Market Size of Crowdfunding in Latin America

Part
01
of one
Part
01

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:

— Judge Business School of the University of Cambridge
Polsky Center for Entrepreneurship and Innovation of The University of Chicago
Chicago Booth of The University of Chicago Booth School of Business

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
- Brazil*
- Chile*
- Colombia*
- Costa Rica
- Cuba Dominica
- Dominican Republic
- Ecuador
- El Salvador
- Guam
- Guatemala
- Haiti
- Honduras
- Mexico*
- Nicaragua
- Panama
- Paraguay
- Peru*
- 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
The total reported market size for reward-based crowdfunding in LAC in 2013 was $4,670,000.

Chile: $74,197
Brazil: $2,485,921
Mexico: $592,417
Argentina: $1,293,116
Other countries: $224,349

[$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.

Brazil: $1,100,000
Argentina: $756
Other countries: $55,500

[$1,100,000 Brazil] + [$756 Argentina] = $1,100,756 Brazil, Argentina = 95.20% total donation-based market

[$1,100,756] / [95.20% total market] = $1,156,256 = 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
The total reported market size for reward-based crowdfunding in LAC in 2014 was $7,800,000.

Chile: $94,197
Brazil: $4,370,113
Mexico: $1,720,565
Argentina: $929,136
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
The total reported market size for donation-based crowdfunding in LAC in 2014 was $2,200,000.

Brazil: $1,990,000
Argentina: $1,138
Other countries: $208,862

[$1,990,000 Brazil] + [$1,138 Argentina] = $1,991,138 Brazil, Argentina

[$2,200,000 total market] - [$1,991,108 Brazil, Argentina] = $208,862 from other countries


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.

[$151,000 Brazil] + [$1,000 Mexico] = $152,000 total market

2015 Crowdsourcing Market Size in LAC

REWARD-BASED
The total reported market size for reward-based crowdfunding in LAC in 2015 was $12,800,000.

Chile: $1,073,399
Brazil: $5,572,360
Mexico: $3,648,426
Argentina: $854,516
Peru: $201,000
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
The total reported market size for donation-based crowdfunding in LAC in 2015 was $5,200,000.

Chile: $291
Brazil: $4,655,000
Argentina: $1,500
Other countries: $543,209

[$291 Chile] + [$4,655,000 Brazil] + [$1,500 Argentina] = $4,656,791 Chile, Brazil, Argentina

[$5,200,000 total market] - [$4,656,791 Chile, Brazil, Argentina] = $543,209 other countries


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.

[$1,700,000 Brazil] + [$350,000 Mexico] = $2,050,000 Brazil, Mexico

2016 Crowdsourcing market Size in LAC

REWARD-BASED
The total reported market size for reward-based crowdfunding in LAC in 2016 was $9,300,000.

Chile: $3,500,000
Brazil: $2,500,000
Mexico: $596,000
Argentina: $854,516
Colombia: $397,000
Peru: $73,000
Other countries: $1,379,484

[$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
The total reported market size for donation-based crowdfunding in LAC in 2016 was $9,700,000.

Brazil: $7,100,000
Mexico: $2,500,000
Columbia: $37,000
Other countries: $63,000

[$7,100,000 Brazil] + [$2,500,000 Mexico] + [$37,000 Columbia] = $9,637,000 Brazil, Mexico, Columbia

[$9,700,000 total market] - [$9,637,000 Brazil, Mexico, Columbia] = $63,000 other countries


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.

[$1,400,000 Chile] + [$3,100,000 Brazil] + [$2,900,000 Mexico] = $7,400,000 total market

Total crowdfunding Market sizes

2013: $5,826,256 total crowdfunding market

[$4,670,000 reward-based] + [$1,156256 donation-based] = $5,826,256 total crowdfunding market


2014: $10,152,000 total crowdfunding market

[$7,800,000 reward-based] + [$2,200,000 donation-based] + [$152,000 equity-based] = $10,152,000 total crowdfunding market


2015: $20,050,000 total crowdfunding market

[$12,800,000 reward-based] + [$5,200,000 donation-based] + [$2,050,000 equity-based] = $20,050,000 total crowdfunding market


2016: $26,400,000 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.
Sources
Sources