The use of alternative financing methods has grown during the pandemic and will continue to do so through at least 2023, data from BlockArabia.com suggests.
Globally, alternative financing is expected to grow by 20 per cent to hit $8.9 billion in 2023. The bulk of that is from crowdinvesting, which is usually directed to startups where investment is traded for shares. Crowdinvesting which will represent $7.8 billion in 2023 and north of $9.8 billion in 2025.
Between 2017 and 2019 global alternative financing rose from $3.9 billion to $5.8 billion, a gain of almost 50 per cent. It inched up to $6.3 billion last year.
In 2020 the average crowdinvesting raise was $103,500. It is set to grow to $112,700 this year and $122,000 in 2023.
The United States is the largest single market, with its estimated take of $1.7 billion accounting for just under 20 per cent in 2023. China is close behind at $1.6 billion. Watch out for Israel, which could see 30 per cent growth by 2023 to sit in third with $1.33 billion. The United Kingdom ($1.1 billion) and Netherlands ($700 million) will round out 2023’s top five.
