Crowdfunding in United States Trends and Forecast
The future of the crowdfunding market in United States looks promising with opportunities in the food and beverage, technology, media and entertainment, real estate, and healthcare markets. The crowdfunding market is expected to grow with a CAGR of 14.7% from 2025 to 2031. The crowdfunding market in United States is also forecasted to witness strong growth over the forecast period. The major drivers for this market are the emergence of crowdfunding platforms and more accessible avenues for entrepreneurs, artists, and creatives to secure funding for their projects.
• Lucintel forecasts that, within the type category, debt-based crowdfunding is expected to witness the highest growth over the forecast period due to the growing demand for debt-based crowdfunding by startup companies to raise funds quickly, compared to traditional banks.
• Within the application category, real estate will remain the largest segment due to the growing popularity of real estate investment trusts.
Emerging Trends in the Crowdfunding Market in United States
The crowdfunding market in the United States is rapidly changing due to technological advancements, changes in investor behavior, and an evolving regulatory landscape. The market has become accessible to small businesses, startups, and individuals who seek alternative funding sources. Crowdfunding is no longer limited to business ventures; it is used for social causes, real estate investments, and even political campaigns. Below are the emerging trends that are shaping the crowdfunding market in the United States.
• Equity Crowdfunding Growth: Equity crowdfunding has become a major success in the United States, giving ordinary investors the opportunity to buy shares in early-stage companies. This trend democratizes access to startup investments by providing small investors the chance to gain returns from high-growth ventures. The JOBS Act facilitates this shift, and more platforms have emerged as an alternative to traditional venture capital for entrepreneurs. Growth in this space empowers startups with access to broader funding sources while allowing investors to diversify their portfolios.
• Increase in Social and Impact Investing: Crowdfunding platforms in the United States are increasingly being used to fund social impact initiatives, including environmental, educational, and social justice projects. Investors are becoming more conscious of the environmental and societal impact of their investments, which is reshaping the crowdfunding landscape. Platforms that aim to address social and environmental causes are attracting both individual and institutional investors into impact investing, accelerating its growth. This is leading to a shift toward funding that is more responsible and sustainable.
• Blockchain and Cryptocurrency Integration: Blockchain technology and cryptocurrencies are revolutionizing crowdfunding in the United States. Blockchain offers more transparency, security, and efficiency, reducing risks associated with traditional crowdfunding models. Cryptocurrencies provide an alternative investment mechanism, allowing investors from other countries to participate with relatively fewer barriers. This integration will continue to simplify transactions and ensure a higher level of trust in the system. The use of these technologies will continue to expand, further bolstering the crowdfunding market’s credibility and scalability.
• Crowdfunding for Real Estate Investment: Crowdfunding in the United States is gaining momentum as it allows individuals to invest in real estate projects without requiring large sums of capital. Crowdfunding platforms enable small investors to pool resources to develop residential, commercial, or mixed-use property developments. More people are getting the opportunity to invest in the lucrative field of real estate. This also provides alternative funding sources for developers, thus widening the entire ecosystem of real estate investment.
• Regulatory Changes and Investor Protection: The regulatory framework in the United States, especially through the Securities and Exchange Commission and the JOBS Act, is changing to provide greater investor protection in the crowdfunding market. These regulations aim to reduce fraud, provide transparency, and ensure that investors are well-informed. As the crowdfunding market expands, the need for stronger regulation grows to maintain trust and security. Such developments are building a more sustainable and secure crowdfunding ecosystem.
Equity crowdfunding, social and impact investing, the integration of blockchain and cryptocurrency, crowdfunding in real estate, and regulatory changes are shifting the United States crowdfunding market onto a new path. These changes are not only broadening crowdfunding but also making it more accessible, more transparent, and more secure as it attracts an increasingly diverse portfolio of investors and entrepreneurs.
Recent Developments in the Crowdfunding Market in United States
The crowdfunding market in the United States is experiencing a period of rapid change, with new developments shaping its growth. These developments are influenced by technological innovations, evolving investor expectations, and updated regulations. The following key developments are impacting the crowdfunding landscape in the US.
• Expansion of Crowdfunding Platforms: A variety of new crowdfunding platforms have emerged in the United States, catering to specific industries such as real estate, technology, and social causes. These platforms provide entrepreneurs with more targeted options for raising funds. By serving niche markets and offering specialized services, these platforms are helping to diversify the crowdfunding ecosystem. This expansion is also increasing competition among platforms, which could lead to more user-friendly and innovative solutions for both investors and project creators.
