25 Valuable Crowdfunding Statistics, Facts, and Trends
Crowdfunding is becoming a highly popular way to raise capital. Money is most typically raised for a good cause, event, or project. Crowdfunding uses the collective effort of a community, group of friends, individual investors, or even customers, usually via crowdfunding platforms.
This rapidly expanding industry has reached new heights during the COVID-19 pandemic, and it’s certainly set to continue growing. The most popular and largest type of crowdfunding is donation crowdfunding.
This type of crowdfunding is typically used to pay for good causes, and life events and to help those who might be sick and are in need of expensive treatment. On the other hand, crowdfunding can also be used to help fund startup projects, such as video games and similar things.
In this blog, we’ll go over some of the most important crowdfunding trends, facts, and statistics you should be familiar with in 2022, as well as what it takes to start a successful crowdfunding campaign.
Crowdfunding Statistics (Highlights)
- The world leaders in crowdfunding market share are the US (42%), the UK (11%), and Canada (5%)
- Crowdfunding projects in North America generate $17.2 billion each year
- Less than 22% of all crowdfunding operations end up being a success
- The most successful crowdfunding campaigns have 316 backers on average
- Kickstarter is among the most popular crowdfunding platforms
- The crowdfunding market is projected to grow to an astounding $300 billion by the year 2030
General Crowdfunding Statistics
1. The global crowdfunding market size was $84 billion in 2018 and is expected to reach $1.02 billion in 2022
Further crowdfunding statistics show that the market is expected to continue to grow at a CAGR (compound annual growth rate) of approximately 16.81% between 2022 and 2026.
This also means that the market size will increase by an astounding $239.78 billion by the year 2026. The global crowdfunding market is mainly driven by social media as a source of free promotion.
This means that the global crowdfunding market has fairly easy access to capital when compared to traditional funding methods.
2. The world leaders in crowdfunding market share are the US (42%), the UK (11%), and Canada (5%)
It is certain to say that some countries contribute more to crowdfunding efforts than others. Currently, the world leaders in crowdfunding are the United States, the United Kingdom, and Canada.
Successful crowdfunding campaigns experienced a growth of approximately 33.7% in the last year, and the industry has been growing at a fairly steady pace.
This could mean that we will see more and more countries partake in crowdfunding campaigns and efforts to help causes around the globe.
3. Around 20% of crowdfunding investments focus on social causes, while 40% focus on business and entrepreneurship
The top crowdfunded projects typically deal with entrepreneurship ventures and are organized in business. Social causes take up fewer than a quarter of the total on crowdfunding sites, according to general crowdfunding statistics.
In today’s world, the majority of crowdfunding campaigns go toward helping startup companies or developing businesses. They primarily use crowdfunding as a means of accessing alternative funds and getting much-needed financial support.
Businesses can also use a crowdfunding campaign as a means to pay for expenses related to a new venture or product line before investing more money, as well as a way to get access to debt-free funding.
Currently, there are four different types of crowdfunding: donation, equity, debt, and rewards crowdfunding. Crowdfunding statistics show that campaigns that raise at least 30% of their total fundraising goal in the first week are way more likely to reach their target amount.
4. Between 2016 and 2020, regulation crowdfunding raised more than $367 million in the US
(Crowdfund Capital Advisors)
Regulation crowdfunding refers to a company’s ability to sell and offer securities through crowdfunding campaigns. However, there are certain rules and requirements in order to make this possible.
For example, such crowdfunding campaigns must have all their transactions take place through a registered intermediary, which could either be a funding portal or a broker-dealer.
Between 2016 and 2020, statistics show that there were more than $367 million in funds raised by regulation crowdfunding in the United States alone.
5. Crowdfunding projects in North America generate $17.2 billion each year
Crowdfunding campaigns raise around 17$ billion every single year in North America alone, and this number is projected to continue growing steadily.
Experts predict that the crowdfunding market will reach astronomical heights within the next couple of years. According to Statista, the projected compound annual growth rate for the crowdfunding market will be 14.7% in the next 4 years.
