Reward-Based Crowdfunding - Denmark

Denmark

Highlights

in Denmark, a country known for its strong economy and innovative business environment, is projected to reach a total transaction value of US$2.90m in the Reward-Based Crowdfunding market by 2024.
When compared globally, it is interesting to note that the United States leads with a transaction value of US$465m in the same year.
Denmark's Crowdfunding market is witnessing a surge in interest from tech startups seeking alternative capital raising options.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Crowdfunding market in Denmark has been experiencing steady growth in recent years, driven by customer preferences for alternative financing options, trends in the market, and local special circumstances.

Customer preferences: Danish consumers have shown a growing interest in crowdfunding as a means to support innovative projects and businesses. They appreciate the transparency and direct involvement that crowdfunding platforms offer, allowing them to contribute to projects they believe in. Additionally, crowdfunding provides an opportunity for individuals to diversify their investment portfolios and potentially earn attractive returns.

Trends in the market: One of the key trends in the Danish crowdfunding market is the rise of equity-based crowdfunding. This allows individuals to invest in startups and early-stage companies in exchange for equity ownership. This trend has been fueled by a supportive regulatory environment that encourages crowdfunding and provides protections for both investors and entrepreneurs. Equity-based crowdfunding has gained popularity as it offers the potential for significant returns on investment, particularly in sectors such as technology and renewable energy. Another trend in the Danish crowdfunding market is the emergence of niche platforms catering to specific sectors or causes. These platforms allow individuals to support projects in areas they are passionate about, such as social entrepreneurship, art, or sustainability. This trend reflects the growing demand for crowdfunding platforms that align with personal values and interests.

Local special circumstances: Denmark has a strong entrepreneurial culture and a supportive ecosystem for startups and small businesses. This has created a fertile ground for crowdfunding, as entrepreneurs seek alternative funding options to traditional bank loans or venture capital. Crowdfunding allows them to access capital quickly and directly from a wide pool of potential investors. Furthermore, Denmark has a high level of internet penetration and digital literacy, making it easier for individuals to participate in crowdfunding campaigns. The country's strong social welfare system also provides a safety net, reducing the perceived risk of investing in startups or innovative projects.

Underlying macroeconomic factors: The Danish economy has been performing well in recent years, with stable GDP growth and low unemployment rates. This positive economic environment has increased disposable income and consumer confidence, making individuals more willing to invest in crowdfunding campaigns. Additionally, low interest rates have made traditional savings accounts less attractive, leading individuals to seek alternative investment opportunities such as crowdfunding. In conclusion, the Crowdfunding market in Denmark is developing due to customer preferences for transparency and direct involvement, the emergence of equity-based crowdfunding and niche platforms, the country's supportive entrepreneurial ecosystem, and favorable macroeconomic conditions. These factors have created a thriving crowdfunding market in Denmark, offering opportunities for both investors and entrepreneurs.

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.