Crowfunding is a fast-increasing market

Pavel Prikhodko, Ph.D. Machine Learning

The number of international crowdfunding platforms is increasing every year. Crowdfunding is defined as a collective effort by a large number of individuals who network and pool small amounts of capital to finance a new or pre-existing business venture. Each project has a set amount of money to raise and a fixed timeframe; each day is counted down and the money raised is tallied up for visitors to follow the project’s success. Some sources suggest that current financial climate has given a trigger to the culture of crowdfunding.

The United States houses the leading crowdfunding market with 191 crowdfunding platforms in the country, according to information published at Statista.com in 2012. In comparison, the second-largest market in the world, the United Kingdom, had 44 crowdfunding platforms in the same year.

Let’s analyze the development in the worldwide crowdfunding volume of platforms from 2009 to 2012. The global funding volume of crowdfunding platforms in 2009 was $530 million. In 2010 it increased to $854 million and then took a big step to $1.47 billion in 2011. As we can see, it experienced a massive rise from 2009 to 2012. In 2012 the global funding volume amounted to $2.806 billion.

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Social causes accounted for a combined 30 percent of all crowdfunding projects in 2012. Business & entrepreneurship projects comprised almost 17 percent of the overall number. Films and performing arts came in third with about 11.9 percent. Music and recording arts constituted 7.5 percent, while energy and development amounted to 5.9 percent accordingly.

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About Pavel Prikhodko

Pavel Prikhodko, Ph.D. Machine Learning

Pavel has worked for many years as a researcher and developer on a wide range of applications (varying from mechanics and manufacturing to social data, finance and advertising), building predictive systems and trying to find stories that data can tell.

In his free time, he enjoys being with his family.

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