Reward-Based Crowdfunding - Peru

Peru

Highlights

The Reward-Based Crowdfunding market in Peru is projected to reach a total transaction value of US$725.30k in 2024.
When comparing globally, it is evident that the United States leads with a transaction value of US$465m in 2024.
Peru's Crowdfunding market is gaining traction, providing local entrepreneurs with alternative capital-raising opportunities in a growing economy.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Crowdfunding market in Peru has been experiencing significant growth in recent years, driven by customer preferences for alternative financing options and a favorable local economic environment.

Customer preferences: Peruvian consumers have shown a growing interest in crowdfunding as a way to support innovative projects and businesses. This preference can be attributed to several factors. Firstly, crowdfunding provides individuals with the opportunity to contribute to projects they are passionate about and feel a sense of ownership in their success. Secondly, crowdfunding platforms often offer unique rewards or perks to backers, such as early access to products or exclusive experiences, which further incentivize participation. Lastly, the transparency and accountability inherent in crowdfunding campaigns appeal to consumers who value social impact and want to see tangible results from their investments.

Trends in the market: One of the key trends in the Peruvian crowdfunding market is the rise of reward-based crowdfunding. This type of crowdfunding allows individuals to contribute funds to a project in exchange for a non-financial reward, such as a product or service. This trend is fueled by the increasing number of entrepreneurs and small businesses seeking funding for their ventures. By offering attractive rewards, these businesses are able to attract a larger pool of backers and generate the necessary capital to bring their ideas to life. Another trend in the Peruvian crowdfunding market is the emergence of equity-based crowdfunding. This type of crowdfunding allows individuals to invest in a business in exchange for equity or shares. Equity-based crowdfunding has gained traction in Peru due to regulatory changes that have made it easier for small and medium-sized enterprises to raise capital through this method. This trend is particularly appealing to investors who are looking for opportunities to diversify their portfolios and potentially earn significant returns.

Local special circumstances: Peru's growing middle class and increasing internet penetration have played a significant role in the development of the crowdfunding market. As more Peruvians gain access to the internet and become familiar with online platforms, the potential pool of crowdfunding backers continues to expand. Additionally, the government has implemented initiatives to promote entrepreneurship and innovation, creating a favorable environment for crowdfunding campaigns to thrive.

Underlying macroeconomic factors: Peru's stable economic growth and low inflation rate have provided a solid foundation for the crowdfunding market to flourish. The country has experienced steady GDP growth in recent years, which has boosted consumer confidence and disposable income. This economic stability has made Peruvians more willing to invest in crowdfunding campaigns and support local businesses. In conclusion, the Crowdfunding market in Peru is experiencing growth due to customer preferences for alternative financing options, such as reward-based and equity-based crowdfunding. The rise of the middle class, increasing internet penetration, and government support for entrepreneurship have created a favorable environment for crowdfunding campaigns to succeed. Peru's stable economic growth and low inflation rate have also contributed to the development of the crowdfunding market.

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.