Reward-Based Crowdfunding - Belgium

The Reward-Based Crowdfunding market in Belgium is expected to see a total transaction value of US$4.11m by 2024.
When compared globally, the United States leads with a transaction value of US$465m in 2024.
Belgium's Crowdfunding market is gaining traction among startups and SMEs as an alternative capital-raising avenue, fostering entrepreneurial growth and innovation in the country.

Definition:

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:

Key players 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)

The Crowdfunding market in Belgium has witnessed significant growth in recent years, driven by changing customer preferences and favorable local circumstances.

Customer preferences: Belgian customers are increasingly turning to crowdfunding as a way to support innovative projects and ideas. Crowdfunding platforms provide individuals with the opportunity to contribute to projects they believe in, while also potentially earning a return on their investment. This appeals to a wide range of customers, from tech-savvy millennials to older individuals looking for alternative investment opportunities. Additionally, crowdfunding allows customers to have a direct impact on the success of a project, which is a key driver of its popularity.

Trends in the market: One of the key trends in the Belgian crowdfunding market is the rise of reward-based crowdfunding. This type of crowdfunding allows individuals to contribute to a project in exchange for a reward, such as a product or service. This trend is particularly prevalent in the creative and technology sectors, where entrepreneurs and artists are able to showcase their work and raise funds from a global audience. This type of crowdfunding not only provides financial support for projects, but also helps to build a community of supporters and potential customers. Another trend in the Belgian crowdfunding market is the emergence of equity crowdfunding. This type of crowdfunding allows individuals to invest in a company in exchange for equity or shares. Equity crowdfunding has gained traction in Belgium due to the increasing number of startups and small businesses looking for alternative sources of funding. This type of crowdfunding not only provides capital for these businesses, but also allows investors to potentially earn a return on their investment if the company succeeds.

Local special circumstances: Belgium's central location in Europe and its strong entrepreneurial culture have contributed to the growth of the crowdfunding market. The country's proximity to other European countries allows Belgian entrepreneurs to access a larger pool of potential investors and customers. Additionally, Belgium has a supportive regulatory environment for crowdfunding, with clear rules and regulations in place to protect both investors and entrepreneurs. This has helped to build trust in the crowdfunding market and attract a wider range of participants.

Underlying macroeconomic factors: The growth of the crowdfunding market in Belgium can also be attributed to underlying macroeconomic factors. The country has a stable economy and a high level of disposable income, which provides individuals with the financial means to contribute to crowdfunding projects. Additionally, the low interest rate environment in Belgium has made traditional investment options less attractive, leading individuals to seek out alternative investment opportunities such as crowdfunding.

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 Financial market, in a PDF format.

Crowdfunding is the collective effort of a large number of individuals who network and pool small amounts of capital to finance a new or existing business venture. Each campaign is set for a goal amount of money and a fixed timeframe, each day is counted down and the money raised will be tallied up for visitors to follow its success. The size of the global crowdfunding market is growing and the largest markets are North America and Asia.