Crowdfunding is becoming a widely favored alternative to raising capital rather than seeking loans from banks. Crowdfunding is a way for businesses or other organizations to raise money in the form of either donations or investments from multiple individuals. This new form of capital formation emerged in an organized way in the wake of the 2008 financial crisis largely because of the difficulties faced by artisans, entrepreneurs and early-stage enterprises in raising funds. With traditional banks less willing to lend, entrepreneurs started to look elsewhere for capital.
LTP has come up with a three-page sector snapshot of Europe’s crowdfunding and other online fundraising platforms. The report analyzes the crowdfunding market in Europe and discusses the various technology trends regarding the sector.
Advantages of crowdfunding for small and medium-sized businesses:
- Crowdfunded projects can get huge amounts of attention on social media and elsewhere, which can help them grow.
- Pitching a project or businesses through crowdfunding can be a valuable form of marketing.
- Some businesses raise an amount up to £100,000 in just a few days, giving them instant access to funds.
- As part of a crowdfunding process, the business can get feedback about their idea and how to improve it.
- Crowdfunding is great for niche ideas that would not have been able to raise funds through traditional methods.
According to the analysis of the snapshot, the crowdfunding market in Europe is expected to exceed $6 billion by 2020.
Table of Contents:
- European Crowdfunding Market & Forecast, 2013-2020
- Major Players in Europe’s Crowdfunding Market.
- Various Technology Trends of Crowdfunding & Other Online Fundraising platforms
- Regulations regarding Crowdfunding & Other Online Fundraising platforms in Europe
Note: A Segment Snapshot is a crisp analysis (3-5 pages) of specific FinTech segment or a specific region. Every snapshot is divided into different sections: segment definition, market sizing, and growth trends, main players in the industry, business trends, consumer trends and legal trends.