Continuing our exploration into the types of financing offered by the Crowd Finance industry in 2015, this Insight focuses on raises between USD 50k and USD 250k.
We analysed over 19.7k individual and successful raises of $50-250k in 2015 from 216 marketplaces around the world. The average raise was $116k and the the most popular raise amount was in the $50-70k range (25% of total). In terms of fundraise spread, the chart below shows a decline in the volume of raises as the funding amounts gets larger (with a couple of exceptions that we come back to). The largest drop is between $70-90k and $90-110k, which seems to be driven by a significant decline in raises attributed to UK platforms over $90k.
Lending accounts for the largest proportion of raises within this funding range (77%) and is followed by rewards (12%). Equity crowdfunding, whilst small, accounts for a more meaningful proportion than for raises under $50k (see our $0-50k Insight).
In terms of total raised, the larger average amount in each sub-range, makes up for the difference in number of individual raises to present a more staged spread. The exceptions identified above, are more pronounced in the chart below.
The unexpected increase in raises between $150-170k is accounted for by the Chinese marketplace lending platform 91wangcai, which funds a high proportion of its loans (50%) within this range. The $230-250k upturn, sees the introduction of commercial lending platforms targeted towards property, manufacturing and engineering.