Crowdinvesting - Eastern Asia

Eastern Asia

Highlights

The Crowdinvesting market in Eastern Asia is expected to reach a total transaction value of US$43.26m in 2024.
When comparing globally, the United Kingdom is projected to have the highest transaction value, amounting to US$608m in the same year.
In South Korea, the crowdinvesting market is rapidly expanding, driven by tech-savvy investors seeking opportunities in innovative startups.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Crowdinvesting market in Eastern Asia has experienced significant growth in recent years, driven by a combination of customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in Eastern Asia have played a crucial role in the development of the Crowdinvesting market.

Investors in this region are increasingly looking for alternative investment opportunities that offer higher returns compared to traditional investment options. Crowdinvesting provides a platform for individuals to invest in startups and small businesses, giving them the opportunity to participate in the growth potential of these companies. Additionally, the younger generation in Eastern Asia is more open to taking risks and investing in innovative ideas, further driving the demand for Crowdinvesting.

Trends in the market have also contributed to the growth of Crowdinvesting in Eastern Asia. The rise of technology and the internet has made it easier for individuals to access Crowdinvesting platforms and invest in projects. Online platforms have become more user-friendly and transparent, allowing investors to make informed decisions.

Furthermore, the success stories of Crowdinvesting campaigns and the positive returns generated by early investors have attracted more individuals to participate in this form of investment. Local special circumstances in Eastern Asia have also played a role in the development of the Crowdinvesting market. The region is home to a vibrant startup ecosystem, with countries like China, Japan, and South Korea producing a significant number of innovative companies.

These startups often face challenges in accessing traditional funding sources, making Crowdinvesting an attractive option for them to raise capital. Additionally, the strong entrepreneurial culture in Eastern Asia has created a supportive environment for crowdfunding campaigns, with individuals willing to back local businesses and contribute to their success. Underlying macroeconomic factors have also contributed to the growth of Crowdinvesting in Eastern Asia.

The region has experienced rapid economic growth in recent years, leading to a rise in disposable income and wealth. This has created a pool of potential investors who are looking for investment opportunities beyond traditional financial instruments. Additionally, low interest rates in the region have made it less attractive for individuals to keep their money in savings accounts, leading them to seek higher returns through alternative investment options like Crowdinvesting.

In conclusion, the Crowdinvesting market in Eastern Asia has experienced significant growth due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. As more individuals in the region seek higher returns and innovative investment opportunities, Crowdinvesting is likely to continue its upward trajectory in Eastern Asia.

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.