Crowdfunding - Nigeria | Statista Market Forecast

Transaction value in the Crowdfunding market is projected to reach US$36.91k in 2024.
Transaction value is expected to show an annual growth rate (CAGR 2024-2028) of 5.89% resulting in a projected total amount of US$46.40k by 2028.
The average funding per campaign in the Crowdfunding market amounts to US$22.55 in 2024.
From a global comparison perspective it is shown that the highest transaction value is reached United States (US$464.80m in 2024).

Definition:

Crowdfunding, otherwise know as reward-based Crowdfunding is a financing form independent from financial institutions, location of the campaign creator or investor. Reward-based Crowdfunding campaigns can be initiated for a wide range of different purposes such as product launches, art-, music- and film-financing, software development, scientifc research etc. Usually there is a financing goal defined by funding volume and time to reach this goal for every campaign. The campaign creator publishes engaging content (e.g. photos, videos, text) that explain the goal and motivation of the fundraising. Almost everyone can participate in reward-based Crowdfunding campaigns as an investor. The only prerequisite is a valid payment account.

Additional Information:

Keyplayers in the reward-based Crowdfunding campaigns are Kickstarter and Indiegogo.

Reward-based Crowdfunding
Pre-financing of products, art, music and films, software or scientific research
e.g. Kickstarter, Indiegogo

Traditional venture capital investments
Equity-based Crowdfunding (see Crowdinvesting)
Lending-based Crowdfunding (see Crowdlending)

Currently, the reward-based crowdfunding market is experiencing steady growth as more and more entrepreneurs, creators, and artists turn to crowdfunding as a means of financing their projects. Some current trends in this market include the rise of niche crowdfunding platforms that cater to specific industries or interests, such as gaming or fashion, and the increasing popularity of equity crowdfunding, which allows investors to own a stake in the companies they support.
The growth of the reward-based crowdfunding market can be attributed to several factors, including the growing acceptance of crowdfunding as a legitimate means of fundraising, the increasing accessibility of crowdfunding platforms, and the rise of social media, which allows creators to promote their campaigns to a wider audience. Additionally, the COVID-19 pandemic has accelerated the trend towards online fundraising, as more people turn to crowdfunding to support small businesses and independent creators affected by lockdowns and economic downturns.
Looking ahead, the reward-based crowdfunding market is expected to continue its positive growth trajectory. This growth will be driven by factors such as the increasing availability of mobile crowdfunding apps, the growth of the gig economy and freelance work, and the rise of impact investing, which seeks to support socially responsible projects. Additionally, as crowdfunding platforms become more established, we may see a consolidation of the market, with larger platforms acquiring smaller ones to increase their market share.

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Digital market, in a PDF format.