Global crowdfunding is on the increase
Last year saw significant growth in the amount of money invested
through crowd funding. A report by specialist consultancy firm massolution found that global funding grew 81% in 2012 to $2.7 billion, with over a million individual projects financed. Music and recording arts ventures accounted for 7.5% of all the money donated, a share bettered only by film and other performing arts; business and entrepreneurial projects and social causes.
Sites like Kickstarter, picked out as one of our 2011 music businesses of the year, are increasingly important tools for independents and – despite notable failures like the roll out of Bjorks ‘Biophilia’ educational app and music essay site UNCOOL – continue to do very well, with donation and reward based lending programs generating a huge $1.2 billion.
Forecasts for next year are promising too, with an expected increase in global crowdfunding volumes to $5.1 billion in 2013. The report, which covered 308 different platforms, noted an increase in all regions but the vast amount of capital (over 95%) was raised in North America and Europe.