6. Last year, there were more than 6 million (6,455,080) crowdfunding campaigns around the world
The crowdfunding industry reached a new milestone in the previous year with over 6 million crowdfunding campaigns. The average successful crowdfunding campaign managed to raise approximately $28,656.
On the other hand, the average crowdfunding campaign, in general, raised only around $824, which is a significant difference. This difference tells us just how many low-performing crowdfunding campaigns there were.
Also, statistics show that up to 17% of crowdfunding donations are made on mobile devices, but the number of donations via mobile devices could increase significantly over the upcoming years.
Crowdfunding Campaign Statistics
7. Overall, crowdfunding campaigns have an average of just 47 backers
(Crowd Data Center)
Crowdfunding statistics show a similar trend when it comes to the average number of backers or donors and the average amount that is raised through a fundraising campaign.
Overall, the average number of backers for all crowdfunding campaigns is significantly lower than the average number of donors for campaigns that were successful and fully funded, which is to be expected.
With an average of just 47 donors, the average crowdfunding campaign has less than 6 times the average amount of backers that a successful crowdfunding campaign has.
8. Less than 22% of all crowdfunding operations end up being a success in the end
Crowdfunding industry statistics show that not even a quarter of all crowdfunding projects ever reach their goal. According to data, approximately 22% of all crowdfunding campaigns are considered successful crowdfunding campaigns.
Crowdfunding campaign statistics show that many crowdfunding campaigns with a team behind them raise up to 38% more than a solo crowdfunding campaign. Additionally, the average crowdfunding campaign pledge for a successful crowdfunding project is $96.
This might seem surprising, but crowdfunding industry statistics actually show that the majority of fully funded projects are typically backed by lots of smaller donations rather than a few large ones.
Statistically, a project that reaches 30% of its goal within the first week has a greater chance of being a fully funded project in the end.
9. On average, successful crowdfunded campaigns raise around $33,000
Further crowdfunding statistics show that campaigns that include video content actually earn more than double the amount (105%) of what a regular crowdfunding campaign without a personal video would earn.
There are also many other factors that could influence how much a crowdfunding campaign raises, as well as a variety of ambitious fundraising strategies.
This means that attaching simple, personal videos to your crowdfunding project could potentially mean double the capital for your crowdfunding effort. This is even more probable for those that maintain eye contact with the camera and, therefore, the audience.
Several studies have shown that looking potential donors directly in the eyes could mean receiving more donations and pledges. Other tactics that campaign owners can use to garner more donations include updating their supporters every 5 days.
Statistics show that they could raise up to 3x more funds by keeping in touch with their donors, as well as that the average number of updates for successful campaigns is 4. The average word count in the campaign description should be 300-500 for optimal results.
10. A typical crowdfunding campaign earns a little over $5k on average
The average pledge for fully funded campaigns is around $96, whereas the average pledge for all crowdfunding efforts is $88.
Contrary to the difference in the number of donors, the average crowdfunding campaign donation doesn’t vary drastically for fully funded projects and those that are not fully funded by their end.
11. Crowdfunding for nonprofits is usually more successful, with around $9000 in donations
Statistically, a nonprofit crowdfunding campaign typically has more repeat donors than regular crowdfunding campaigns. Users on nonprofit crowdfunding platforms donate up to 3 times to either the same campaign or several campaigns.
The average crowdfunding campaign for nonprofits raises $9,237, according to several crowdfunding statistics. On the other hand, the average crowdfunding campaign raises approximately $7,290.
This is usually due to the nature of the nonprofit campaigns, for example, the fundraising goal of many nonprofit crowdfunding campaigns is to raise money for medical treatment. When it comes to nonprofit campaigns, successful campaigns end within a year.
12. The most successful crowdfunding campaigns have 316 backers on average
Since crowdfunding typically operates on a donation basis, people who crowdfund are not required to pay back the funds once they reach their fundraising goal. However, many crowdfunding organizations and companies offer some kind of incentive for their backers.
