Why crowdfunding matters?

Why crowdfunding matters?

Crowdsourcing and crowdfunding are very familiar concepts to Turkish people. That’s how we handled everything before the industrialization and open market economy. We called it “imece.”

However, we have been surprisingly late in institutionalizing this phenomenon like Americans do. It has relatively remained on a personal level in Turkey. As Turkish people, we are very good at utilizing friends and family as resources but very bad at utilizing the resources of strangers.

That’s why I was pleasantly surprised when the details of crowdfunding by way of giving out shares was issued at yesterdays “Resmi Gazete” and became official.

Now, the methods of how to crowdfund your genius project is established. It will surely boost the funding for startups.

Here are 2019 crowdfunding statistics for North America by Fundera.com. I will write about the status of crowdfunding in Turkey in my next article. These are for you to grasp why crowdfunding matters.

About $17.2 billion is generated yearly through crowdfunding in North America.

Funds raised through crowdfunding grew 33.7 percent last year.

There were 6,455,080 worldwide crowdfunding campaigns last year.

Successful crowdfunding campaigns have raised $28,656 on average.

The average amount raised by all crowdfunding campaigns last year was $824.

About 22.4 percent is the average success rate of crowdfunding campaigns.

Overall crowdfunding projects have an average of 47 backers.

Fully-funded crowdfunding projects have an average of 300 backers.

The average pledge for fully-funded projects is $96.

The average pledge for all crowdfunding projects is $88.

The crowdfunding market is projected to grow to $300 billion by 2030.

And there are projected to be 12,063,870 campaigns by 2023.

Crowdfunding campaigns with videos earn 105 percent more than those without videos.

Campaigns that updated followers regularly raised 126 percent more than those with no updates.

Crowdfunding campaigns that raise at least 30 percent of their goal within their first week are more likely to reach their goal.

Some 53 percent of email shares of crowdfunding campaigns convert into donations.

About 12 percent of Facebook shares convert to donations.

About 3 percent of Twitter shares convert to donations.

All-or-nothing model campaigns funded fully at twice the rate of keep-it-all campaigns.

Adding personal information to your campaign could get you 79 percent more backers.

Some 42 percent of funds are raised in the first and last three days of an average crowdfunding campaign.

The average word count for successful crowdfunding campaigns is 300 to 500 words.

Team-driven crowdfunding campaigns raise 38 percent more than solo campaigns.

Those aged 24-35 are much more likely to participate in crowdfunding campaigns.

Those over 45 are significantly less likely to back campaigns.

Successful crowdfunding campaigns take an average of 11 days to prepare.

An average crowdfunding campaign lasts nine weeks.

A successful campaign admin posts an average of four times throughout their campaign.

Crowdfunding campaign admins that shared fewer than two times have a 97 percent chance of failure.

Kickstarter has had 319,051 completed projects—the most overall for any platform.

Fundrazr projects have a 41.8 percent chance at success—the best chance of success of any platform.

Indiegogo projects have raised an average of $41,634 each—the highest average amount of any platform.