A Roundup of Common Crowdfunding Predictions for 2015 from Industry Professionals
By December of each year, experts, writers and statisticians begin to muse on the state of things. This speaks true for all industries—crowdfunding included. It seems this year, however, the future has garnered immense interest as an unusual number of CEOs, think-tankers and analysts have made crowdfunding predictions for 2015. Undoubtedly, this is due to big developments in the last few quarters and the promise of what lies ahead.
CEOWorld forecasts $20 billion in crowdfunding capital next year, which continues the 100% year-over-year trend initiated in 2012. The company also reports that the industry could reach $300 billion by 2025. But what factors contribute to this growth? The consensus seems to be that greater interest from personal investors, brokers, corporations, foundations and household brands will propel the industry to such heights.
Further Expansion into Niche Markets
Most experts agree that crowdfunding will influence more niche markets in 2015. Luke Lang, CMO of CrowdCube, and Scott Picken, CEO of Wealth Migrate, both mention this in interviews with CrowdfundBeat, identifying sectors such as biotech, medical and real estate as markets to watch. Similarly, Dr. Richard Stewart predicts that the popularity of rewards crowdfunding will consequently increase the costs and resources involved in campaigns.
Despite more attention on rewards crowdfunding—especially in countries outside of the US, as major North American portals seek international opportunities—Peter Crosby, CMO of DreamFund, believes there will be fewer all-or-nothing campaigns in the New Year and that portals will encourage projects to adopt other hybrid models.
Large-Scale Failures and Shutdowns
Interestingly, Dr. Richard Stewart and Luke Lang both expect many platforms to close in 2015. Lang calls this “crowdfunding roadkill,” attributing great losses to the demand for advanced technologies and new regulations. Many analysts support this statement, claiming the number of portals today is simply unsustainable. Steven Cinelli of Primarq estimates nearly half of platforms from 2014 will cease operations in the next 12 months.
The Future of the JOBS Act
Crowdfunding predictions for 2015 regarding the JOBS Act are not unanimous: whether or not the Act will move forward or remain deadlocked is debateable. Considering predictions last year optimistically called for amendments to the Act, many believe it’s unlikely that 2015 will bring a solution. With that said, even if things progress, portals could only open late in the year since registration takes time. Nevertheless, changes in congress could push things along.
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