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What sectors are hot and what’s not in crowd finance?

February 20, 2017 • By TAB team

What sectors are hot and what’s not in crowd finance? Using Crowdsurfer Pro, we can dig deep and find the answer.

What sectors are hot and what’s not in crowd finance?

Using Crowdsurfer Pro, we can dig deep and find the answer.

Of course, lots of factors – including product, marketing, target size and campaign type – affect a campaign’s performance when it comes to raising funds. But, when we explore the data, we notice that success stories are not always from sectors you’d most expect.

The underperformers…

For example, dating apps – sexy, much discussed, with mountains of free publicity – don’t tend to enjoy great success from the crowd.

Former contestant on The Apprentice, Vana Koutsomitis, raised a record $270,600 for her app DatePlay, but other raises in our sample only managed smaller amounts.

Another surprising underperformer is the glamorous world of technology. Campaigns launched to fund products seeking to address the lack of a headphone jack on the iPhone 7 fell short of funding targets, or only raised small amounts.

Dating and technology… you’d expect big things, right?

But, on the whole, the crowd said, “meh”.

Stars of the show…

On the flip side, certain sectors are booming.

Fashion crowd finance is flourishing, with record-breaking raises taking place. For example, BauBax’s 'world’s best travel jacket', with a funding target of $20,000, raised over $9 million on Kickstarter.

We’ve previously written about the success of beer, especially Brewdog, who continue to raise huge amounts of money from the crowd.

Less glamorous sectors are also enjoying success with agribusiness, renewable energy and property investment thriving.

So, why is this?

One reason could be a theme we discussed previously when we looked at beer, where people feel drawn to traditional, passion-fuelled, emotive sectors, like beer and fashion, and struggle to engage with modern, less emotive, sectors that are technology-led, such as apps.

Or, it could be that technology-led sectors are fundamentally disruptive, and, therefore, already have well-established means of raising funds, without the need to ask for help from the crowd.

But that’s just a couple of theories. We’d love to hear your thoughts on why certain sectors do better than others in crowd finance.

You can dig into the data and find out more for yourself on Crowdsurfer Pro.

Dive in and have a read about specific sectors in our Industry Insights blog series: