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The 6 Waves to Watch in the World of Crowdfunding

26 September 2014
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One of the outcomes of the 2008 global financial crisis was the “funding gap”. Banks were less willing to provide loans and investors moved capital into more stable platforms. In general, the market tolerated less risk.

In this new environment, raising capital became the greatest challenge for small and midsize businesses (SMBs). They needed new platforms. Enter crowdfunding.

While some players have been around since 2008, the huge crowdfunding wave crashed onto the market between 2012 and 2013, particularly in Europe and the U.S. As of April 2012, there were more than 450 crowdfunding websites worldwide.

Given the relatively recent arrival of the crowdfunding wave to the market, its future iterations will be interesting to follow.

Here are six waves to watch in crowdfunding.

1. Crowdfunding will continue to grow. Online crowdfunding platforms raised $2.7 billion in capital in 2012 with expectations that the number would reach $5 billion by 2013, according to a study from crowdfunding-focused research firm Massolution. And these figures will likely continue to rise.

The World Bank commissioned a study and estimated that by 2025, the global crowdfunding market potential could be between $90 billion and $96 billion.

http://www.entrepreneur.com/article/237789