Growth of number of crowdfunding platforms 2007-2011, by category

The statistic shows the growth of the number of crowdfunding platforms, based on a sample of 143 crowdfunding platforms, from 2007 to 2011, by category. Lending based crowdfunding was the smallest category in terms of the number of platforms. Dontation-based crowdfunding and lending-based crowdfunding were growing at a similar pace, the equity-based category, however, was showing the fastest rate of growth. In 2011, the number of equity-based crowdfunding platforms grew by 21 percent.

Growth in the number of crowdfunding platforms

Since the early 2000s when crowdfunding first appeared as ArtistShare in one of its earliest and successful incarnations, the idea has been going from strength to strength. ArtistShare was a pioneer of the crowdfunding movement that was to sweep across America in the years that would follow. The number of crowdfunding platforms continues to show positive levels of growth in the United States and Europe, also showing increasingly encouraging signs further afield in Asia and South America.

Crowdfunding is noteworthy because it constitutes a change or a shift in investing patterns and practice. It is also interesting to notice its increased prominence in the post 2008 financial crisis world of austerity and government belt-tightening. In this climate, crowdfunding platforms have been able to provide alternative means of procuring investment for ventures, projects and ideas. The practice is developing into a widely praised alternative to the standard approach of seeking financial support from the banking sector, from which it has been increasingly difficult to secure investment in the post-crisis system.