(Newswire.net — January 29, 2016) — Crowdfunding has enjoyed enormous growth over the past few years. This year, expect for the upward trend to continue. In fact, 2016 could be the year that crowdfunding balloons to unforeseen levels. Whether you’re an entrepreneur, investor, or financial expert, you’ll want to keep an eye on this industry, which will be anything but quiet over the course of the next few months.
Industry Growth Trends
In 2010, the online crowdfunding industry sat a relatively modest market level of$880 million. Quickly fast forward to 2014 and the industry had quickly grown to $16 billion. While numbers are still pouring in for 2015, it’s believed that the industry grew to somewhere around $35 billion. As a comparison, the entire venture capital industry invests an average of $30 billion per year.
Part of this is rooted in the fact that crowdfunding humanizes the act of giving money. Whether it’s acampaign supporting a selfless volunteer who needs money to continue providing for local needs, or acampaign that raises $10.2 million for the development of a new watch, crowdfunding is allowing the general public – for the first time ever on a large scale basis – to support ideas and causes they believe in.
2016 Crowdfunding Predictions
In 2016, experts are expecting to see massive growth. Some of this will be spurred by interest from the marketplace, while more growth will result from evolving industry regulations. To get a better idea of what will happen this year, let’s take a look at a handful of industry predictions.
· Equity crowdfunding to grow. Equity crowdfunding is poised to take off this year, thanks torecent additions of Regulation A+. Experts expect 10-20 multimillion dollar Reg A+ offerings to close, which will provide proof of concept for other companies on the fence.
· Growth in Asia. Crowdfunding isn’t just an American niche. According to reports, Asia (as a region)grew by 320 percent and raised roughly $3.4 billion. Experts are under the impression that global growth will continue throughout different regions of the world, with additional growth expected in Asia.
· Private funding to evolve. If you browse social media sites long enough, you’re bound to come across a crowdfunding campaign started by a friend or acquaintance. This is just the beginning. With so many success stories in the past, look for more people to launch campaigns to raise money for medical hardships, family needs, and charitable causes.
· Campaign marketing to evolve. As crowdfunding evolves, you can expect businesses to surround this market with service offerings. In particular, look for more marketing companies to specialize in crowdfunding services that are designed to promote campaigns and maximize funding.
Experts are predicting big crowdfunding changes in 2016. These are just four of the predictions you’ll hear when they speak. But regardless of what you hear, the future is bright.
The Future of Funding
While it may have been a niche industry five or six years ago, it’s clear that the future of modern funding will forever be tied to crowdfunding. Furthermore, 2016 will be seen as the year that crowdfunding became a viable option for everyone.