The most successful crowdfunding projects have over 300 backers on average, which is a significant amount. For example, when it comes to crowdfunding for a game, backers will usually be offered some kind of early access content in return.
Statistics also show that campaigns are more likely to grow if campaign owners update their supporters every once in a while. Data indicates that if a successful campaign owner posts an update, the campaign could raise up to 126% more funds.
Also, team-driven crowdfunding campaigns raise more money on average than those that are run by a single person or business entity.
Crowdfunding Platform Statistics
13. Kickstarter is the most popular crowdfunding platform
Kickstarter is definitely one of the best crowdfunding websites to raise capital and pre-sell any product ideas you might have. Crowdfunding statistics also show that approximately 37% of projects on Kickstarter get successfully funded.
This platform is also most popularly used among video creators and filmmakers. There are a few dance-related projects here and there, and those tend to do much better in terms of the number of average crowdfunding campaign backers.
14. Kickstarter has more than 565,000 projects, making it the platform with the most projects overall
With more than half a million projects and up to 40% of successful campaigns, Kickstarter is definitely one of the best platforms you can use for this specific purpose.
The platform has a user base of more than 18 million backers and more than 63 million pledges in total to this day. Statistics show that the majority of fully funded projects have raised between $1000 and $10,000.
According to crowdfunding platform statistics, platforms usually take a small percentage of the money raised.
15. Indiegogo projects raised $41,634 each on average, which is the highest amount raised on any platform
Indiegogo is certainly among some of the most popular crowdfunding platforms we have today. It is also one of the largest, with the highest average amount of money raised per fully funded project out of any other platform.
As of 2017, Indiegogo had approximately 11 million backers on its platform, and by 2019 the platform grossed around $1.6 billion in crowdfunding funds. On a monthly basis, there are around 19,000 crowdfunding campaigns launched.
16. Projects on Fundrazr have a 41.8% success chance, which is the highest out of any fundraising platform
If you take into account the average success rate across all the available crowdfunding platforms nowadays, Fundrazr definitely takes the first place with the highest success rate across its successful campaigns out of all other platforms.
According to Statista, Fundrazr is the best site to go to if you want to ensure crowdfunding success. Even though it is a smaller platform, it still boasts numerous successful crowdfunded campaigns.
17. GoFundMe has raised more than $9 billion so far from more than 120 million donations across the globe
GoFundMe, which is another titan of the crowdfunding industry, takes a different approach compared to other platforms. The website allows people to raise money for various occasions, including celebrations and even natural disasters.
According to crowdfunding statistics, a new campaign on GoFundMe is launched every 8 seconds. Also, approximately 40% of all donations submitted through GoFundMe are worth less than $50.
Statistics show that the most popular day for GoFundMe donations is Friday, meaning that any person or company interested in raising money should launch their campaign on a Friday to increase their chance of success.
Crowdfunding Donor Statistics
18. Up to 60% of all donors on GoFundMe in 2019 were new accounts
In 2019, less than a quarter of all crowdfunding campaigns received donations from more than one country via GoFundMe. The average crowdfunding pledge on GoFundMe is $15 per donation, while any social media campaign share results in an average of $13 per donation.
Typically, GoFundMe is best suitable for individuals looking to start an independent initiative, with an average successful campaign rate of approximately 30%, according to numerous statistics.
Up to 14% of donors around the world have created an online, peer-to-peer fundraising campaign at some point in their life, but statistics show that these campaigns are not the most successful campaigns, contrary to a nonprofit crowdfunding campaign, for example.
19. The most active GoFundMe donor donated more than 293 times to 234 different projects and fundraisers
In 2021, the most generous donor on GoFundMe donated an astounding 434 times, which is the highest amount of any donor on any crowdfunding platform. Also, statistics show that the country with the most generous donors was Ireland.
In the United States, the most generous cities were Spring, TX, Marietta, GA, and Silver Spring, MD. The most generous US states were Massachusetts, Vermont, and Connecticut.
