Are you someone who is trying to create a crowdfunding campaign? If so, you might want to understand some key crowdfunding trends in 2022.
Understanding Crowdfunding Statistics
Before we provide the info for these crowdfunding trends in 2022, let’s define what ‘Crowdfunding’ we are talking about in this instance. Crowdfunding can be those that are raising money for rewards/donations-based campaigns or equity/debt paradigms.
If you plan on creating a crowdfunding platform or running campaigns, these trends can help provide you with relevant information.
General Crowdfunding Stats
- The success rate for crowdfunding is roughly 22.9% which is quite low considering that not even half of the campaigns will raise the money they want. Although this is not the best, it’s why there are many crowdfunding campaigns that are using the All or Nothing funding mode. It’s common knowledge that crowdfunding can be a gamble as fas as you are not sure if you will meet your funding goal. This is why so many campaigns are using the All or Nothing funding mode.
- There is a 40/20 split on the different types of crowdfunding campaigns on the internet. 40% of crowdfunding backers are for entrepreneurship-based campaigns, whereas 20% of backers are focused on social causes. The rest would be considered other forms of crowdfunding.
- When it comes to fundraising, the typical crowdfunding campaign earns approximately $5,270. That takes into account the unsuccessful crowdfunding campaigns as well, however, the average successful campaign will raise $28,656.
- Crowdfunding is a growing industry, with steady year-over-year growth. It is projected that the crowdfunding industry will double by 2027.
- Updates are crucial for a campaign. Statistics say that campaigns with consistent updates have a higher success rate. Such campaigns regularly raise an average of 126% more than those with no updates to the campaign. Also, it helps to have a personal video, as these campaigns raise 150% more than those without videos.
- The UI (user interface) can influence potential backers. Campaigns that have a ‘thermometer’ for campaign progress see a 35% increase in giving.
- The average crowdfunding campaign will last roughly 9 weeks.
- Among crowdfunding backers, 28% of them are repeat backers to the same campaign.
- In regards to fully funded projects, the average pledge is $96.
- 36% of Americans are not familiar with crowdfunding.
- Getting funding for your campaign is not easy, it’s estimated that 42% of funds are raised in the first and last 3 days of a campaign. So be sure to run a pre-launch campaign and provide updates as it’s running.
- The average crowdfunding backer is between the ages of 24 to 35 years old.
- In 2022, there are roughly 1,468 crowdfunding companies in the United States.
- Crowdfunding platforms on average will charge a transaction fee from 5% to 12%.
Real Estate Crowdfunding
- The average annual ROI is 11% for real estate based crowdfunding campaigns which tends to have higher returns than other equity-based crowdfunding.
- North America represents 40% of the real estate crowdfunding investments, whereas Europe represents 33%, and the Middle East plus Africa are 2%.
- The real estate volume is $2.96 billion.
- Over 50% of the real estate investments are towards residential properties.
Donations Crowdfunding
- It’s estimated that roughly 14% of donors create their own peer-to-peer crowdfunding campaigns.
- The average non-profit campaign raises $9,237.55.
- Individuals raise an average of $568 for personal campaigns.
We hope these stats help you with your own crowdfunding campaigns or platforms. For more information, please see the sources below.
Resources:
- https://www.zippia.com/advice/crowdfunding-statistics/
- https://www.smallbizgenius.net/by-the-numbers/crowdfunding-stats/#gref
- https://whattobecome.com/blog/crowdfunding-statistics/
- https://nonprofitssource.com/online-giving-statistics/crowdfunding/