Developing World CrowdfundingProsperity through Crowdfunding

Monthly Benchmarking Report

June 2015

USD $0 - $100,000

USD $100,000 - $500,000

USD $500,000 - $1m

USD $1m - $5m

USD $5m - $50m

USD $50m +

ANALYSIS

Our definition of crowdfunding in the developing world includes only projects that are directly located in developing countries [ex-China].

Crowdfunding in the developing world is poised for an explosive growth period (136% yoy). While the market is still in a nascent stage, the demographics, infrastructure investments, and favorable trends in the adoption of technology, means it is on track to catch up quickly with the west. While some countries have readily embraced the model, there are many which stand to benefit from facilitating crowdfunding for their economies. Countries which are struggling to channel remittances through legal channels should explore engaging with diaspora to support crowdfunding projects.

Crowdfunding has especially been a fantastic medium for raising funds for emergencies. After the Nepal earthquake in April, there has been a surge in projects and money raised for the victims.

While this space has primarily been donation and lending, we expect equity and reward based sites to drive growth in the future.

Who are AlliedCrowds?

AlliedCrowds is an aggregator and directory for crowdfunding platforms (over 100+) in the 139 countries defined by the World Bank as either lower- or middle-income. The WB estimates that crowdfunding in the developing world could grow to $96 billion by 2025, yet there is little consolidated information about the space. Our efforts (which includes helping and building platforms) aim to make information more accessible, and greatly increase capital flows to the developing world.

“If we all contribute just a nickel a year, crowdfunding in the developing world would more than double”Lars Kroijer, CEO, AlliedCrowds

Crowdfunding Annual Forecasts

$274.4 MANNUAL GLOBAL RUN RATE

20,859# OF LIVE PROJECTS

136%FORECASTED ANNUAL GROWTH RATE

Sta

ndar

dize

d cr

owdf

undi

ng p

er p

erso

n

$ Aid per person

Lebanon

Nicaragua

Sierra Leone

Bolivia

Cambodia

Paraguay

LiberiaRwanda

Kenya

Ecuador

Costa Rica

Uganda Mali

Haiti

AfghanistanTanzania

Senegal

GhanaVietnam

South Africa

PeruPhilippines

MalaysiaColombia

Brazil

NigeriaIndonesia

India

-10

12

34

0 50 100 150 200

As donation based crowdfunding continues to accelerate, countries below the trend line need to emulate their peers to capitalize on innovation in the donation space.

Top 10 Countries

The earthquake in Nepal has demonstrated the tremendous ability to mobilize funds through crowdfunding. The rest of these countries have consistent and well developed crowdfunding infrastructure relative to their peer groups.

Top Sectors

The stength in crowdfunding lies in the ability to quickly and efficiently direct money flows. This works extremely well in the context of disaster recovery. At the moment charitable categories dominate the space, however, we expect this trend to change as regulation adjusts to crowdfunding.

Top Platforms

The average founding year of sites in this universe is 2011. Kiva, GlobalGiving, and BetterPlace were founded in 2005, 2002 and 2007 respectively. We expect to see new players emerge as this space continutes to mature.

Dis

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Wom

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Edu

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Chi

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Hea

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Hou

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Art

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Agr

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Ser

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Global League Tables for the month of May 2015

By type

As the space continues to evolve, expect lending and reward to grow in more importance over the coming year. Equity will follow suit once regulators garner a clearer understanding of the space, and introduce supportive legislation.

Nep

al

Ken

ya

Phi

lippi

nes

Indi

a

Bra

zil

Uga

nda

El S

alva

dor

Sou

th A

fric

a

Cam

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Mex

ico

20+19+14+11+8+7+7+7+6

41+7+7+4541%45%

7%7%

Donation

Reward

Equity

Lending

USD

Dol

lars

$6m

$2m

$1m

0

$7m

$6m

$5m

$4m

$3m

$2m

$1m

0

Visit www.alliedcrowds.com/nepal-earthquake for more information

@AlliedCrowds

/AlliedCrowds

/AlliedCrowds

info@alliedcrowds.com

www.alliedcrowds.com

$8,800,000AMOUNT NEEDED

2,198# OF LIVE PROJECTS

$73,459,984ANNUAL FORECAST

In the Spotlight : NepalFEARED DEAD: 7,500+

SOURCE: THE GUARDIAN

INJURED: 14,500+

SOURCE: BBC

AFFECTED: 8 MILLION

SOURCE: BBC

ABOUT NEPAL

There was devastation in Nepal in April, after the massive 7.9 magnitude earthquake struck the landlocked country. It placed a severe strain on the country’s infrastructure. International development organizations immediately jumped into drive relief efforts. It was critical to mobilize funds as quickly as possible, and this is where Crowdfunding sites really stepped up. There was a tremendous response by the major crowdfunding sites to raise funds for the earthquake victims, and as our analysis shows, we forecast crowdfunding in Nepal to cross the USD 73 million mark over the next year.

HOW YOU CAN HELP THE PEOPLE OF NEPAL

We have put together a resource page where you can follow the latest news about relief efforts. We have also aggregated the information for major development organizations who are working in Nepal as well as a directory of crowdfunding platforms.

Crowdfunders stepped into help the Earthquake victims in Nepal15+30+55

March April May

The relief effors of the crowdfunding community in the aftermath of the Nepal earthquake demonstrated crowdfunding’s distinct ability to mobilize money for a target cause. Crowdfunding offers a fast and efficient method for transfering aid to disaster hit regions. Many traditional charities lack the organizational structure to execute on such an efficient scale.

Top 5 Categories

3455359591217 273435 268088 246068

Disaster Recovery

Women and Girls

Children

Health

Education

think4photop / Shutterstock.com

CONTACT US

$6,000,000

$5,000,000

$4,000,000

$3,000,000

$2,000,000

$1,000,000

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