Reward-Based Crowdfunding - Mexico

Mexico

Highlights

The Reward-Based Crowdfunding market in Mexico is expected to reach a total transaction value of US$2.62m by 2024.
When compared globally, the United States leads with a transaction value of US$465m in 2024.
In Mexico, Crowdfunding platforms are gaining momentum as a popular choice for capital raising among small and medium-sized enterprises.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Crowdfunding market in Mexico has been experiencing significant growth in recent years.

Customer preferences: Mexican consumers are increasingly turning to crowdfunding as a means to support innovative projects and start-ups. This is driven by a desire to be part of something new and exciting, as well as a growing awareness of the potential returns that can be achieved through crowdfunding investments. Additionally, crowdfunding provides an opportunity for individuals to support causes and initiatives that align with their personal values and interests.

Trends in the market: One of the key trends in the Mexican crowdfunding market is the rise of equity crowdfunding. This allows individuals to invest in start-ups and small businesses in exchange for equity or shares in the company. Equity crowdfunding has gained popularity due to its potential for high returns on investment, as well as the opportunity to support local entrepreneurs and contribute to the growth of the Mexican economy. Another trend in the market is the emergence of crowdfunding platforms that specialize in specific sectors or industries. For example, there are crowdfunding platforms in Mexico that focus on supporting projects in the arts, technology, and social impact sectors. This specialization allows individuals to support causes and projects that are particularly meaningful to them, and provides a more targeted and personalized crowdfunding experience.

Local special circumstances: Mexico has a vibrant entrepreneurial ecosystem, with a growing number of start-ups and small businesses looking for funding. However, traditional sources of financing, such as banks and venture capital firms, can be difficult for these businesses to access. Crowdfunding provides an alternative funding option for entrepreneurs, allowing them to raise capital directly from the public. This has led to a surge in crowdfunding campaigns in Mexico, as entrepreneurs seek to tap into the growing pool of crowdfunding investors.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the growth of the crowdfunding market in Mexico. The country has experienced a period of economic stability and growth in recent years, which has created a favorable environment for entrepreneurship and innovation. Additionally, the rise of digital technology and social media has made it easier for individuals to discover and participate in crowdfunding campaigns. This has increased the visibility and accessibility of crowdfunding, driving its popularity among Mexican consumers. In conclusion, the crowdfunding market in Mexico is growing rapidly due to customer preferences for innovative projects and investment opportunities, as well as the emergence of specialized crowdfunding platforms. Local special circumstances, such as a vibrant entrepreneurial ecosystem and limited access to traditional financing, have also contributed to the growth of crowdfunding in Mexico. Furthermore, underlying macroeconomic factors, such as economic stability and the rise of digital technology, have created a favorable environment for the development of the crowdfunding market in the country.

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.