They say when ideas are backed by communities – they become revolutions!
Such is an idea of Crowdfunding – which though started gaining ground around 7 years back – but today is shaking any conventional paradigms of start up funding – and becoming one of the most powerful innovation engine globally.
Let’s briefly look at how this medium has emerged across the world, in India – and what the future holds.
- By 2016 – Crowdfunding will cross even VC Funding as the funding source for new ideas
From modest levels of USD 880 Million by 2010 – to almost becoming a USD 16 Billion industry today, crowdfunding has witnessed immense growth of more than 100% YoY – and given this trajectory, which is expected to go even stronger – crowdfunding will be pumping in USD 34 Billion by 2016 – which then exceeds the average investment size of USD 30 Billion that Venture Capitalists normally make!
Even if we look at equity crowdfunding – which has a volume of approximately USD 2.50 Billion today – assuming the similar growth trends – it will again cross average VC investment levels by year 2020.