Reward-Based Crowdfunding - Egypt

Egypt

Highlights

The total transaction value in the Reward-Based Crowdfunding market in Egypt is expected to reach US$17.90k in 2024.
When looking at a global perspective, it is evident that the United States leads with the highest transaction value, reaching US$465m in 2024.
In Egypt, Crowdfunding platforms are gaining traction as an alternative capital-raising method for startups and small businesses.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Crowdfunding market in Egypt has been experiencing significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Egyptian consumers have shown a growing interest in supporting innovative projects and startups through crowdfunding platforms. This can be attributed to several factors, including a desire to be part of the entrepreneurial ecosystem, a sense of community engagement, and a willingness to take risks in order to support new ideas and ventures. Additionally, crowdfunding provides individuals with the opportunity to contribute to projects that align with their personal values and interests, allowing them to have a direct impact on the success of these initiatives.

Trends in the market: One of the key trends in the Egyptian crowdfunding market is the emergence of niche platforms catering to specific industries or causes. This allows for a more targeted approach, enabling individuals to support projects that they are passionate about. For example, there are platforms dedicated to funding social impact initiatives, creative arts projects, and technological innovations. This trend reflects the diverse interests and preferences of Egyptian consumers, who are seeking more specialized and personalized crowdfunding experiences. Another trend in the market is the increasing adoption of equity-based crowdfunding. This model allows individuals to invest in startups and small businesses in exchange for equity or shares in the company. This trend is driven by a growing entrepreneurial culture in Egypt, with more individuals looking to invest in early-stage companies and benefit from their potential growth. Equity-based crowdfunding provides an alternative financing option for startups that may struggle to secure traditional funding from banks or venture capitalists.

Local special circumstances: Egypt's entrepreneurial ecosystem has been evolving rapidly in recent years, with a growing number of startups and innovative projects emerging across various industries. This has created a fertile ground for crowdfunding, as entrepreneurs seek alternative sources of funding to support their ventures. Additionally, the government has implemented initiatives to support entrepreneurship and innovation, such as the establishment of startup incubators and accelerators. These initiatives have helped to create a supportive environment for crowdfunding platforms to thrive.

Underlying macroeconomic factors: The Egyptian economy has been experiencing steady growth, with a focus on diversifying sectors and attracting foreign investment. This has resulted in increased job creation and entrepreneurial opportunities, leading to a greater demand for crowdfunding as a means of financing. Additionally, the rise of digital technology and internet penetration in Egypt has made it easier for individuals to access crowdfunding platforms and contribute to projects online. This has further fueled the growth of the crowdfunding market in the country. In conclusion, the Crowdfunding market in Egypt is experiencing growth due to changing customer preferences, such as a desire to support innovative projects and startups, and local special circumstances, including a supportive entrepreneurial ecosystem. The emergence of niche platforms and the adoption of equity-based crowdfunding are key trends in the market. Furthermore, underlying macroeconomic factors, such as economic growth and increased digital connectivity, have contributed to the development of the crowdfunding market in Egypt.

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.