Future of Crowdfunding: Trends to Watch

Future of Crowdfunding
Mushfika Al Nahian

Crowdfunding has dramatically altered the way in which we provide financial support for imaginative concepts and endeavors. From start-ups to non-profit organizations, firms of all sizes are taking advantage of the collective power of the crowd to bring their visions to fruition.

Over the past few years, crowdfunding has seen incredible growth and has established itself as a widely utilized means of financing for many companies.

With the ongoing advancement of technology, the future of crowdfunding holds thrilling prospects and advancements that will shape how we fund projects and back causes that are important to us.

In this discussion, we will examine the latest trends and technological advancements driving the growth and transformation of crowdfunding, and what we can expect in the coming years.

The Prior Days of Crowdfunding

The concept of crowdfunding sounds recent, but the concept of crowdfunding has a rich history with a foundation going back to the 1700s. It has a centuries-long history in different countries and sectors. 

Crowdfunding came into the limelight in 1997 when the British Rock Band Marillion (which we now know as Kickstarter) raised $60k fund online for their reunion tour. Soon Artistshare appeared in 2000 as the first reward-based platform. Their first campaign raised $13,0000 which inspired others to launch crowdfunding platforms. 

Gradually other crowdfunding platforms become apparent. In 2008, the renowned crowdfunding platform Indiegogo was built. Right after the year 2009, Kickstarter was built. 

Over the years crowdfunding platforms continued to develop. Today Kickstarter controls crowdfunding platforms for creative projects. Over 146,000 Kickstarter campaigns have been funded

From then, several forms of crowdfunding emerged: reward-based, equity-based, donation-based, debt-based, real-estate crowdfunding, etc.

Crowdfunding Market Overview

The global crowdfunding transaction value is estimated to reach US$1.14bn in 2023. The transaction value is about to reach USD 66.72 Billion by 2030 at a CAGR of 16.40% over the forecast period. 

Crowdfunding consists of collecting donations from a large number of individuals. The donations are collected through social networks and web-based communication which makes it easy for donors to share the campaign and it has made it easier for campaign owners to reach a global audience. Through a crowdfunding campaign, one can raise funds for startups, creative projects, charitable projects, donations, etc. 

Market Segmentation

The crowdfunding market is segmented on the basis of end-user (technology, healthcare, product, culture),  product type (reward-based, equity, donation), and geography.


End-user applications competition is increasing which is forcing backers to donate to advanced technology to provide a better solution to users. Healthcare crowdfunding works all over the world, especially since it provided much support during the Covid-19 pandemic.  

Product Type

When a campaign creator raises funds that provide investors a share of its profits or gift in exchange for their contribution. This type of crowdfunding is suitable for startups or a single project. 


North America ruled the global crowdfunding market in 2022. The growing number of startup companies in the region is directing the regional growth market. The presence of a prominent crowdfunding platform provides a high potential for these campaigns. 

Asia Pacific expects to encounter rapid growth during the forecast period. The region’s growth is associated with the rise of startups, and innovative projects, and the increased rate of the Internet across the region providing better reachability to crowdfunding platforms.      

In 2021, Europe had the highest rewards share of 43.50%. Because of an increasing number of nations in the region legalizing crowdfunding rules, the European crowdfunding market is likely to enlarge. Moreover, the European Government is also working to establish a law that will allow crowdfunding platforms in the region to work over the Europe area.

Recently rewards-based crowdfunding is expected to expand the growth of the market. Reward-based crowdfunding allows raising funds through an online platform and offers investors a gift or peak for their contribution. 

  • Reward-based crowdfunding is applicable for a startup business or particular projects. 
  • During the Covid-19 pandemic, reward-based crowdfunding increased and a number of campaigns were created by numerous individuals. 
  • The startups in the United States hold over 17.4% share of the country’s total population. It’s a great chance for reward-based crowdfunding in the area.  

Crowdfunding Market Giants

In the crowdfunding industry, there are major giants who are leading the market. They are focusing on developing platforms to raise funds for non-profit, charity, startups, etc. A number of developers are focusing on developing blockchain-based crowdfunding platforms to make it easy for the funding process. 

The demand for crowdfunding platforms is increasing day by day. These platforms are flexible, ascendable, and successful methods to raise money. The industry giants are intended to expand their offerings to better serve the needs of investors.

Leading market giants are:

  • Kickstarter
  • Indiegogo
  • GofundMe
  • Crowdcube
  • SeedInvest Technology
  • Fundly
  • Mighty Cause
  • Patreon
  • FundRazr

Prophecy For The Future of Crowdfunding

Crowdfunding market will go global

The crowdfunding market is growing at an exceptional rate and changing the role of financial institutions. By connecting potential investors with entrepreneurs, crowdfunding is transforming the traditional fundraising model. Its persuasiveness as a global phenomenon indicates that it will continue to grip international markets.

New funding models will emerge 

The most common crowdfunding modules are donation-based, reward-based, equity-based, etc. These days new crowdfunding modules are coming on specific campaigns. As the day progresses new modules are demanding. People started raising money for every event. Keeping in mind, crowdfunding platforms are 

The crowdfunding platform will increase enormously

There are 1,478 crowdfunding platforms globally. Because of the growing rate of crowdfunding campaigns, the rate of increasing crowdfunding platforms is massive. Day by day it will enlarge.  

Final Words

Crowdfunding has grown excessively over the past decade and it continues to grow in the future. It has transformed the way people raise money for projects without taking loans from banks or investors. Day by day crowdfunding market value is increasing. With continuous support, crowdfunding is going to be a major source of capital rather than traditional methods.

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