Reward-Based Crowdfunding - Romania

Romania

Highlights

The Reward-Based Crowdfunding market in Romania is expected to reach a total transaction value of US$2.15m in 2024.
When comparing globally, it is evident that the United States leads with the highest transaction value of US$465m in 2024.
Crowdfunding platforms in Romania are gaining traction, offering diverse investment opportunities for local entrepreneurs and investors in the capital raising market.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Crowdfunding market in Romania has been steadily growing in recent years, driven by customer preferences for alternative financing options and the increasing popularity of online platforms.

Customer preferences: In Romania, there is a growing interest among individuals and small businesses to explore alternative financing options beyond traditional banks. Crowdfunding provides an avenue for these individuals and businesses to access funds from a large number of people who are willing to invest or contribute to their projects. This allows for greater flexibility and a wider range of funding sources, which can be particularly appealing for those who may not meet the strict criteria of traditional lenders. Additionally, crowdfunding offers the opportunity for individuals to support causes or projects they believe in, creating a sense of community and engagement.

Trends in the market: One of the key trends in the Romanian crowdfunding market is the rise of equity crowdfunding. This form of crowdfunding allows investors to buy shares in a company, giving them a stake in its success. This trend is driven by the increasing number of startups and small businesses in Romania that are seeking funding to fuel their growth. Equity crowdfunding provides these companies with access to a larger pool of potential investors, who can provide not only financial support but also valuable expertise and networks. Another trend in the market is the growth of reward-based crowdfunding. This type of crowdfunding allows individuals or businesses to offer rewards or incentives to those who contribute to their projects. This can range from early access to products or services, exclusive discounts, or even personalized experiences. Reward-based crowdfunding appeals to both individuals who want to support a project they are interested in and those who are looking for unique or limited-edition rewards.

Local special circumstances: Romania has a vibrant entrepreneurial ecosystem, with a growing number of startups and small businesses. However, access to funding can be a challenge for these companies, especially those that are in the early stages of development. Crowdfunding provides an alternative financing option that can help bridge this funding gap and support the growth of innovative ideas and businesses.

Underlying macroeconomic factors: The Romanian economy has been experiencing steady growth in recent years, which has created a favorable environment for crowdfunding. A growing economy means that there is more disposable income available for individuals to invest or contribute to crowdfunding campaigns. Additionally, the increasing digitization of the economy has made it easier for crowdfunding platforms to reach a wider audience and facilitate transactions online. In conclusion, the Crowdfunding market in Romania is developing due to customer preferences for alternative financing options, the rise of equity and reward-based crowdfunding, the local entrepreneurial ecosystem, and the underlying macroeconomic factors. This market is expected to continue growing as more individuals and businesses recognize the benefits and opportunities offered by crowdfunding.

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.