Reward-Based Crowdfunding - Cyprus

Cyprus

Highlights

The Reward-Based Crowdfunding market in Cyprus is projected to reach a total transaction value of US$847.10 in 2024.
When comparing globally, it is evident that the United States leads with a transaction value of US$465m in 2024.
Cyprus sees a rising trend in real estate crowdfunding, offering investors opportunities to participate in property developments through online platforms.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Crowdfunding market in Cyprus has been experiencing significant growth in recent years, driven by customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Customers in Cyprus are increasingly turning to crowdfunding as a way to support innovative projects and ideas. Crowdfunding provides individuals with the opportunity to contribute to projects they believe in and have a direct impact on their success. This sense of involvement and community engagement is highly valued by customers in Cyprus, who are seeking more meaningful and personalized ways to support causes and businesses.

Trends in the market: One of the key trends in the crowdfunding market in Cyprus is the rise of equity-based crowdfunding. This form of crowdfunding allows individuals to invest in startups and early-stage companies in exchange for equity or shares. This trend is driven by the increasing number of entrepreneurs and startups in Cyprus who are looking for alternative sources of funding to fuel their growth. Equity-based crowdfunding provides a platform for these companies to raise capital from a large pool of investors, while also giving investors the opportunity to diversify their investment portfolios and potentially earn high returns. Another trend in the market is the growing popularity of reward-based crowdfunding. This type of crowdfunding allows individuals to contribute to a project in exchange for a non-financial reward, such as a product or service. This trend is driven by the increasing number of creative projects, such as art exhibitions, music albums, and film productions, seeking funding in Cyprus. Customers are attracted to the idea of supporting these projects and receiving a unique reward in return, which adds value to their contribution.

Local special circumstances: One of the special circumstances in Cyprus that has contributed to the growth of the crowdfunding market is the limited access to traditional sources of funding for small businesses and startups. Cyprus has a relatively small banking sector, and obtaining loans from banks can be challenging for entrepreneurs and small businesses. Crowdfunding provides an alternative financing option for these entities, allowing them to raise funds from a wider pool of investors.

Underlying macroeconomic factors: The economic recovery of Cyprus following the financial crisis has also played a role in the development of the crowdfunding market. As the economy has stabilized and business confidence has improved, more entrepreneurs and startups have emerged, creating a demand for alternative sources of funding. Additionally, the increasing use of digital platforms and the growing internet penetration rate in Cyprus have made crowdfunding more accessible and convenient for both entrepreneurs and investors. In conclusion, the crowdfunding market in Cyprus is experiencing growth due to customer preferences for more meaningful and personalized ways of supporting projects, the rise of equity-based and reward-based crowdfunding, limited access to traditional funding sources, and the underlying macroeconomic factors of economic recovery and digitalization.

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.