the state of the crowdfunding nation, the crowd data center, 2014
TRANSCRIPT
eFunding &
The State of The Crowdfunding Nation Documenting The Global Rise of eFinance & the eFunding Escalator
HEADLINE EDITION
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eFunding &
The State of The Crowdfunding Nation Documenting The Global Rise of eFinance & the eFunding Escalator
The Crowd Data Center’s Inaugural Report
Headline Edition
The full, extended, report can be downloaded from TheCrowdfundingCentre.com/report W: TheCrowdDataCenter.com E: [email protected]
Jason Best welcomed the report and the Crowd Data Center saying "Data is critical in driving the
development of any industry and none more than crowdfunding. The ability to document money invested, jobs created, sales growth, new company starts, etc are all vital to demonstrate to regulators
and investors that this market is the modern finance market and one that should be embraced." Jason Best, Co-Founder at Crowdfund Capital Advisors & Co-Architect or the JOBS ACT
"This report is a crucial development for our field. With such a fast moving market, growing exponentially, it is extremely important that policy makers, educators and professionals have a resource to track funding
patterns.The Crowdfunding Centre has laid the foundation for a data set that can change the industry." Dr Richard Swart, Global Crowdfunding & Alternative Finance Researcher,
University of California, Berkeley
“While this landmark report is especially important at this time since it answers – from the data - so many of the questions people ask when the word “crowdfunding” is mentioned it is more than that. The Crowd Data Center itself is now providing an ongoing online resource that can answer pressing questions and keep the world up to
speed on what some of us have felt for some time is an unstoppable phenomenon in the making.” Professor Alan Barrell, Entrepreneur in Residence Judge Business School, University of Cambridge
and
about The Crowdfunding Centre:
@CrowdfundCentre just found out about you. Huge help in my research when looking for trends.
You just saved me minimum 10 hours a month on research. This is awesome. Count me in!
Eli Regalado, Mad Hatters Agency, May 2014 (by Tweets)
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Executive Summary
This paper is the first major mapping of global Crowdfunding over time. It is the first fruits from The Crowd Data Center now a live, ongoing, online big-data-model of this massive ecosystem, now ready for exploration. This is made possible by Crowdfunding’s online, open-by-default, nature. We have already tracked in excess of 75,000 projects creating around three million snapshots and is a powerful new resource available to answer the pressing questions for everyone with a stake or interest in Crowdfunding, investing or increasing their venture’s chances of success.
This inaugural report tracks and quantifies growth through the first quarter of 2014 providing new insights into the nature as well as the size of Crowdfunding in the USA, UK and worldwide. Other countries will be covered in future editions drawing on this new resource,
Tracking and Quantifying Crowdfunding’s Exponential Growth Crowdfunding’s growth is rapid
and extensive. The explosion of computing power described by Moore’s Law – doubling every 18 months – has transformed business and the world. Global Crowdfunding is also growing exponentially. Currently at a rate roughly ten times that of Moore’s Law, doubling roughly every two months. In the UK first quarter growth was more than double this again and signs are that while the global rate is sustained and sustainable for the foreseeable future the UK rate probably has a seasonal element which will become clear in the next quarter.
The Future The dictates of time mean that this report has but scratched the surface of what the data is able
to tell us. We are on the cusp and as this new territory begins to open wide for full exploration THE CROWD DATA CENTER provides the map, as well as the tools to mine the data for the understanding and information-nuggets that really matter and can sustain and accelerate the massive growth we have uncovered here. Starting now.
GET THE FULL REPORT AT thecrowdfundingcentre.com/report
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About…
About The Crowd Data Center
and
The State of the Crowdfunding Nation Report
The Crowd Data Center - Headlines
We’ve already captured almost 2 Million Daily Project Status Snapshots (1,915,306) and the results are fascinating.
MORE THAN 4 MILLION BACKERS PLEDGED MORE THAN $351M AND RAISED MORE THAN $291M.
A NEW CROWDFUNDING PROJECT IS CREATED EVERY THREE MINUTES, WITH AROUND 500 NEW PROJECTS CREATED EVERY DAY.
GLOBAL CROWDFUNDING IS GROWING STEADILY, MORE THAN DOUBLING EVERY SIXTY DAYS.
THE UK GREW FASTER STILL IN FEBRUARY AND MARCH ACHIEVING A GROWTH RATE OF 350%. IN MARCH MORE MONEY WAS PLEDGED IN THE UK THAN IN JANUARY AND FEBRUARY COMBINED.
GLOBAL CROWDFUNDING CONTINUES TO GROW WITH AROUND 500 NEW PROJECTS PER DAY AND BETWEEN 18,000 AND 22,000 PROJECTS OPEN AND FUNDING AT ANY ONE TIME.
