View Full Version : Crowdfunding Market Analysis - Growth Potential 2014 and Beyond

11-11-2013, 02:29 AM
Wanted to share this blog post and hear some feedback.
It is an analysis of the growth potential of the crowdfunding industry as
compared to the last internet consumer boom involving Groupon and LivingSocial.

These sites still far exceed Kickstarter and Indiegogo in traffic and search.

Your Thoughts?


Salvador Briggman
11-11-2013, 11:42 PM
My honest opinion:

First of all, they need to learn how to hit enter twice to space out paragraphs. Second of all, I don't really get the comparison? Groupon and Living social are companies. Crowdfunding is a method of raising funds online. If you compare a platform like Kickstarter to Groupon or Living social, it still makes me scratch my head. They are in completely different industries with different buying patters and different sets of customers.

Other than that, they are exactly alike (insert sarcasm).

"I liken the research we have done to the technical analysis of stocks vs the fundamental analysis of other industry watchers, each have there benefits but technical data is much easier (and cheaper) to come-by and in my experience has better predictive powers."

I am also a bit at a bias because I strongly dislike technical analysis as a longterm investing technique.

11-12-2013, 12:14 AM
I believe the comparison was not comparing the companies or the industries but rather the growth potential of crowdfunding
based on google searches, alexa ranking and revenue.
This is hard data vs. surveys or other means of gathering industry information. Similar to a stock price chart (technical analysis) vs analyst expectations (fundamental analysis).
The expectation being the increase in dollars raised by projects if (when) Kickstarter achieves the traffic of Groupon.

Maybe that clears it up.

Salvador Briggman
11-14-2013, 05:39 PM
Interesting. Personally, I don't see it as a compelling argument the writer is making, but to each his own. :)

11-15-2013, 06:39 PM
There is no doubt that the market is on a trajectory to grow at a faster pace each year for the next several years. Growth in 2014 will be higher than in 2013, and 2015 higher than 2014, etc. Just how large the market will get will be determined mainly by the various governing bodies across the globe. As long as the SEC and other similar oversight bodies do not stifle the industry by over regulating it, I think in 5-7 years "Crowdfunding" will be a common term used iin mainstream society. Banks should be the first to worry. Lending Club, the largest debt based personal funding platform is about to file for an IPO in the first half of 2014. I am simply amazed that a bank hasn't purchased them or even the 2nd largest debt based platform, Prosper.com. I sold my bank stocks this last week, as they have hit nice highs lately, and crowdfunding will eventually eat into their revenues. The market is about to take off!