Reward-Based Crowdfunding - Panama

The total transaction value in the Reward-Based Crowdfunding market is expected to reach US$142.50k in 2024.
When compared globally, it is evident that the highest transaction value is achieved the United States, with US$465m in 2024.
This data highlights the significance of the Reward-Based Crowdfunding market in Panama.
Panama's capital raising market embraces Crowdfunding, leveraging its strategic location and business-friendly environment to attract diverse investment opportunities.

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 Panama has been experiencing steady growth in recent years, driven by changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Panamanian customers have shown a growing interest in crowdfunding as a means to support innovative projects and startups. They are attracted to the idea of supporting local entrepreneurs and contributing to the development of new products and services. Additionally, crowdfunding offers individuals the opportunity to participate in projects that align with their personal interests and values, creating a sense of community and engagement.

Trends in the market: One notable trend in the Panamanian crowdfunding market is the rise of reward-based crowdfunding platforms. These platforms allow entrepreneurs to offer rewards or incentives to individuals who contribute to their projects. This model has gained popularity as it provides tangible benefits to backers while enabling entrepreneurs to raise funds and generate early customer interest. Moreover, equity crowdfunding has also been gaining traction in Panama, allowing individuals to invest in startups and potentially earn financial returns.

Local special circumstances: Panama's strategic location as a regional financial center and its strong entrepreneurial culture have contributed to the growth of the crowdfunding market. The country serves as a hub for international business and attracts a diverse range of entrepreneurs and investors. Additionally, Panama's relatively small population and close-knit business community create a conducive environment for crowdfunding campaigns to gain visibility and support.

Underlying macroeconomic factors: Several macroeconomic factors have played a role in the development of the crowdfunding market in Panama. The country has experienced sustained economic growth and a stable political environment, providing a favorable backdrop for entrepreneurial activities. Additionally, Panama's high internet penetration rate and increasing smartphone adoption have made it easier for individuals to access crowdfunding platforms and participate in campaigns. Furthermore, the government has implemented supportive policies and regulations to encourage innovation and entrepreneurship, further facilitating the growth of the crowdfunding market. In conclusion, the Crowdfunding market in Panama has been growing steadily due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The rise of reward-based and equity crowdfunding platforms, as well as Panama's strategic location and supportive environment, have contributed to the market's development. As the market continues to evolve, it is expected to play a significant role in supporting innovation and entrepreneurship in Panama.

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.