D.I.Y.

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.

crowdfunding

click on image to enlarge

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

Share on: