News

How many crowd finance platforms succeed/fail?

April 11, 2016 • By TAB team


Crowd finance is a fresh and disruptive industry, so we regularly see innovative and exciting platforms cropping up. The industry is young and platforms are still figuring out the lay of the land; inevitably some will get it wrong. So what are the stats behind it all?

Crowd finance is a fresh and disruptive industry, so we regularly see innovative and exciting platforms cropping up. The industry is young and platforms are still figuring out the lay of the land; inevitably some will get it wrong. So what are the stats behind it all?

As of 31 Dec 2015, more than 2,100 crowd finance platforms had been launched across 88 countries (exc. China). 94% of the market (by number of platforms) was founded post the 2008 banking crisis and 70% post 2011. Of the 2,100, 87% (1,819) are still active and 13% (283) have ceased operating (as shown below).

To date, the years 2013 (337) and 2014 (238) experienced the greatest number of platform launches. In terms of industry growth rate, the most significant jumps occurred in 2011 (46%) and 2012 (49%).

More recently the number of platform launches has begun to decline, although in 2014 and 2015 there were still a combined 627 new platforms started.



Of the platforms no longer operating, 40% of them were launched in 2012 and 2013. The lower death rate of platforms launched in 2014 and 2015 indicates that they are still using initial funding and benefitting from the lowering of costs to operate a platform. We would expect these numbers to increase over the coming years.