Crowdfunding Trends 2016
- Feb 28, 2016
- 1 min read
Crowdfunding, once a niche model for those who couldn’t get traditional financing, has gone mainstream. Active global crowdfunding generated $35 billion in 2015 and is expected to more than double in 2016, according to research firm Massolution.
These trends will dictate the growth of Crowdfunding in 2016. Whether novice or veteran investor, don’t risk missing them.
Continue Massive Growth - As exposure and education increases so will the size of the market. It’s inevitable.
Consolidation - Crowdfunding will mature in 2016. Dominant players will absorb smaller rivals. Better and expanded services will result. That’s good news for investors. 2016 is the year to up your game or jump in for the first time.
Peer-to-peer lending - The peer-to-peer lending market is looking for another massive growth in 2016, as people and fund managers seek higher yields when rates on money markets continue to be at historic lows.
Equity Crowdfunding - Legislation will soon open up equity crowdfunding for everyone and will completely transform fund raising for startups and small businesses.
New industries will join - Industries (Sports, Energy, Transportation, Biotech) that have historically experienced difficulty or had access to fewer options when it comes to raising capital will find that equity crowdfunding is a viable fundraising method.
Crowdfunding Before VC - Many startups will try out crowdfunding before seeking venture capital. This will prove that they have a viable product or service.
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