The new year is just around the corner, and crowdfunding investments are only expected to explode. One study showed that between 2014 and 2015, investments through crowdfunding platforms were expected to increase 112%, to $34.4 billion. As the industry continues to grow, trends are adapting and changing. Here’s a look at some trends to expect in 2020, that could impact the next few years to come.
Crowdfunding for health
Healthcare can be debilitatingly costly, and at times, it can mean the difference between life and death, even for those with insurance. That’s why a massive portion of crowdfunding campaigns have to do with medical expenses. The CEO of GoFundMe says that one-third of the sites donations help people with medical care. Researchers recently noted that more than one quarter of campaigns were to raise money for underinsured patients. The trend of people using crowdfunding to pay for medical care shows no signs of slowing down.
Big results for non-profits
2020 could be a promising year for non-profit organizations which turn to fundraising. As donations turn increasingly digital, non-profits are able to tap into a wide range of crowdfunding resources. Organizations and charities can raise money for specific projects or causes. There are plenty of crowdfunding websites and resources specifically designed for non-profit organizations. Non-profits will likely find that utilizing crowdfunding can be quick, easy, and affordable.
Equity crowdfunding
This is a popular system of crowdfunding in which investors get equity in the business, and it can yield big results. One entrepreneur recently shared how they raised $1 million in 30 days through equity crowdfunding. There are certain platforms designed specifically for equity crowdfunding. This trend could be the key to success for new companies looking to raise significant capital.
A new life for blockchain
You may be familiar with blockchain technology from the world of cryptocurrencies, where it’s used for decentralization and deregulation of the currencies. But it appears blockchain could be a big trend in 2020. Stanford recently published a study titled “Blockchain for Social Impact: Moving Beyond the Hype.” Researchers said that blockchain was added layers of transparency for aid initiatives, and that “blockchain has the power to transform charitable giving.”
Transforming real estate investments
Crowdfunding campaigns are transforming the model for real estate investment. Real estate crowdfunding has been a booming trend for several years. It’s an attractive option for investors, who may have less capital to invest in the first place, but still want to jump into the world of real estate investment. There are many platforms for investors to choose from, like Fundrise, which allows investments as low as $500.
Looking ahead
It’s clear that the landscape of crowdfunding has transformed greatly over the past several years, and it will continue to shift and grow. In 2018, the global crowdfunding market was valued at $10.2 billion, and there are predictions it will grow to $28.8 billion by 2025.
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