Over the last decade, crowdfunding has become an increasingly viable option for raising money and connecting borrowers and lenders across multiple sectors.
Websites like Kickstarter, GoFundMe, and IndieGoGo are all lucrative platforms, with billions of dollars raised since their launch dates.
Crowdfunding statistics indicate that while not all campaigns prove successful, this is a growing industry that provides an alternative to traditional forms of lending, even expanding it into the real-estate market with great success.
It’s not a guaranteed option for anyone, but there are some factors that can help in creating a campaign that will meet its intended funding.
The Most Relevant Crowdfunding Stats: Editors Pick
- The success rate for crowdfunding campaigns is 23.2%
- On average, 12% of Facebook shares become donations
- GoFundMe has raised more than $10 billion
- 50.2% of the time, medical crowdfunding campaigns are dedicated to men
- 97.9% of all raised funds are debt-based
- 55% of donors prefer to donate online with a debit or credit card
- From 2021 to 2025, the crowdfunding market will expand by $196.36 billion
- The real estate crowdfunding industry will grow to over $300 billion by 2025
Crowdfunding Trends and Statistics
1. The average success rate for a crowdfunding campaign 23.2%.
(TheCrowdDataCenter)
Crowdfunding may seem like a quick and easy way to raise funds for a project, trip, or even to help you in a medical or other financial crisis, but there is a lot more that goes into making a good proposal.
There are various factors that go into creating successful crowdfunding campaigns. Still, one of the most notable factors that contribute to the failure of crowdfunding campaigns is that project leaders misjudge project needs, and often don’t set high enough financial goals.
2. The average value of a crowdfunding campaign is $5,726.
(Statista)
The amount of money that crowdfunding campaigns can earn vary a great deal. Some projects cost as much as a million dollars, whereas others may require little more than a thousand.
Seeing that far more projects are of a smaller monetary value, worldwide crowdfunding statistics point out the average value of a crowdfunded project is on the lower side.
This average evens out some pretty extreme values, tempering massive campaigns that gathered capital exceeding $300 million (such as that of the video game Star Citizen).
3. On average, the video length for the most funded Kickstarter campaigns is 3 minutes and 11 seconds.
(ProductHype)
A video outlining your project and campaign goals can be an invaluable tool, especially if it’s engaging and creative. Making an engaging 3-minute video isn’t that simple, so analyzing crowdfunding video statistics becomes extremely important.
While you don’t need to match the video length to the second, statistics show that videos between 2 minutes and 30 seconds and 5 minutes are most effective to an online audience.
4. An average of 12% of Facebook shares become donations.
(Fundly)
Crowdfunding ultimately depends on being able to reach masses of people and engage them in your project quickly to receive funding.
As such, social media is a useful tool due to its vast reach and regular usage. Facebook is especially successful in sharing crowdfunding campaigns, and yet, Facebook crowdfunding statistics show that, while sharing among your network doesn’t hurt, it’s definitely not a guarantee. Awareness building is an integral part of any proposal in order to receive donations, and requires more than just asking others to post.
5. The average second-time donor made a second donation 349 days following their first donation.
(State of Modern Philanthropy 2019)
Understanding the likelihood of donors repeating their donation is incredibly useful. According to statistics on crowdfunding for charities, it will take your run-of-the-mill donor around a year to chip in again. Meanwhile, 19% of returners will come back after around 90 days.
This information, while not always consistent, can help project leaders make projects and estimate potential earnings based on the first round of funding.
6. Indiegogo has successfully launched more than 800,000 projects.
(The Crowdfunding Formula)
IndieGoGo stands more or less shoulder to shoulder with Kickstarter in terms of reputation and popularity. Judging by IndieGoGo crowdfunding statistics, this platform has a strong community of over 9-million users.
At any time, IndieGoGo hosts 1,200 live campaigns and it has even more InDemand projects, storing 1,800 such campaigns at any given moment. IndieGoGo is available in 230 countries and boasts 28 categories, much more than Kickstarter, which has only 15 categories.