• Increased Focus on Regulation and Transparency: As the crowdfunding market grows, there has been an increased focus on regulation, especially for equity crowdfunding. The SEC has introduced more stringent rules to protect investors and ensure transparency in campaigns. These regulatory developments are essential for preventing fraud and ensuring that crowdfunding platforms operate with integrity. The increased focus on transparency is helping to build trust in the crowdfunding system, attracting more investors to participate in this growing market.
• Crowdfunding for Political Campaigns: Political crowdfunding has become a significant development in the United States, with more candidates using platforms to raise money for their campaigns. This shift has been facilitated by changes in laws surrounding political fundraising, allowing individuals to donate small amounts directly to campaigns. Political crowdfunding allows candidates to engage with a wider base of supporters, democratizing political funding and potentially reshaping election strategies in the future.
• Mainstream Adoption of Crowdfunding by Large Corporations: Many large corporations in the United States are now utilizing crowdfunding platforms for product launches, marketing campaigns, and even employee benefits. This trend has helped crowdfunding move beyond startups, demonstrating its potential as a mainstream business tool. By leveraging crowdfunding, large companies can test market demand, gather customer feedback, and engage with their audience more effectively. This shift is further legitimizing crowdfunding as a viable business strategy.
• Crowdfunding for Healthcare and Medical Expenses: Crowdfunding for healthcare and medical expenses has seen substantial growth in the United States. Many individuals are turning to crowdfunding platforms to cover medical costs not covered by insurance. This trend highlights the increasing role of crowdfunding in personal finance and healthcare, offering individuals a way to raise funds for unforeseen medical expenses. The growth of medical crowdfunding is reshaping the healthcare financing landscape and offering an alternative to traditional methods of funding medical costs.
These developments, including the expansion of platforms, increased focus on regulation, political crowdfunding, mainstream adoption by corporations, and healthcare funding, are driving change in the crowdfunding market. These shifts are reshaping the ways individuals and organizations approach funding, creating new opportunities and challenges in the process.
Strategic Growth Opportunities for Crowdfunding Market in United States
The crowdfunding market in the United States presents significant growth opportunities across various applications, driven by both investor demand and technological innovations. Below are five key growth opportunities within the US crowdfunding ecosystem.
• Crowdfunding for Green and Sustainable Projects: Environmental sustainability is a key growth opportunity in the US crowdfunding market. Many investors are increasingly interested in supporting projects focused on clean energy, sustainable agriculture, and eco-friendly products. Crowdfunding platforms that facilitate investment in green and sustainable initiatives are tapping into a growing market of socially conscious investors who are looking to make a positive impact with their financial support.
• Real Estate Crowdfunding Expansion: Real estate crowdfunding continues to be a high-growth area in the United States. With property prices rising and investors looking for diversification, real estate crowdfunding allows individuals to pool resources and invest in real estate without the need for large capital. This growth opportunity is making real estate more accessible to a broader range of investors and providing developers with alternative financing options.
• Crowdfunding for Minority-Owned Businesses: There is increasing interest in supporting minority-owned businesses through crowdfunding in the United States. Platforms focused on diverse entrepreneurs are attracting investors who want to promote inclusivity and social justice. Crowdfunding offers an alternative to traditional venture capital for minority entrepreneurs, enabling them to access capital that may otherwise be difficult to obtain. This trend is helping to diversify the entrepreneurial landscape and create more equitable opportunities for business owners.
• Crowdfunding for Education and Skills Development: Education-related crowdfunding is gaining traction, with individuals and organizations using platforms to raise money for scholarships, educational resources, and skills development programs. This growth opportunity is empowering students, educators, and educational institutions to obtain funding for specialized programs or initiatives that benefit the broader community. This trend reflects the growing recognition of education as a key investment in the future.
• Crowdfunding for Health and Wellness Ventures: Health and wellness crowdfunding has seen substantial growth, driven by the increasing demand for personalized healthcare, fitness products, and wellness services. Entrepreneurs are using crowdfunding to bring innovative health products, services, and technologies to market. This growth opportunity is benefiting from the rising consumer interest in health and wellness, providing a platform for creators to access funding for their projects.
The crowdfunding market in the United States offers significant growth opportunities, particularly in areas like sustainable projects, real estate, minority-owned businesses, education, and health and wellness. These opportunities reflect changing consumer interests, technological advances, and societal trends, driving the evolution of crowdfunding in the country.
Crowdfunding Market in United States Driver and Challenges
The crowdfunding market in the United States is influenced by various technological, economic, and regulatory factors that both drive growth and present challenges. These drivers and challenges are critical in shaping the future of the market.
