Facts and Figures: Crowdfunding in Europe
Crowdfunding is the easiest and most convenient way to raise money for startups and even medium sized businesses. The entire finance industry has been impacted by the emergence of crowdfunding. Europe has experienced a boom in Crowdfunding paving the way for future financing.
The platform provides an efficient and effective way to raise money for projects and even business ideas by the contributions or investments made by the people. As has been observed, the culture of crowdfunding came into existence due to the global economic crisis which impacted the whole world, especially Europe.
In the European Market, different methods of financing have grown and the market had achieved a record 7.67 Billion Euros in 2016. There are different types of crowdfunding platforms, such as reward-based crowdfunding and equity-based crowdfunding. The equity-based platform itself had reached 219 Million Euros in 2016.
UK is the leader when it comes to crowdfunding in Europe. Germany is right behind and Sweden is third in the market. Germany alone had raised 47 Million Euros in 2016 through the equity-based crowdfunding platform.
The Best Social Platform
Crowdfunding has been used by just about anyone and is the perfect platform for social and artistic ventures. Kickstarter has been been by artistic ventures with great success. Businesses have found new way in Europe to raise capital and it has been observed that in 2015, the financing through peer-to-peer crowdfunding by SMEs in Britain showed about 27% of the companies had received GBP 249.900 through the platform was Funding Circle, Ratesetter and Thincats.
Research Conducted by European Crowdfunding Network
The European Crowdfunding Network (ECN) has conducted research on the European market. The study was conducted on up to 75,000 Crowdfunding networks across Europe. The study found that there are other purposes besides raising capital when running a Crowdfunding campaign such as developing community engagement, audience development, market research, promotion and skills development which makes it a distinctive feature about the market.
Technology has greatly impacted each and every industry, especially communications. Costs have reduced due to the technological developments and people have started to use this technology to connect and do work in a more meaningful way. Crowdfunding has become a highly popular option for startups and small medium enterprises to raise capital.
The platform has seen significant growth throughout Europe recently. Cultural and creative sectors are the ones who are taking the most advantage of the platform in Europe. Women and minorities have benefitted the most from the platform whereas, they had faced discrimination before when trying to raise money.
The Future of the Financing World
Crowdfunding is the future of the financing world as it has revolutionized the way startups and SMEs raise capital. The European Crowdfunding market is forecasted to continue growing and it has become a popular option for raising capital such as in the UK, Germany and Sweden.
Britain is the leader when it comes to crowdfunding and the country is likely to remain the leader. There are many types of crowdfunding platforms which are popular in Europe such as Reward-based Crowdfunding, Donation-based Crowdfunding, Equity-based Crowdfunding, Human Resource Crowdfunding and Real Estate Crowdfunding.
There are many crowdfunding platforms which are available throughout Europe which is why it is important for startups and SMEs to do their research before developing a crowdfunding campaign. It is also vital for the business to understand their target audience in order to create a marketing strategy which attracts potential investors easily.
Crowdfunding is a great way for a business to raise capital in Europe which is why your business should give the platform a try.