Visualizing the Global Crowdinvesting Industry
May 22, 2013 10:37 am | Jonathan Sandlund |View Original Post|
Investment crowdfunding, crowdfund investing, crowdinvesting—I’m at ends!—whichever your preferred term, one thing’s for sure: it’s taking off globally. Platforms are expanding throughout Europe like wildfire. Just as quickly as supportive legislation can be passed. And in the last month we’ve seen an exciting uptick in activity in Asia. Eureeca launched its equity platform in the Middle-East, SeedAsia in China, and CrowdBaron in Hong Kong.
I’ve been tracking this activity globally, to the best of my ability at least. (It’s becoming increasingly difficult to keep up!) The result is a database of 150+ platforms. I’ve included platforms that either (i) currently support security crowdfunding or (ii) may have plans to do so in the future. Each platform is classified by its security type, target addressable market, and headquarter location. A few things to note.
- Includes reward-based platforms in the U.S. that may support investments (as legislation permits). These platforms are classified as “Reward/Investment.”
- Target addressable market is based on best judgement. Imperfect at times, as some platforms are going after multiple markets.
- Blended = multiple security types (e.g. Localstake supports debt, equity and royalty-based transactions)
- Source data here!
Global Crowdinvesting Industry
The majority of platforms are in Europe and America. While there are hundreds, actually thousands, of reward-based platforms across other geographies—South America for example—very few are investment-based. The necessary legislation doesn’t exist.
Yet.
We can expect the continued success across Europe, as well as the eventual implementation in the U.S., to accelerate this change. The thing about investment crowdfunding, every country in the world has a vested interest in supporting it. It keeps capital local, creates opportunity, and empowers businesses and investors. It’s the ultimate bottom-up solution to supporting innovating and job-creating entrepreneurs with the private capital markets they need to thrive. (On that note, if you’re working on bringing crowdfund investing to your geography, get in touch with Crowdfund Capital Advisors.)
Click here to view the source data for the charts below.
Global Map
By security type
The preponderance of platforms are equity-based.
By Country
I love node charts 🙂
U.S. Crowdinvesting Industry
Let’s zoom in on the U.S. to take a closer look at . To be sure, this data is a more nuanced as only a small subset of these platforms are live today. A handful working under existing security exemptions, but the majority are waiting for the implementation of either Title II or Title III to begin funding.
By state
Unsurprisingly, we see strong clusters in New York and California.
Conclusion
Let me know if you have additional entries, and I’ll update in short order. It’s not perfect, but my goal is to continue growing and improving this database, capturing the evolution of the industry along the way. An industry that redraws our private capital markets—open, transparent and indiscriminate—just as they should be 🙂
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