While IndiGoGo doesn’t have an extremely high success rate, it is unique in it’s design in that it provides the option to receive money raised, even if you don’t reach your goal.
Is crowdfunding a good investment?
Crowdfunding can be a good investment because it lets investors test out the market and motivate a user base. If the public’s response to a crowdfunding project is lukewarm, it could be due to an unreceptive market.
Furthermore, it can reduce the costs of amassing capital. Raising capital via the financial market can be very costly and difficult, so crowdfunding is much more affordable. Moreover, it tends to be more straightforward.
Crowdfunding Statistics for the US and Beyond
7. Twitch fundraisers raised over $83 million in 2020.
(Forbes)
Twitch is the largest platform for live streaming in the world, mostly associated with video game streaming. The platform has the unique perk of letting content creators create a close relationship with their audience. Soon after its creation, people discovered that the nature of the site suits crowdfunding well.
As a result, a sizable chunk of its streamers organize charity and crowdfunding events. Twitch crowdfunding statistics are quite impressive. For example, a streamer called DrLupo has raised more than $3.68 million for St. Jude Children’s Research Hospital through his annual charity stream, Build Against Cancer.
8. GoFundMe has raised over $10 billion.
(FinanceOnline)
GoFundMe is a tremendous crowdfunding platform comparable to the likes of Kickstarter and IndieGoGo. Since its founding in May 2010, it has been pivotal in raising billions of dollars in donations.
GoFundMe’s crowdfunding donations statistics truly are impressive. This website focuses on personal or individual fundraising goals rather than commercial interests and has gathered over 150 million donations throughout its lifetime.
9. 28% of donations to nonprofit crowdfunding campaigns are repeat donations.
(Investing in Communities)
Non-profit crowdfunds tend to form around kind, noble causes. The people who donate regularly resonate deeply with the campaign’s intent, so they are inclined to donate multiple times.
Nonprofit crowdfunding campaign statistics enforce this trend, with more than a quarter of all donors donating again to non-profit campaigns. Interestingly, Millennials are a very active demographic on the crowdfunding scene: 71% of them have raised funds for a not-for-profit cause.
10. 38.21% of Kickstarter projects were successful in 2019.
(Statista)
Kickstarter is a massive crowdfunding tool, one that’s well-known for its slant toward creative endeavors. Millions of people have placed donations to back up the site’s numerous projects.
Kickstarter campaigns have a relatively high success rate, with over one-third meeting their goals. While we know what percentage of kickstarters are successful, what’s more notable is that 60% of campaigns still fail. The reasons behind failed campaigns are numerous and not always due to the project itself. That being said, successful projects have accumulated over $4.9 billion since the launch of this crowdfunder.
11. The crowdfunding market will grow by $196.36 billion between 2021 and 2025.
(PRNewswire)
The crowdfunding industry is a rapidly expanding one. In 2021, the market size for this sector should grow by 13.86%.
According to the crowdfunding stats for market shares, the crowdfunding market will see a CAGR of around 15% in the overall 2021-2025 time frame. Much of this increase will come from the APAC region, which will be responsible for roughly 62% of all growth.
12. 59.2% of crowdfunding campaigns for medical patients are for men.
(JMIR Publications)
With health costs being difficult to cover for many in the U.S., crowdfunding efforts to pay for these costs are commonplace. Statistics on crowdfunding for public health show that California is the state with the most medical-cost campaigns, opening 163 in 2019.
One intriguing piece of data states that female patients are less likely to be the benefactors of these campaigns, representing only 39.4% of the subjects for crowdfunding in this category.
No matter what gender, the vast majority of medical crowdfunding benefactors are adults, leaving just a little under 20% of campaigns representing children.
Why do crowdfunding campaigns fail?
The data shows that crowdfunding campaigns are unsuccessful because their organizers set unrealistic financial goals. Nine times out of ten, this happens because they ask for too little money. Once they reach their goal, they’re left with insufficient funds for their project.
