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​Chart of the day: US dominates rewards-based crowd finance

January 19, 2017 • By TAB team

Today we’re taking a look at some analytics that show a quite startling comparison between two key crowd finance markets on opposite sides of the Atlantic.

Today we’re taking a look at some analytics that show a quite startling comparison between two key crowd finance markets on opposite sides of the Atlantic.

Using data analytics inside Crowdsurfer Pro, we've compared the UK and the US crowd finance markets for reward-based campaigns that raised over $50,000 in 2016.

So let's look at the analysis for the UK and the US in 2016:

These numbers reveal the huge difference in approaches to crowd finance being undertaken in the UK and the US.

The US is clearly scaling up rewards-based financing, with behemoth US platforms like Indiegogo and Kickstarter continuing to make waves.

This form of crowd finance - and the growth of the platforms that support it - has been less voluminous in the UK, with more traditional forms (such as debt and equity crowd finance) gaining traction faster.

However, there does seem to be a perception that this trend might be about to change, with mainland Europe’s appetite for rewards-based crowd finance increasing, especially in countries like Spain, Germany and Finland. The large US platforms are also looking at Europe and the UK as growth markets in the coming years.

The other interesting insight to pull from this data is the high proportion of US campaigns that achieved their funding targets. Only 4% missed out, which, in comparison to other crowd finance sectors, is extremely impressive.

With that high success rate in mind, it seems likely that the UK market may well follow the US market, adopting and growing this consumer-friendly form of crowd finance in 2017.