The world of startups has become a fundamental driving force behind global innovation and economic expansion, thanks to visionary entrepreneurs who turn their ideas into reality. In the past, startup funding primarily came from venture capitalists and angel investors, but with the rise of equity crowdfunding platforms, the landscape has evolved. Platforms such as AngelList, SeedInvest, and Fundable have made it possible for a wider range of investors to get involved in supporting early-stage startups. This change has played a crucial role in the success stories of companies like Uber, Airbnb, and Dropbox, all of which started small and received crucial funding through these platforms.
This democratization of startup funding has allowed everyday investors to get a piece of the action and potentially reap high returns on their investments. However, many have missed out on the chance to invest early in companies that have gone on to achieve massive success. Take Uber, for example, a global giant in the ride-hailing industry valued at over $50 billion, which began with seed funding from angel investors and venture capitalists, showcasing the immense potential of early-stage investments.
According to a report by Facts and Factors, the global crowdfunding market is forecasted to grow at a rate of 11.8% from 2022 to 2028. In 2021, the market was valued at USD 13.5 billion, and it is projected to surpass USD 28.2 billion by 2028. This growth underscores the increasing popularity and importance of crowdfunding as a key source of funding for startups worldwide.