Total Pledges: 4,047,856
Total Pledged: $351,174,819
Total Raised (Fully funded): $261,839,702
Total Raised Amount (Fully funded plus flex): $291,700,246
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Headlines Stats Q1 2014
Total Pledges: 1,819,849
Total Pledged: $155,815,549
Total Raised (Fully funded): $117,410,593
Total Raised Amount (Fully funded plus flex): $133,031,905
Notes 1. Figures are those actually captured. UK Totals are expected to rise by something above 10% and worldwide figures 90% as more, smaller, platforms are added. 2. ‘Raised’ means money that actually flowed (from backers and investors via platforms to projects) while pledges are promises of funding (which may not be called upon if a project fails to reach target). 3. Pledges usually fall in a previous month (or earlier) than the closure (and therefore funding) of a project. This means that money pledged lags actual funds delivered by a variable margin (since projects may fund for anything from a few days to three months or more) making it dangerous to compare funding with pledges on a monthly basis.
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Key Stats – At A Glance
Size and Growth – Activity
New Projects and Pledges during Q1 2014
New Projects Growth Per Day All Pledges Pledges/Day
WORLDWIDE 29, 270 101.47% 325 1,787,313 19,859
USA 19,527 76.81% 217 1,336,813 14,853
UK 2,230 350.85% 25 99,799 1,109
Notes Growth compares rates at the end of January with those at the end of March. These and the latest monthly figures and figures are available at TheCrowdDataCenter.com
Fully Funded Projects during Q1 2014
Projects Growth Per Day
WORLDWIDE 7,148 49.75% 79
USA 5,472 40.75% 61
UK 608 317.24% 7
Notes Care should be taken in comparing with opening/open projects for a number of reasons including high growth rates and time lag plus a variety funding periods ranging from 30 days or less to 90 days or more. More insights and detailed information and the latest monthly figures are available at TheCrowdDataCenter.com
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Performance and Success Rates
Comparing Categories
The highest performing categories were:
TOP 5 - MOST PLEDGES TOP 5 - AMOUNT RAISED
(FULLY FUNDED AND FLEX)
GAMING 348,280 TECHNOLOGY $23,040,771
FILM 234,315 FILM $17,277,759
DESIGN 229,212 DESIGN $17,356,450
TECHNOLOGY 215,645 GAMING $16,758,292
MUSIC 164,696 MUSIC $10,332,472
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Platforms & Performance Global Crowdfunding saw increases across the board in Q1 and the UK especially saw big increases month on month through the quarter, indicating that there is a major upswing in activity, probably due to growing awareness.
There are around 1,000 Crowdfunding platforms across the world and that number is steadily increasing. Most of these are small – new or very niche – and Crowdfunding is dominated by a small number of larger platforms. The leading platforms – as defined by number of projects and funds raised successfully – are tracked in near-real-time by The Crowd Data Center.
Total funded projects: 16,365 (including 7,686 fully funded & 8,679 flex funded)
Average backers: 187
Total funds raised: $133m ( £79m )
Comparing Platforms – 2014 So Far
Platforms by Project and Success Rate – available in the full report
GET THE FULL REPORT AT thecrowdfundingcentre.com/report
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Notable Trends and Anomalies
UK: Growth is very high in the UK and, as noted above. As well as being somewhat earlier in the uptake cycle this probably includes a seasonal element (given that the tax year starts 6th April in the UK). Although an increasingly high profile because of parliamentary activities (most notable the Westminster Crowdfunding Forum) and press coverage may also be a significant factor in this high growth. Worldwide: As might be expected, due to smoothing effects across a larger sample, worldwide growth is more consistent - but is fast and exponential, doubling activity roughly every 60 days. This is around 10 times the rate of Moore’s Law (of computing power). USA: Growth in the USA is less spectacular and consistent. Likely factors include: It is a more mature market. Seasonal variations, yet to be understood. The very high focus on the JOBS Act and equity Crowdfunding which is capturing a lot of attention, energy and capital without ‘return’ as equity Crowdfunding remains practically illegal (except in very limited circumstances) and onerous.
2014 and Beyond
This is the headline report for the first quarter of 2014. The full, extended, report can be downloaded from TheCrowdfundingCentre.com/report
Get the latest insights and create and use our tools to mine the data for stats and insights you need, data in the way you want at TheCrowdDataCenter.com
More insights and detailed information and the latest monthly figures are available at TheCrowdDataCenter.com
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Your Questions Answered
About The Data Mountain
Like Google TheCrowdDataCenter brings together and analyses publicly available information from many
sources, tens of thousands of projects together with news, our own independent research and data submitted
directly by Crowdfunders to create a new resource. It provides an up-to-the-moment interactive map together with
the specially created tools allowing entrepreneurs, investors academics and others to mine the data without the
need for any specialist skills.
