Crowdinvesting, also known as equity crowdfunding, has been gaining popularity in the Americas region in recent years. This alternative form of investment allows individuals to invest in early-stage companies and startups in exchange for equity.
Customer preferences: One of the main reasons for the development of the Crowdinvesting market in the Americas is the changing preferences of investors. Traditional investment options such as stocks and bonds have become less attractive due to low returns and increased market volatility. Investors are now seeking alternative investment opportunities that offer higher potential returns and the chance to support innovative projects. Crowdinvesting provides individuals with the opportunity to invest in promising startups and potentially earn significant returns if the company succeeds.
Trends in the market: The Crowdinvesting market in the Americas is characterized by several key trends. Firstly, there has been a rise in the number of platforms that facilitate crowdinvesting campaigns. These platforms act as intermediaries between investors and startups, providing a platform for companies to raise funds and investors to find investment opportunities. This trend has made it easier for startups to access capital and has increased the number of investment opportunities available to individuals. Secondly, there has been a shift towards sector-specific crowdinvesting platforms. These platforms focus on specific industries such as technology, healthcare, or renewable energy. This trend allows investors to invest in sectors that align with their interests and expertise, increasing the likelihood of successful investments. It also provides startups with access to investors who have domain knowledge and can provide valuable insights and connections.
Local special circumstances: The development of the Crowdinvesting market in the Americas is also influenced by local special circumstances. For example, in the United States, the Jumpstart Our Business Startups (JOBS) Act, passed in 2012, has played a significant role in promoting crowdinvesting. The act relaxed regulations and allowed startups to raise funds from non-accredited investors, opening up the market to a larger pool of potential investors. In Canada, the introduction of the Start-up Visa Program has attracted foreign entrepreneurs and investors to the country. This has created a favorable environment for crowdinvesting, as startups can access a diverse range of investors and investors can support innovative projects from around the world.
Underlying macroeconomic factors: The development of the Crowdinvesting market in the Americas is also influenced by underlying macroeconomic factors. The region has a thriving startup ecosystem, with many innovative companies emerging in sectors such as technology, healthcare, and renewable energy. These startups require capital to fund their growth and development, creating opportunities for crowdinvestors. Additionally, the Americas region has a large population of high-net-worth individuals who are looking for investment opportunities outside of traditional asset classes. Crowdinvesting provides these individuals with a unique opportunity to diversify their investment portfolios and support promising startups. In conclusion, the Crowdinvesting market in the Americas is developing due to changing customer preferences, the emergence of new trends in the market, local special circumstances, and underlying macroeconomic factors. As more individuals seek alternative investment options and startups look for capital to fuel their growth, crowdinvesting is likely to continue to grow in popularity in the Americas region.
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.
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