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Part
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Market Size of Crowdfunding in Latin America
Much of the publicly available data regarding the total market size for crowdfunding in Latin America as a whole, in addition to further divisions of market sizes based on donation, equity, and rewards-based crowdfunding, was conflicting. Reports from Statista either over or underestimated the total market size, and did not specify exact market sizes for each specified division of crowdsourcing. However, two industry reports are available that provide relative market sizes for Latin America and the Caribbean (LAC) in 2013, 2014, 2015, and 2016. These reports are compiled with the following organizations and schools:
For this reason, the information in the report below will be a compilation of the data provided in these reports. The total market size for each respective division of rewards-based, donation-based, and equity-based will be provided, in addition to a breakdown of major contributions from countries in Latin America. Countries that do not have specific breakdowns are not included, as their contributions were too small to report in comparison to the market as a whole. The countries that were included in these reports to determine the total market size in USD were as follows, and the countries with stars (*) by their names will have a breakdown of their specific contributions to the market size over each respective year, as available:
- Anguilla
- Belize
- Bolivia
- Chile*
- Costa Rica
- Cuba Dominica
- Dominican Republic
- Ecuador
- El Salvador
- Guam
- Guatemala
- Haiti
- Honduras
- Nicaragua
- Panama
- Paraguay
- Puerto Rico
- Uruguay
- Venezuela
- U.S. Virgin Islands
One important note is that these reports (and other sources) mentioned another form of crowdfunding (real estate crowdfunding). The information for these contributions is not included in this compilation. Below is the total market size for crowdfunding in Latin America for the years of 2013, 2014, 2015, and 2016, with the respective breakdown for reward-based, donation-based, and equity-based crowdfunding, and the respective major contributions from countries listed above.
2013 Crowdsourcing Market Size in LAC
REWARD-BASED
[$74,197 Chile] + [$2,485,921 Brazil] + [$592,417 Mexico] + [$1,293,116 Argentina] = $4,445,651 Chile, Brazil, Mexico, Argentina
[$4,670,000 total market] - [$4,445,651 Chile, Brazil, Mexico, Argentina] = $224,349 other countries
DONATION-BASED
No data was reported for total market size of donation-based crowdfunding in LAC in 2013. Based on the information from reward-based crowdfunding, other countries that do not provide large enough contributions to report make up approximately 4.8% of the market, and the reported countries make up 95.20% of the total market. If this assumption is further carried to donation-based crowdfunding, then the total market size of donation based funding in LAC in 2013 can be estimated to be $1,156,256.
[$1,100,000 Brazil] + [$756 Argentina] = $1,100,756 Brazil, Argentina = 95.20% total donation-based market
[$1,156,256 total market] - [$1,100,756 Brazil + Argentina (95.20% total market)] = $55,500 from other countries
EQUITY-BASED
Equity-based crowdfunding was not regulated in most LAC countries in 2013, and thus no data is present for this type of crowdfunding for 2013.
2014 Crowdsourcing market Size in LAC
REWARD-BASED
Other countries: $685,989
[$94,197 Chile] + [$4,370,113 Brazil] + [$1,720,565 Mexico] + [$929,136 Argentina] = $7,114,011 Chile, Brazil, Mexico, Argentina
[$7,800,000 total market] - [$7,114,011 Chile, Brazil, Mexico, Argentina] = $685,989 other countries
DONATION-BASED
Other countries: $208,862
EQUITY-BASED
The total reported market size for equity-based crowdfunding in LAC in 2014 was $152,000. Due to equity-based crowdfunding not being fully regulated in most LAC countries, this market size came strictly from Brazil with a contribution of $151,000 and Mexico with a contribution of $1,000.
2015 Crowdsourcing Market Size in LAC
REWARD-BASED
Other countries: $1,450,299
[$1,073,399 Chile] + [$5,572,360 Brazil] + [$3,648,426 Mexico] + [$854,516 Argentina] + [$201,000 Peru] = $11,349,701 Chile, Brazil, Mexico, Argentina, Peru
[$12,800,000 total market] - [$11,349,701 Chile, Brazil, Mexico, Argentina, Peru] = $1,450,299 other countries
DONATION-BASED
Other countries: $543,209
EQUITY-BASED
The total reported market size for equity-based crowdfunding in LAC in 2015 was $2,050,000. This market size was strictly comprised of Brazil with a contribution of $1,700,000 and Mexico with a contribution of $350,000.
2016 Crowdsourcing market Size in LAC
REWARD-BASED
[$3,500,000 Chile] + [$2,500,000Brazil] + [$596,000Mexico] + [$854,516 Argentina] + [$397,000 Columbia] + [$73,000 Peru] = $7,920,516 Chile, Brazil, Mexico, Argentina, Columbia, Peru
[$9,300,000 total market] - [$7,920,516 Chile, Brazil, Mexico, Argentina, Columbia, Peru] = $1,379,484 other countries
DONATION-BASED
[$7,100,000 Brazil] + [$2,500,000 Mexico] + [$37,000 Columbia] = $9,637,000 Brazil, Mexico, Columbia
EQUITY-BASED
The total reported market size for equity-based crowdfunding in LAC in 2016 was $7,400,000. This market size was strictly made up of $1,400,000 from Chile, $3,100,000 from Brazil, and $2,900,000 from Mexico.
Total crowdfunding Market sizes
[$7,800,000 reward-based] + [$2,200,000 donation-based] + [$152,000 equity-based] = $10,152,000 total crowdfunding market
[$12,800,000 reward-based] + [$5,200,000 donation-based] + [$2,050,000 equity-based] = $20,050,000 total crowdfunding market
[$9,300,000 reward-based] + [$9,700,000 donation-based] + [$7,400,000 equity-based] = $26,400,000 total crowdfunding market
Conclusion
The total reward-based crowdsourcing market size in Latin American countries grew between the years of 2013 and 2015, but then decreased in 2016 by 27%, even though more countries made larger contributions to the market. Donation-based crowdfunding has been on a rise since 2014 whenever the market became more prevalent. Between 2015 and 2016, donation-based crowdfunding increased by 87%. Equity-based crowdfunding is following on the same path, having seen a growth rate of 1258% between 2014 and 2015 as it became regulated in a greater number of Latin American countries, and a growth rate of 256% between the years of 2015 and 2016. Note that Argentina has seen a steady decrease in their reward-based crowdsourcing market size every year since 2013, aside from 2016 where the market remained relatively stable. For the most part, the market sizes and contributions of countries have increased to some extent over the past few years.