
- Lending-based crowdfunding grew by 111% to $1.2 billion
- Equity-based crowdfunding grew by 30% to $116 million.
The growth in lending volumes mainly stemmed from crowdfunded microloans and community-driven loans to local small and medium enterprises, according to the report.
“While lending-, donation- and reward-based crowdfunding have thus far been leading this global financial revolution, equity-based crowdfunding is about to take center stage in the U.S.,” massolution chief executive Carl Esposti said in a statement.