The factors responsible for driving the crowdfunding market in United States include:
• Technological Advancements: Technological innovations, including blockchain, mobile platforms, and AI-driven analytics, are driving the crowdfunding market. These technologies improve transaction efficiency, reduce costs, and ensure greater transparency, enhancing trust in crowdfunding platforms. Technology also allows for better targeting of investors, streamlining the process for both fundraisers and contributors.
• Increase in Entrepreneurial Activity: The United States has seen a rise in the number of entrepreneurs seeking alternative funding sources, particularly as traditional financing options become more competitive. Crowdfunding is viewed as a valuable tool for securing capital, as it enables entrepreneurs to bypass traditional financing routes like venture capital or loans.
• Investor Demand for Diversification: Investors in the United States are increasingly looking for alternative investment opportunities outside of the traditional stock market. Crowdfunding allows investors to diversify their portfolios, offering access to early-stage companies, real estate, and social impact projects. This diversification is a key driver of the market’s growth.
• Government Regulation and Support: Regulatory frameworks such as the JOBS Act have facilitated the growth of crowdfunding in the United States by allowing for more accessible investment options. These regulations create a safer and more transparent environment for investors, fostering confidence in the crowdfunding ecosystem.
• Socially-Conscious Investing: Socially responsible investing is a growing driver of crowdfunding in the United States. Investors are more inclined to support projects that align with their values, especially those focused on environmental sustainability, social justice, and community development. Crowdfunding platforms that cater to these interests are seeing an increase in demand.
Challenges in the crowdfunding market in United States are:
• Fraud and Misuse of Funds: Despite regulations, the crowdfunding market still faces challenges related to fraud and the misuse of funds. This can undermine investor confidence and slow the growth of crowdfunding. Ensuring proper vetting and transparent operations on platforms is necessary to reduce these risks.
• Market Saturation and Competition: As crowdfunding continues to grow, the number of platforms and campaigns has become increasingly saturated. This makes it more difficult for individual campaigns to stand out, especially in highly competitive sectors. The challenge for platforms is to offer differentiated services to maintain a competitive edge.
• Legal and Regulatory Complexity: The regulatory environment for crowdfunding is evolving, and this can create uncertainty for platforms, investors, and entrepreneurs. The changing rules and requirements can create legal hurdles, especially for smaller platforms that may not have the resources to navigate complex regulations.
The drivers of technological advancement, entrepreneurial growth, investor demand, government regulation, and socially conscious investing are helping to propel the crowdfunding market in the United States. However, challenges related to fraud, market saturation, and legal complexities must be addressed to ensure sustainable growth and maintain investor confidence in the market.
List of Crowdfunding Market in United States Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies, crowdfunding companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the crowdfunding companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5
• Company 6
• Company 7
• Company 8
• Company 9
• Company 10
Crowdfunding Market in United States by Segment
The study includes a forecast for the crowdfunding market in United States by type, investment size, and application.
Crowdfunding Market in United States by Type [Analysis by Value from 2019 to 2031]:
• Reward-based Crowdfunding
• Equity-based Crowdfunding
• Debt-based Crowdfunding
• Donation-based Crowdfunding
• Others
Crowdfunding Market in United States by Investment Size [Analysis by Value from 2019 to 2031]:
• Small and Medium Investment
• Large Investment
Crowdfunding Market in United States by Application [Analysis by Value from 2019 to 2031]:
• Food and Beverage
• Technology
• Media and Entertainment
• Real Estate
• Healthcare
• Others
Features of the Crowdfunding Market in United States
Market Size Estimates: Crowdfunding in United States market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Crowdfunding in United States market size by types, investment sizes, and applications in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different types, investment sizes, and applications for the crowdfunding in United States.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the crowdfunding in United States.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What are the major drivers influencing the growth of the crowdfunding market in United States?
Answer: The major drivers for this market are the emergence of crowdfunding platforms and more accessible avenues for entrepreneurs, artists, and creatives to secure funding for their projects.
Q2. What are the major segments for crowdfunding market in United States?
Answer: The future of the crowdfunding market in United States looks promising with opportunities in the food and beverage, technology, media and entertainment, real estate, and healthcare markets.
Q3. Which crowdfunding market segment in United States will be the largest in future?
Answer: Lucintel forecasts that debt-based crowdfunding is expected to witness the highest growth over the forecast period due to the growing demand for debt-based crowdfunding by startup companies to raise funds quickly as compared to traditional banks.
Q4. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 10 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the crowdfunding market in United States by type (reward-based crowdfunding, equity-based crowdfunding, debt-based crowdfunding, donation-based crowdfunding, and others), investment size (small and medium investment and large investment), and application (food and beverage, technology, media and entertainment, real estate, healthcare, and others)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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