Reward-Based Crowdfunding - Malta

Malta

Highlights

The Reward-Based Crowdfunding market in Malta is projected to reach a total transaction value of US$120.10k by 2024.
When comparing globally, the United States leads with a transaction value of US$465m in 2024.
Malta's Crowdfunding market is gaining traction as an alternative capital-raising avenue for tech startups and real estate projects.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

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

Customer preferences: Maltese consumers have shown a growing interest in crowdfunding as a means to support innovative projects and start-ups. This preference can be attributed to the desire to be part of the entrepreneurial journey and the potential for high returns on investment. Crowdfunding platforms provide individuals with the opportunity to invest in projects they believe in and contribute to the growth of the local economy. Additionally, crowdfunding allows individuals to diversify their investment portfolios and support causes that align with their values.

Trends in the market: One of the key trends in the crowdfunding market in Malta is the rise of equity crowdfunding. This form of crowdfunding allows individuals to invest in early-stage companies in exchange for equity ownership. This trend is driven by the increasing number of start-ups in Malta and the desire for entrepreneurs to access funding without relying solely on traditional sources such as banks or venture capitalists. Equity crowdfunding provides a platform for start-ups to showcase their potential and attract investment from a wider pool of individuals. Another trend in the market is the emergence of niche crowdfunding platforms catering to specific industries or causes. These platforms focus on areas such as renewable energy, social impact projects, and creative arts. This trend reflects the growing demand for more targeted crowdfunding options that allow individuals to support projects that align with their personal interests or values. Niche platforms also provide a more curated experience for both project creators and investors, fostering a sense of community and trust.

Local special circumstances: One of the factors contributing to the development of the crowdfunding market in Malta is the country's small size and close-knit community. The relatively small population allows for easier networking and collaboration among entrepreneurs, investors, and supporters. This sense of community creates an environment conducive to crowdfunding, as individuals feel more connected to the projects and can easily engage with project creators. Furthermore, Malta's reputation as a hub for innovation and technology has attracted entrepreneurs and investors from around the world. The government has implemented policies and initiatives to support the growth of the start-up ecosystem, including tax incentives and funding programs. These efforts have created a favorable environment for crowdfunding platforms to thrive and attract both local and international projects.

Underlying macroeconomic factors: The overall economic stability and growth in Malta have also contributed to the development of the crowdfunding market. The country has experienced positive GDP growth and low unemployment rates, creating a favorable environment for investment and entrepreneurship. Additionally, Malta's strategic location within the European Union provides access to a larger market and potential investors from other EU member states. In conclusion, the Crowdfunding market in Malta is growing due to customer preferences for alternative funding options, the emergence of niche crowdfunding platforms, and the country's local special circumstances. The development of the market is further supported by Malta's favorable macroeconomic factors, including economic stability and government support for the start-up ecosystem. As the crowdfunding market continues to evolve, it is expected to play an increasingly important role in supporting innovation and entrepreneurship in Malta.

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.