Market Insights Financial Capital Raising Digital Capital Raising

Reward-Based Crowdfunding - Israel

Israel

The total transaction value in the Reward-Based Crowdfunding market in Israel is forecasted to reach €3.36m by 2024.
When comparing globally, it is evident that the United States leads with a transaction value of €431m in 2024.
Israel's tech-savvy start-up culture drives a surge in Crowdfunding platforms, revolutionizing capital raising in the nation's dynamic market.

Key regions: Germany, Brazil, Australia, Israel, United States

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Analyst Opinion

The Crowdfunding market in Israel has been experiencing significant growth in recent years, driven by customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in Israel have played a crucial role in the development of the Crowdfunding market.

Israeli consumers have shown a strong interest in supporting innovative projects and startups, particularly in the technology sector. This has created a demand for crowdfunding platforms that allow individuals to invest in these projects and become part of their success. Additionally, Israeli consumers value transparency and social impact, which has led to the emergence of crowdfunding platforms that focus on social and environmental causes.

Trends in the market have also contributed to the growth of crowdfunding in Israel. The rise of social media and online communities has made it easier for entrepreneurs to reach potential investors and raise funds for their projects. Crowdfunding platforms have capitalized on this trend by providing a convenient and accessible way for entrepreneurs to showcase their ideas and attract investors.

Furthermore, the success stories of Israeli startups that have raised significant funds through crowdfunding have inspired others to explore this financing option. Local special circumstances have further fueled the growth of the Crowdfunding market in Israel. The country has a vibrant startup ecosystem and is known for its technological innovation.

However, traditional funding sources such as banks and venture capitalists have been hesitant to invest in early-stage startups, leading entrepreneurs to seek alternative financing options. Crowdfunding has emerged as a viable solution, allowing startups to raise funds directly from the public and bypass the traditional funding channels. Underlying macroeconomic factors have also played a role in the development of the Crowdfunding market in Israel.

The country has a strong economy and a high level of disposable income, which has created a pool of potential investors willing to support innovative projects. Additionally, the Israeli government has recognized the potential of crowdfunding as a driver of economic growth and has introduced regulations to support the industry. These regulations have provided a framework for crowdfunding platforms to operate and have increased investor confidence in the market.

In conclusion, the Crowdfunding market in Israel has experienced significant growth due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Israeli consumers' interest in supporting innovative projects, the rise of social media, and the country's vibrant startup ecosystem have all contributed to the growth of crowdfunding. Additionally, the strong economy and supportive government regulations have created a favorable environment for the development of the market.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.