REPORT: Crowdfunded Technology Investment to Increase Over $8Bn by 2020

CrowdfundBeat News Wire,

Doors Set to Open to Equity Investors

Hampshire, UK: 11th January 2016: Juniper’s latest research, Crowdfunding: Strategies & Impacts for Technology Markets 2015-2020, estimates that investments made in technology via crowdfunding platforms are set to increase sevenfold from an estimated $1.1 billion in 2015 to $8.2 billion by 2020.

New data from Juniper Research, has found that the crowdfunding industry is to see an accelerated growth from the lucrative, but less well-known, method of funding known as ‘equity crowdfunding’. This is against an investment market which is currently seeing a slowdown in traditional investments from VCs (Venture Capitalists) and Angel Investors.

crowdfundingcover
Equity Legislation Drives Inclusivity

The new research identified the UK as the leading market for the regulation of equity crowdfunding, with the establishment of successful platforms such as CrowdCube.

Juniper believes that other nations will follow this model by legislating to allow less sophisticated investors to engage in equity crowdfunding. The US in particular holds considerable promise, with the positive SEC (US Securities and Exchange Commission) ruling on the JOBS Act, Title III passed in October 2015. The result of which will be a surge in equity funding from 2016 onwards; as funding portals seek registration as early as January 2016.

Hybrid Platforms Come into Play

The ‘Reward’ Crowdfunding model, popularised by the likes of Kickstarter and Indiegogo, has been the most widely adopted, but has suffered recently following a number of high-profile failures, such as the Zano drones debacle.

In response, platforms are beginning to look at more hybrid crowdfunding models, whereby users have the option of investment in the company or project itself via equity or debt, rather than receiving a one off ‘gift’ for their support courtesy of the rewards model.

Report author Lauren Foye added: “The hybrid concept has been demonstrated recently, with videogames crowdfunding platform ‘Fig’ hosting projects to be backed through a combination of the rewards and equity models. Equity is attractive for consumers, who feel they may be investing in the next ‘Oculus Rift’ or ‘Pebble Time’, hence in line to make a significant profit.”

Other key findings

The debt model will represent the greatest share of crowdfunded contributions until 2020, although most of these contributions will go to non technology projects.
The proportion of technology crowdfunding investments based on equity, will see significant growth, almost doubling by 2020.

The whitepaper, Following the Crowd: Investment through Equity Funding, is available to download from the Juniper website together with further details of the new research.

Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.

Read the press release on our website
http://www.juniperresearch.com/researchstore/strategy-competition/crowdfunding/strategies-impacts-for-technology-markets?utm_source=cisionpr&utm_medium=email&utm_campaign=Crowdfunding_16_PR1

Tags: , , , , , , ,

HEADLINE NEWS

Yahoo FinanceCan Equity Crowdfunding Be Fixed?Yahoo FinanceWith the adoption last year of the Regulation Crowdfunding (Reg CF) exemptions by the Securities and Exchange Commissionprivate companies can now raise capital from all 230 million American adults. Until now, businesses have b [...]

Phys.OrgCrowdfunding expands innovation financing to underserved regionsPhys.OrgThe study found that crowdfunding in a region, and in particular successful technology campaigns, appeared to cause an increase in venture capital funding in the region. This occurs as venture capitalists [...]

Telegraph.co.ukWellesley to freeze crowdfunding campaign as it courts City investorsTelegraph.co.ukPeer-to-peer property lender Wellesley is suspending its crowd-funding efforts as it courts City investors to help fund its expansion. Wellesley is set to pause its campaign that asked s [...]

Mountain XpressFaces in the crowd: WNC crowdfunding initiatives | Mountain XpressMountain XpressEach week, Xpress highlights notable WNC crowdsourcing initiatives that may inspire readers to become new faces in the crowd. This week features an album ...and more » [...]

Amanda Todd's mom nears crowdfunding goal to attend Netherlands trialCTV NewsThe mother of a B.C. teen who died by suicide after being sexually exploited online is raising money to travel to the Netherlands for the trial of a Dutch citizen who will eventually be extradited to Can [...]

Crowdfunding Helps Little Red Feather Buy Horse ShareBloodHorse.com (press release) (registration) (blog)"We have the budget for one or more additional purchases under this current Crowdfunding initiative," said LRF's founder and managing partner, Billy Koch. "We n [...]

EntrepreneurHow Will Donald Trump's Presidency Affect Crowdfunding?EntrepreneurDonald Trump will soon be inaugurated as the country's 45th president and will potentially impact the burgeoning crowdfunding industry in a "yuge" way. Before I share my thoughts as one [...]

VentureBeatHere's how regulation crowdfunding performed in 2016VentureBeatIn May, the third and final part of the 2012 JOBS Act, Regulation Crowdfunding, went into effect and 2016 ended with much promise for entrepreneurs seeking funding and our government seeking jobs. Regulatio [...]

STV NewsCouple launch crowdfunding campaign to start own energy firmSTV NewsA couple fed up with the performance of energy suppliers are launching a crowdfunding campaign to start their own company. David Pike and Karin Sode said their firm Our Energy will be "completely transpar [...]

Forbes'Star Citizen' Lumbers Into 2017 With $141 Million In CrowdfundingForbesWhile HL3 is more a question if Valve ever feels like making video games again, Star Citizen is another animal entirely, a game that's very publicly in development with a practically unlimited [...]

CFB Finance

Marketwired

  • Crowdfunding
  • Crowdfund
  • Peer to Peer Lending
  • FinTech
  • Reg A+
  • Reg CF
  • Crowdfunding USA

Press Release

Live Crowdfunding .tv

What's Next Step in Regulation A+ JOBS ACTS Title IIII :L Interview : Steve Cinelli with Brian Korn Securities and Crowdfunding/Peer-to-Peer Lending Lawyer, Watch more video library | Conference | Interview | Campaign Showcase | Research | Education |