by Bruce Houghton
Global crowdfunding grew 81% to $2.7 billion in 2012, successfully funding more than 1 million campaigns, according to a new report from Massolution, a consultancy specializing in the crowdsourcing and crowdfunding industries.
Projects related directly to music and the recording arts represented 7.5% of total funding, or $202.5 million.
Films & Performing Arts projects represented 11.9% of funding globally. Only the Social Causes (30%) and Business & Entrepreneurship (16.9%) categories attracted more dollars.
North America and Europe account for over 95% of the total market, according to the study which surveyed 308 active crowdfunding platforms (CFPs) worldwide.
Growth Rates By Region
Although crowdfunding offers a growing number of countries opportunities to access funds, North America and Europe raised much more capital than platforms in other regions.
- North America: crowdfunding volumes grew 105% to $1.6 billion
- Europe: crowdfunding volumes grew 65% to $945 million
- In total, all other markets grew close to 125%
Growth Rates By Models
The growth in funding volumes was primarily driven by lending- and donation-based crowdfunding, and by SME adoption of reward-based crowdfunding. The growth in lending volumes mainly stemmed from crowdfunded micro-loans and community-driven loans to local SMEs.
- Donation- and Reward-based crowdfunding grew 85% to $1.4 billion
- Lending-based crowdfunding grew 111% to $1.2 billion
- Equity-based crowdfunding grew 30% to $116 million