Reward-Based Crowdfunding - Eastern Europe

Eastern Europe

Highlights

The Reward-Based Crowdfunding market in Eastern Europe is projected to reach a total transaction value of US$7.77m in 2024.
When comparing this figure globally, it is evident that the United States leads with a transaction value of US$465m in 2024.
In Eastern Europe, Poland is experiencing a surge in equity crowdfunding campaigns as a popular method for capital raising among start-ups.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Crowdfunding market in Eastern Europe is experiencing significant growth and development.

Customer preferences: Customers in Eastern Europe are increasingly turning to crowdfunding as a means of financing their projects and ideas. This is driven by several factors, including a desire for greater control over their own ventures, a lack of access to traditional funding sources, and a growing entrepreneurial spirit. Additionally, customers in Eastern Europe are attracted to the transparency and community aspect of crowdfunding platforms, as they allow for direct interaction and engagement with potential backers.

Trends in the market: One notable trend in the Crowdfunding market in Eastern Europe is the rise of reward-based crowdfunding. This type of crowdfunding allows individuals to offer rewards or incentives to backers in exchange for their financial support. This has proven to be particularly popular in Eastern Europe, as it provides customers with the opportunity to not only raise funds for their projects, but also to build a loyal customer base and generate buzz around their ideas. Another trend in the market is the increasing popularity of equity-based crowdfunding. This type of crowdfunding allows individuals to raise funds by offering investors a stake in their business. This trend is driven by a growing interest in entrepreneurship and investment opportunities in Eastern Europe, as well as a desire for alternative investment options.

Local special circumstances: Eastern Europe is home to a diverse range of countries, each with its own unique cultural and economic landscape. This diversity is reflected in the Crowdfunding market, as different countries in Eastern Europe have varying levels of crowdfunding activity and regulations. Some countries, such as Poland and Estonia, have seen significant growth in their crowdfunding sectors, while others are still in the early stages of development.

Underlying macroeconomic factors: The development of the Crowdfunding market in Eastern Europe is also influenced by underlying macroeconomic factors. Economic growth, technological advancements, and government policies all play a role in shaping the crowdfunding landscape. For example, countries with strong economic growth and supportive government policies are more likely to have a thriving crowdfunding sector. Likewise, advancements in technology, such as the widespread adoption of smartphones and internet connectivity, have made it easier for individuals to participate in crowdfunding campaigns. In conclusion, the Crowdfunding market in Eastern Europe is experiencing growth and development driven by customer preferences for greater control and transparency, as well as the rise of reward-based and equity-based crowdfunding. Local special circumstances, such as cultural and economic differences, also influence the market, while underlying macroeconomic factors such as economic growth and government policies shape its trajectory. Overall, the Crowdfunding market in Eastern Europe presents opportunities for both entrepreneurs and investors alike.

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.