Deloitte Predicts Crowdfunding Portals Will Have Increasing Impact On Venture Capital and Other Traditional Funding Sources in 2013

Deloitte released the company’s Technology, Media and Telecommunication predictions for 2013 and one particular section on crowdfunding caught our attention. Among Deloitte’s predictions:

  •  Between 2008 and 2012, crowdfunding portals likely lent more than $1.5 billion. In 2013 these loans could exceed $1.4 billion, up more than 50 percent from 201261.
  • In aggregate, crowdfunding portals are already a multi-billion dollar industry, growing at more than 50 percent a year.
  • Traditional venture capital raises about $40 billion annually67; charitable giving was almost $300 billion in the United States alone in 201168, and the pay day loan market in the United States was worth more than $50 billion in 200869. In each category, crowdfunding is growing much faster than traditional sources of funding, but still represents less than one percent of the total.
  • In a recent survey, seed financing from VCs was down almost 50 percent year-over-year78, indicating that there may be a funding gap for crowdfunding to fill.  Crowdfunding also brings the potential for more democratic or broader access to capital for startups and innovators without personal connections to capital.

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