About The Tools
In addition to the data and basic search have created a range of special, easy to use, tools that answer the key
questions that different player – Entrepreneurs, Investors, Business Support Professionals and Analysts - need
answered, specifically and in detail, with the minimum of time investment and fuss. Plus more advanced tools for
those, such as academics and analysts who need to make a deep dive for the pearls only available at greater
depths.
Valuable Answers
Crowdfunding is opening a whole new territory to exploration which we have dubbed eFinance. Whenever new
territory opens like this there are always opportunities for the pioneers willing to roll up their sleeves explore the
new territory and locate the golden opportunities to build anew. In such circumstances having the right maps and
tools can make all the difference between success and failure and between arriving well ahead – or a a very tardy
second place. Data is crucial - and the answer to the right question at the right time can result in the creation of a
new business and, occasionally, a whole new industry.
TheCrowdDataCenter provides, in near-real-time:
An Interactive Map of this new territory – as well as the ebbs and flows of interest, pledges, backers and
money
Easy to use The Tools to get Fast Answers – to mine the data for the specifics, the answers that mean
you can forge ahead with confidence on the basis of the evidence.
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New Tools & Special Reports
This is just the beginning. In addition to this report we will soon issue a series of ‘Special Reports’ of value to those with a specific interest (including national and local government and Accountants and business advisers and Crowdfunders themselves). Most importantly of all we are now providing direct near-real-time access to this invaluable resource, which made this report possible, together with the easy to use tools to generate insights tailored to your own needs as an entrepreneurs, investor or professional.
As has been noted:
"This report is truly the first of its kind and offers a hugely valuable insight into the emerging patterns and trends of global crowdfunding activity. The information collected by the Crowd Data Centre allows researchers to undertake a level and depth of analysis that has previously been all but impossible". Dr Joe Cox, Principal Lecturer & Principal Investigator, Crowdfunding Research University of Portsmouth
We want this The Crowd Data Center to be an equally valuable resource for everyone involved – especially crowdfunders, those who back, advise and otherwise support them. To that end we hope you will join us at TheCrowdDataCenter.com, try the tools for yourself and let us have your feedback.
The future belongs to the crowd.
Go to TheCrowdfundingCentre.com and select a basic ‘Backer’ package to get support for your campaign pre and post-launch support for your campaign at no cost. Select a Venture or VenturePro account to get additional tools and facilities at low cost. See also the forthcoming Crowdfund Campaigning Special Report for in-depth insights and analysis into the key questions when planning and executing a campaign.
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Other Notes – for Project and Platform owners & Professionals
Would you like your project or platform to be included? Check or add it at TheCrowdfundingCentre.com
If you wish your platform to be represented in the stats please email us at [email protected]
Professionals: PR, Crowdfunding Coaches, Social Media Managers, Platform Staff, Analysts and Investors… You can save time and glean invaluable insights using the tools now available at TheCrowdfundingCentre.com
@CrowdfundCentre just found out about you. Huge help in my research when looking for trends. You just saved me minimum 10 hours a month on research. This is awesome Eli Regalado, Mad Hatters Agency, May 2014
Seeking: We are seeking in-country partners for each nation globally to work with us to analyse and report on this data from each country’s perspective. Please email us with details at or your organization and its interest at [email protected] to be considered.
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The Full Detailed Report
FULL REPORT CONTENTS
Introduction .............................................................................................. The Crowd Data Center - Headlines .................................................................. Headlines Stats Q1 2014 ............................................................................... Key Stats – At A Glance ................................................................................. Performance and Success Rate ........................................................................ Platforms & Performance ............................................................................... Your Questions Answered ............................................................................... Conclusions ..............................................................................................
ALL OF THIS AND MORE AVAILABLE IN THE FULL REPORT FROM thecrowdfundingcentre.com/report
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Acknowledgments & Attributions
With thanks to
Barry Sheerman MP, Chair of the Westminster Crowdfunding Forum Professor Alan Barrell. Entrepreneur in Residence, Judge Business School, University of Cambridge Jason Best, Woodie Niess, Richard Swart of Crowdfund Capital Advisors and the authors of “The Rise of Future Finance” Dr Joe Cox, Ruth Hedges Kendall Almerico Bruno Schneider Bill Morrow, CEO & Founder, Angel’s Den David Bholat Tania Ziegler, Knowledge Peers Victoria Silchenko Karen Darby and everyone who has helped make this happen – you know who you are.
My especial thanks also to
The Team: Michelle Rodger, Jonathan James & Kay Klug Horacio Morales Blum & Rodrigo Frías Rivas, CrowdyLab.com Stephen Hazell-Smith Tania Ziegler, Knowledge Peers
Without whom this report (and the infographics) would not exist. Thank you all.
Barry E James, Editor and Lead Author