The global crowdfunding market to decline at a CAGR of (16.96%) during the period 2017-2021
Global Crowdfunding Market 2017-2021, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market. To calculate the market size, the report considers the revenue generated through the amount invested by the investors in the crowdfunding campaigns.
According to the report, one of the major drivers for this market is Crowdfunding as a source of free promotion. Crowdfunding can act as a free marketing tool and as an opportunity to pre-sell the product. An active crowdfunding campaign can go further than just acquiring the required funds. Campaigns are optimal techniques to introduce the mission and vision of the venture to the market as they are cheaper and reach multiple channels faster. Social media is a common platform adopted for many crowdfunding campaigns, allowing the tracking of referral traffic to the websites.
The latest trend gaining momentum in the market is Crowdfunding campaigns used as an avenue for crowdsourcing. Every startup business expects to cover up all the holes that startups in the past might have missed. One of the best ways to crowdsource is by launching a crowdfunding campaign. By having a crowdfunding campaign, an entrepreneur can engage the target audience and receive comments, feedback, and ideas. This feedback can be extremely valuable as it helps understand aspects of their business that were not thought before. This could lead to a better product or service and could inspire some other ideal on similar lines.
Further, the report states that one of the major factors hindering the growth of this market is Time consuming. Crowdfunding can be a tedious and painstaking task to get it right. Entrepreneurs will have to give themselves at least three months of preparation time. If fund-raising depends on the crowdfunding campaign, entrepreneurs will require an initial investment in marketing assets. Depending on how much funds the company wishes to generate, the commitment for crowdfunding campaign can be generated. If generating high revenue is the only purpose, then crowdfunding might not always be the right option.