20. The average donor on crowdfunding platforms is aged between 24 and 35 years
Crowdfunding statistics show that the users who donate the most on crowdfunding platforms are fairly young and mostly millennials. Further statistics also show that up to 60% of millennials will donate $481 on average to nonprofits every single year.
Additionally, nearly 3 out of 5 young adults stated that they were willing to raise money on behalf of an organization or company that they felt mattered to them.
Approximately $5.5 billion was donated to reward and donation crowdfunding, while $2.5 billion was donated to equity crowdfunding. Crowdfunding has added $65 billion to the global economy.
21. Up to 28% of nonprofit crowdfunding donors will donate to the same campaign again
The average success rate of any crowdfunding campaign is 22.4%. However, statistics show that nonprofit crowdfunding has a significantly higher average success rate. Nonprofit crowdfunding also has higher donation amounts and a higher likelihood of repeat donors.
Crowdfunding Projections & Trends
22. The crowdfunding market is set to grow to an astounding $300 billion by the year 2030
The global crowdfunding market is set to continue growing over the upcoming years. Currently, North America brings in the highest amount of revenue per year ($17.2 billion), closely followed by Asia ($10.54 billion).
Europe takes third place with $6.48 billion in crowdfunding revenue per year, followed by South America ($85.74 million), Oceania ($68.8 million), and Africa ($24.16 million).
According to statistics, it takes approximately 11 days in order to prepare the most successful campaigns. Also, the average duration of the most successful campaigns is around 9 weeks, with approximately 42% of funds raised in the first and the last 3 days of a campaign.
23. The amount of crowdfunding campaigns is projected to grow to more than 12 million by the end of 2023
(Focus On Business)
Just last year, there were almost 6.5 million crowdfunding campaigns hosted around the world. Statistics show that at this moment, around 64% of US consumers are aware of crowdfunding platforms.
As that percentage continues to grow, we will also see an increase in the overall number of crowdfunding campaigns per year, with some projections stating that there will be more than 12 million successfully crowdfunded campaigns by the end of the year 2023.
With the growing reliance on technology in almost every aspect of today’s world, crowdfunding campaigns will become more mainstream and more visible to people, especially in the United States.
24. The crowdfunding market is projected to continue growing at a CAGR of 11.2% between 2022 and 2028
The global crowdfunding market is projected to continue growing in a steady fashion in the upcoming years. Different statistics indicate an average CAGR of approximately 11%.
In just the United States, the crowdfunding market is expected to show an annual growth rate of almost 3%, which would result in a projected total amount of up to $1.3 billion by the year 2027.
This data also shows that, from a global comparison perspective, the highest global transaction value for crowdfunding is reached in the US.
25. An almost 14% year-over-year growth rate is expected to happen in the crowdfunding industry starting from 2021
(Focus On Business)
The crowdfunding industry, along with the number of crowdfunding campaigns, is expected to continue growing and top 12 million campaigns by the end of 2023. Just three years ago, the total number of campaigns was just over 5 million.
This number later grew by an astounding 19% to almost 6.5 million in 2018. Just last year, the number of campaigns grew by 26% to a staggering 8.72 million.
In 2022, the number of crowdfunding campaigns is expected to exceed 10 million, and this is further set to increase by 7.4% in the upcoming year, showing an enormous amount of growth in a relatively short period of time.
How Can These Crowdfunding Facts Help You?
For many non-profits, entrepreneurs, or even small businesses, crowdfunding can certainly be a successful endeavor. Many companies got the opportunity to grow with the help of crowdfunding sites.
Nowadays, there are different types of crowdfunding, such as equity crowdfunding or donation crowdfunding, both of which are used for different purposes. On average, crowdfunding campaigns raise more than $28,000.
Even though crowdfunding is an excellent way to help your business or cause in the beginning, there are things to take into consideration. For example, many crowdfunded projects typically offer something in return to their donors, such as early access to games or gifts.
Regardless of what your reason for starting a crowdfunding project might be, it is of utmost importance to go through the statistics and facts we’ve mentioned above and make informed decisions based on the provided information.