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Crowdfunded Music Projects Raised $202.5 Million In 2012 [STUDY]

image from www.projects2crowdfund.comGlobal crowdfunding grew 81% to $2.7 billion in 2012, successfully funding more than 1 million campaigns, according to a new report from Massolution, a consultancy specializing in the crowdsourcing and crowdfunding industries. Projects related directly to music and the recording arts represented 7.5% of total funding, or $202.5 million.

Films & Performing Arts projects represented 11.9% of funding globally.  Only the Social Causes (30%) and Business & Entrepreneurship (16.9%) categories attracted more dollars.

North America and Europe account for over 95% of the total market, according to the study which surveyed 308 active crowdfunding platforms (CFPs) worldwide.

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More Growth Expected

Massolution forecasts an increase in global crowdfunding volumes in 2013, to $5.1 billion.   

CEO of massolution, Carl Esposti states: "While lending-, donation-, and reward-based crowdfunding have thus far been leading this global financial revolution, equity-based crowdfunding is about to take center stage in the U.S. The JOBS Act, which will allow non-accredited investors to make investments in exchange for equity, is expected to go into effect by the end of 2013."

Growth Rates By Region

Although crowdfunding offers a growing number of countries opportunities to access funds, North America and Europe raised much more capital than platforms in other regions.

  • North America: crowdfunding volumes grew 105% to $1.6 billion
  • Europe: crowdfunding volumes grew 65% to $945 million
  • In total, all other markets grew close to 125%

Growth Rates By Models

The growth in funding volumes was primarily driven by lending- and donation-based crowdfunding, and by SME adoption of reward-based crowdfunding. The growth in lending volumes mainly stemmed from crowdfunded micro-loans and community-driven loans to local SMEs.

  • Donation- and Reward-based crowdfunding grew 85% to $1.4 billion
  • Lending-based crowdfunding grew 111% to $1.2 billion
  • Equity-based crowdfunding grew 30% to $116 million