Reward-Based Crowdfunding - GCC | Statista Market Forecast

The Reward-Based Crowdfunding market in the GCC country is expected to see a total transaction value of US$63.09k by 2024.
When compared globally, the United States leads with a projected transaction value of US$465m in 2024.
In the GCC, Crowdfunding platforms are gaining traction as an alternative capital raising method for startups and small businesses.

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 the GCC has been experiencing significant growth in recent years.

Customer preferences: One of the main reasons for the growth of the Crowdfunding market in the GCC is the increasing preference of individuals to support innovative projects and startups. Crowdfunding provides a platform for individuals to contribute to projects that they believe in, allowing them to have a direct impact on the success of these ventures. This has led to a surge in the number of people participating in crowdfunding campaigns in the GCC.

Trends in the market: One of the key trends in the Crowdfunding market in the GCC is the rise of equity-based crowdfunding. This type of crowdfunding allows individuals to invest in startups and small businesses in exchange for equity or shares in the company. Equity-based crowdfunding has gained popularity in the GCC as it provides individuals with the opportunity to invest in promising startups and potentially earn significant returns on their investments. Another trend in the Crowdfunding market in the GCC is the increasing use of crowdfunding for social causes and charitable projects. Many individuals in the region are actively seeking ways to contribute to social causes and make a positive impact on their communities. Crowdfunding platforms have provided a convenient and effective way for individuals to donate to charitable projects and support social initiatives.

Local special circumstances: The GCC region is known for its high levels of wealth and disposable income. This has created a favorable environment for the growth of the Crowdfunding market, as individuals have the financial means to contribute to crowdfunding campaigns. Additionally, the GCC has a strong culture of entrepreneurship, with many individuals looking to support and invest in innovative startups.

Underlying macroeconomic factors: The Crowdfunding market in the GCC is also influenced by underlying macroeconomic factors. The region has been diversifying its economy and reducing its reliance on oil, which has led to increased investment in non-oil sectors such as technology and innovation. This has created a fertile ground for crowdfunding campaigns, as startups in these sectors are seeking funding to fuel their growth. Furthermore, the GCC governments have been supportive of entrepreneurship and innovation, implementing policies and initiatives to encourage the growth of startups. This has created a favorable regulatory environment for crowdfunding platforms and campaigns, allowing them to thrive in the region. In conclusion, the Crowdfunding market in the GCC is experiencing significant growth due to the increasing preference of individuals to support innovative projects and startups. The rise of equity-based crowdfunding and the use of crowdfunding for social causes are also contributing to the growth of the market. The high levels of wealth and disposable income in the region, along with the supportive macroeconomic factors, have created a favorable environment for the growth of the Crowdfunding market in the GCC.

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.