Digital financial services appeal to thousands of investors and start-ups

Image source: Block Arabia

Over the past five years, digital financial services such as crowdfunding and crowdfunding have become an attractive alternative for thousands of investors and start-ups, directly connecting borrowers to lenders through online platforms and offering different models of investment in the growth of their business. As a result, the entire industry continued to grow in 2020, despite COVID-19, and shows no signs of stopping in the years to come.

According to data collected by BlockArabia.com, the global alternative finance industry is expected to reach a transaction value of $ 8.9 billion by 2023, a 20% increase in two years.

Crowdinvesting As Largest Segment To Reach $ 7.8 Billion In Two Years

The alternative finance industry includes digital financial services for business clients. Crowdinvesting, as the most important segment of the market, mainly focuses on start-ups trading investments for shares of companies.

On the other hand, crowdfunding is the use of small amounts of capital from a large number of individuals to finance a new business.

Between 2017 and 2019, the transaction value of the global alternative finance market jumped nearly 50%, from $ 3.9 billion to $ 5.8 billion, Statista data revealed. In 2020, that figure has risen to $ 6.3 billion, despite COVID-19.

Statistics show that the unified market is expected to reach nearly $ 7.5 billion in 2021 and then grow an additional $ 1.4 billion over the next two years. By 2025, the transaction value of the global alternative finance market is expected to reach over $ 9.8 billion.

Crowdfunding, as the largest segment of the market, is expected to reach a transaction value of $ 7.8 billion by 2023, an increase of 23% in two years. By 2025, that figure is expected to reach $ 8.6 billion. Additionally, the average fundraising per campaign in the crowdfunding segment last year was around $ 103,500. This figure is expected to reach $ 112,700 in 2021, then grow to nearly $ 122,000 by 2023.

Statistics show the crowdfunding segment is expected to grow to $ 1.1 billion over the next two years, up from around $ 1 billion in 2021, with average fundraising per campaign rising from $ 5,800 to $ 6,400 over the course of the year. this period.

US will account for 20% of global transaction value, Israeli market to experience fastest growth

With a transaction value of $ 1.5 billion in 2021, 12.3% more than a year ago, the United States ranks as the largest alternative financing market in the world. Data from Statista showed that figure is expected to increase 13% to $ 1.7 billion in 2023.

As the world’s second-largest alternative finance market, China is expected to reach a transaction value of $ 1.6 billion over the next two years, up from $ 0.15 billion in 2021.

However, statistics show that Israel, as the third largest market, is expected to experience even greater growth, with deal values ​​increasing by 30% over the next two years and reaching $ 1.33 billion.

The UK and the Netherlands rank in the top five, with $ 1.1 billion and $ 0.7 billion in transaction value by 2023, respectively.

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