There are other common reasons, of course, such as not creating a unique campaign, poor organization, and insufficient awareness-raising.
Crowdfunding Worldwide Statistics
13. The crowdfunding market will grow by $196.36 billion between 2021 and 2025.
(PRNewswire)
The convenience of donating to various causes and projects is only increasing as the world expands its financial interests to the online world. As such, the crowdfunding industry is a rapidly expanding one. In 2021, the market size for this sector is expected to grow by 13.86%.
According to the crowdfunding stats for market shares, the crowdfunding market will see a CAGR of around 15% in the overall 2021-2025 time frame. Much of this increase will come from the APAC region.
14. In 2018, 6,455,080 crowdfunding campaigns took place worldwide.
(International Banker)
Crowdfunding has grown substantially in popularity over the last decade, bolstered by expanding internet access and social media sharing. Projections show it will continue to grow in this decade as well, as it establishes itself as a legitimate way to access funding, loans, and donations.
Global crowdfunding statistics note that almost 6.5 million crowdfunding projects were started in 2018. Crowdfunding is indeed becoming an amazing alternative to traditional lending forums.
15. By 2025, the real estate crowdfunding industry will grow to more than $300 billion.
(CrowdEngine)
Real estate crowdfunding is becoming an increasingly popular option for financing a property over the last few years as crowdfunding provides a faster and more direct way for borrowers and lenders to connect, without the tedious banker middleman.
Real estate crowdfunding statistics predict that many are picking up on this form of lending, with a growth rate that isn’t slowing down.
16. APAC will account for 62% of growth in the crowdfunding industry.
(Technavio)
Crowdfunding as an industry is expecting steady growth in the foreseeable future. It’s very convenient for entrepreneurs to use, given the worldwide reach it offers through the Internet.
One region, in particular, will experience notable growth in crowdfunding: The Asia Pacific.
As global crowdfunding market statistics highlight, this part of the world will account for 45% of the overall market growth in crowdfunding. China and Australia are the main drivers behind this progress, pushing it above the growth of all other world regions. Especially through the use of social media as a source of free advertising, this part of the world is about to realize the potential of crowdfunding.
Key Takeaway Crowdfunding Statistics
17. If a campaign gains 30% of its goal within week 1, it is more likely to succeed.
(Crowdfunding.io)
For crowdfunding, the road to success is always tinged with uncertainty. With some good tactics for spreading the word, you can hope for positive results, but despite that, there is always an element of chance.
That said, we do have some crowdfunding success statistics that can help us predict whether a crowdfunding campaign will go well or not. For example, campaigns with videos shorter than five minutes are 25% more likely to succeed than those with longer videos.
18. Debt-based crowdfunding comprises 97.9% of all raised funds.
(P2PMarketData)
The external image of crowdfunding can feel like a hand-out service. Projects are put online, and donors contribute to the cause out of the goodness of their hearts. This is a misconception, however. Almost 98% of all crowdfunded projects are debt-based, meaning there is an agreement that the funds will be paid back somehow.
Equity crowdfunding statistics show that equity donations represent 1.7%, and reward or donation systems are almost nothing, sitting at around 0.7% of all projects.
19. 9% of Kickstarter projects have failed to deliver their promised rewards.
(Kickstarter)
Kickstarter is a pretty massive platform that ensures its popularity with a careful selection process. It does so to ensure only the very best projects appear on their website. But not even that can stop failure every time.
Statistics on failed crowdfunding reward delivery for Kickstarter confirm that 8% of all dollars donated to Kickstarter projects go toward failed causes. This rate of failure remains consistent across all 15 of Kickstarter’s categories.
20. 53% of email shares will convert into donations.
(BusinessWire)
Effective awareness raising a crowdfunding project can make all the difference, so making the most of your marketing strategy is crucial. Not all channels are equally effective, but email stands consistently as a very effective strategy.
