Editor’s note: This post was republished with permission from the Ewing Marion Kauffman Foundation’s Policy Dialogue blog.
Barriers to entrepreneurship continue to fall, leading to a democratization of entrepreneurship. Startup success no longer requires a Silicon Valley zip code in the U.S. — or even residence in a strong, developed nation. A new report highlights global crowdfunding developments of 2015 and forecasts an increase of more than 50 percent over the next 12 months.
Developing World Crowdfunding: Prosperity through Crowdfunding estimates that crowdfunding in emerging economies raised roughly $430 million in 2015 and that the figure will hit $660 million for 2016. The three top-ranking countries for 2015 were India ($27.8M), Philippines ($26.9M) and Nepal $25.5M). Rounding out the top 10 were: Mexico, Kenya, Brazil, Colombia, Cambodia, Peru and Thailand.
“AlliedCrowds is thrilled with the progress crowdfunding is making across the developing world,” said Lars Kroijer, founder and CEO of AlliedCrowds which released the report. “The industry is showing strong growth, and 2016 promises to be another great year. When platforms in the developing world move further into debt and equity crowdfunding, the growth can be explosive. Crowdfunding has the potential to transform banks and credit institutions in the developing world.”
The report also looks at how crowdfunding fits with the UN’s recently-released Sustainable Development Goals, the global initiative to reduce poverty that goes into effect this year. The authors argue that “with an estimated $96 billion to be raised through crowdfunding in the developing world in the coming ten years, there are many opportunities for creating new business with money raised from the crowd.”
Mark Marich is the executive vice president of Global Entrepreneurship Week. Since 1998, Marich has provided communications leadership on several national initiatives and more than 100 public forums covering a wide range of policy issues, including: entrepreneurial growth and economic development, health care, renewable energy, telecommunications, regulatory reform and workforce development.
He is a regular contributor to the Ewing Marion Kauffman Foundation’s blogs, which are syndicated by Missouri Business Alert.
Find Marich on Twitter: @markmarich.