allied crowdd crowdfunding report june 2015

8/9/2019 Allied Crowdd Crowdfunding Report June 2015

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Developing WorldCrowdfundingProsperity through Crowdfunding

Monthly

Benchmarking

Report

June 2015



USD $0 - $100,000

USD $100,000 - $500,000

USD $500,000 - $1m

USD $1m - $5m

USD $5m - $50m

USD $50m +

ANALYSIS

Our definition of crowdfunding in the developing world includes only projects

that are directly located in developing countries [ex-China].

Crowdfunding in the developing world is poised for an explosive growth period

(136% yoy). While the market is still in a nascent stage, the demographics, infrastructure

investments, and favorable trends in the adoption of technology, means it is on track to

catch up quickly with the west. While some countries have readily embraced the model,

there are many which stand to benefit from facilitating crowdfunding for their economies.

Countries which are struggling to channel remittances through legal channels should

explore engaging with diaspora to support crowdfunding projects.

Crowdfunding has especially been a fantastic medium for raising funds for

emergencies. After the Nepal earthquake in April, there has been a surge in

projects and money raised for the victims.

While this space has primarily been donation and lending, we expect equity

and reward based sites to drive growth in the future.

Who are AlliedCrowds?

AlliedCrowds is an aggregator anddirectory for crowdfunding platforms

(over 100+) in the 139 countriesdefined by the World Bank as eitherlower- or middle-income. The WBestimates that crowdfunding in thedeveloping world could grow to $96billion by 2025, yet there is littleconsolidated information about thespace. Our efforts (which includeshelping and building platforms) aimto make information more accessible,and greatly increase capital flows tothe developing world.

“If we all contribute

just a nickel a year,

crowdfunding in

the developing

world would morethan double”

Lars Kroijer, CEO, AlliedCrowds

CrowdfundingAnnual Forecasts

$274.4 MANNUAL GLOBAL RUN RATE

20,859# OF LIVE PROJECTS

136%FORECASTED ANNUAL GROWTH RATE

S t a n d

a r d i z e d c r o w d f u n d i n g p e r p e r s o n

$ Aid per person

Lebanon

NicaraguaSierra Leone

Bolivia

Cambodia

Paraguay

Liberia

RwandaKenya

Ecuador

Costa Rica

Uganda Mali

Haiti

AfghanistanTanzania

Senegal

GhanaVietnam

South Africa

PeruPhilippines

MalaysiaColombia

Brazil

Nigeria

Indonesia

India

- 1

0

1

2

3

4

0 50 100 150 200

As donation based

crowdfundingcontinues to

accelerate,

countries below

the trend line need

to emulate their

peers to capitalize

on innovation in the

donation space.



Top 10 Countries

The earthquake in Nepal has demonstrated the tremendous

ability to mobilize funds through crowdfunding. The rest

of these countries have consistent and well developed

crowdfunding infrastructure relative to their peer groups.

Top Sectors

The stength in crowdfunding lies in the ability to quickly and

efficiently direct money flows. This works extremely well in

the context of disaster recovery. At the moment charitable

categories dominate the space, however, we expect this

trend to change as regulation adjusts to crowdfunding.

Top Platforms

The average founding year of sites in this universe is 2011.

Kiva, GlobalGiving, and BetterPlace were founded in

2005, 2002 and 2007 respectively. We expect to see

new players emerge as this space continutes to mature.

D

i s a s t e r R e c o v e r y

W o m e n a n d G i r l s

E d u c a t i o n

C h i l d r e n

H e a l t h

H o u s i n g

A r t s a n d C u l t u r e

A g r i c u l t u r e

S e r v i c e s

R e t a i l

Global League Tables for the month of May 2015

By type

As the space continues to evolve, expect lending and

reward to grow in more importance over the coming

year. Equity will follow suit once regulators garner a

clearer understanding of the space, and introduce

supportive legislation.

N e p a l

K e n y a

P h i l i p p i n e s

I n d i a

B r a z i l

U g a n d a

E l S a l v a d o r

S o u t h A f r i c a

C a m b o d i a

M e x i c o

2187776

4 7 41%

45%

7%7%

Donation

Reward

Equity

Lending

U S D D

o l l a r s

$6m

$2m

$1m

0

$7m

$6m

$5m

$4m

$3m

$2m

$1m

0



Visit www.alliedcrowds.com/nepal-earthquake for more information

@AlliedCrowds

/AlliedCrowds

/AlliedCrowds

[email protected]

www.alliedcrowds.com

$8,800,000AMOUNT NEEDED

2,198# OF LIVE PROJECTS

$73,459,984ANNUAL FORECAST

In the Spotlight : Nepal

FEARED DEAD: 7,500+

SOURCE: THE GUARDIAN

INJURED: 14,500+

SOURCE: BBC

AFFECTED: 8 MILLION

SOURCE: BBC

ABOUT NE PAL

There was devastation in Nepal in April, after the massive 7.9

magnitude earthquake struck the landlocked country. It placed

a severe strain on the country’s infrastructure. Internationaldevelopment organizations immediately jumped into drive relief

efforts. It was critical to mobilize funds as quickly as possible,

and this is where Crowdfunding sites really stepped up. There

was a tremendous response by the major crowdfunding sites

to raise funds for the earthquake victims, and as our analysis

shows, we forecast crowdfunding in Nepal to cross the USD 73

million mark over the next year.

HOW YOU CAN HELP THE PEOPLE OF NEPAL

We have put together a resource page where you can follow the latest

news about relief efforts. We have also aggregated the information for major

development organizations who are working in Nepal as well as a directory

of crowdfunding platforms.

Crowdfunders stepped into helpthe Earthquake victims in Nepal

3 5March April May

The relief effors of the crowdfunding community in

the aftermath of the Nepal earthquake demonstrated

crowdfunding’s distinct ability to mobilize money for a

target cause. Crowdfunding offers a fast and efficient

method for transfering aid to disaster hit regions. Many

traditional charities lack the organizational structure to

execute on such an efficient scale.

Top 5 Categories

359 2

4

8

6

Disaster Recovery

Women and Girls

Children

Health

Education

think4photop / Shutterstock.com

CONTACT U S

$6,000,000

$5,000,000

$4,000,000

$3,000,000

$2,000,000

$1,000,000

0

[email protected] @AlliedCrowds

/AlliedCrowds

/AlliedCrowds

www.alliedcrowds.com

Visit www.alliedcrowds.com/nepal-earthquake for more information

allied crowdd crowdfunding report june 2015

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