Crowdfunding marketing statistics tell us email can be much more effective than other venues for crowdfunding. For example, Facebook shares have only a 12% donation rate, and Twitter is even worse with a rate of a mere 3%. Email is set apart from the massive onslaught of articles, links, and advertisements that litter social media platforms giving the most attention to your campaign.
21. 55% of donors prefer donating online with a debit or credit card.
(Nonprofit Tech for Good)
Crowdfunding is a primarily online activity, and as such, information sharing and privacy become a consideration. Crowdfunding donor statistics indicate that over four-fifths of donors object to the idea of their personal information being shared from a crowdfunding project.
Most contributors appreciate a token of appreciation, but online etiquette is of the most importance, especially when people are giving money.
22. A little under 19 million people pledged to Kickstarter projects in November 2020 alone.
(Statista)
Kickstarter is pretty much the biggest crowdfunding platform around. It mostly accommodates creative endeavors, but it also has room for all sorts of projects. Its many features and careful campaign curation has made it immensely popular.
Kickstarter crowdfunding statistics show just how much attention this platform gets. November 2020 was a record-holding month, with a total of 18.87 million backers, 6.33 million of which came from repeat backers.
Based on these metrics, October 2019 was the second-best month in the last few years, seeing approximately 16.9 million pledges, with 5.56 million of those 17ish million people repeating their donation.
What are the risks of crowdfunding?
An obvious risk with crowdfunding is that the project doesn’t meet its intended goal or the amount of effort needed to run the campaign is underestimated. Other dangers include promoting a product that isn’t a good fit with crowdfunding, violating the rules of the crowdfunding platform, and launching a campaign too early.
Conclusion
Crowdfunding is increasingly an indispensable tool for raising funds for projects, real-estate or even personal financial crisis’. While it comes with its own risks and isn’t a guarantee, crowdfunding statistics show that these sites remove big banking from the borrower-lender process and provide an immense alternative to traditional financial services.
Understanding the various methods in which campaigns can become successful is integral if you want to take advantage of the benefits of this growing financial funding option.
People Also Ask
Some crowdfunding sites are best for different kinds of crowdfunding and different niches. As such, it ultimately depends on the needs of the project being funded.
Generally speaking, many point to Kickstarter and IndieGoGo as the overall best sites for crowdfunding purposes.
Meanwhile, Causes is a great option for nonprofits, while many content creators recommend Patreon. Beyond that, GoFundMe proves to be a popular solution for personal crowdfunding.
By and large, crowdfunding platforms will take fees for the services they deliver. This allows investors to amass donations or capital for charity campaigns.
These fees consist of a percentage taken from the total funds collected once a project meets its goal.
If you’re the benefactor of the crowdfund and not the platform hosting it, you have a few ways to make sure you meet your goal.
For example, you can provide incentives for people to donate (like gifts for donating) or you can include an engaging video, which is proven to increase the odds of people donating.
An obvious risk with crowdfunding is that the project doesn’t meet its intended goal. This tends to happen often, so you should do whatever you can to maximize your odds of success.
Another common risk is underestimating the amount of effort needed to run a campaign like this. Other dangers include promoting a product that isn’t a good fit with crowdfunding, violating the rules of the crowdfunding platform, and launching a campaign too early.
Crowdfunding through reputable platforms is safe and secure. Such websites make use of several methods to keep the entire process safe for everyone. These methods include SSL technology, PCI compliance, well-defined refund policies, and more.
However, we can’t really vouch for unreputable platforms. As such, it would be advisable to consider the better-known crowdfunding organizations before turning to other options.
From a legal standpoint, running a crowdfunding campaign on two platforms is perfectly fine. The only exception would be if one of the two sites of your choosing disallows it.
Practically, it isn’t the best idea. There is no reason why two different campaigns would receive more donations, than just streamlining donors through one website.
Interested parties tend to enjoy watching the progress of a campaign through one place, and dispersing this could negatively impact your success rate.
Crowdfunding statistics show that it can even lead to your campaign crashing since people can’t quickly gauge how it’s doing, or you don’t reach the goal of either website.