Research firm Massolution released last Monday a crowdfunding industry report based on its research into 582 firms. 2013CF The Crowdfunding Industry Report estimates that crowdfunding sites globally will reach close to $5.1 billion in transactions for 2013, twice the $2.7 billion total for 2012. That data extrapolates to an 81% growth in 2013-12 versus a 64% growth in 2012-11.
Right now the spotlight is on LendingClub that offers peer-to-peer loans of up to $33,000. Last month they transacted $125 million with projections to lend up to $1.5 billion by year end. They stand to double in size from 2012 and are considered the behemoth as they are triple the size of the US second runner up Prosper; which has lent $400+ million cummulatively over the last few years.
“While the growth in 2012 funding volumes was primarily driven by both lending-based and donation-based crowdfunding, lending grew a compelling 111% to a total volume of $1.2 billion, and is expected to exceed $2 billion this year,” said Carl Esposti, CEO of Massolution. He adds: “The growth in lending volumes mainly stems from crowdfunded micro-loans and from local SME loans.”
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