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U.S. Crowdfunding Market Size Estimate: $3.9 billion


The University of California, Berkeley's Fung Institute for Engineering Leadership has conservatively estimated the size of the equity and debt based crowdfunding market to be at least $3.98B. 

Professor Lee Fleming, Faculty Director of the Fung Institute, Academic Director of the Program and contributing author said, “While estimating the size of the future and currently non-existent market is a hazardous endeavor at best, we have presented a set of data, assumptions, and estimations that may prove useful. From the lenses of Angels, VCs and Small business lending we believe a market as large as $3.98B per year could rapidly evolve.”

“While Venture Capitalist Fred Wilson added credibility to the concept of crowdfund investing by predicting crowdfund investing could amount to a $300B market, we believe that the market size may be much small yet equally impactful” said Sherwood Neiss, co-founder of the Program for Innovation in Entrepreneurial and Social Finance and co-author of the size of market report. “The potential is not only measured in dollars funded but also in the numbers of business started and jobs created.”

We think the $300 billion estimate optimistic, to say the least. The $3.98 billion estimate may be closer tto the mark for 2013, but we'll stick to the $2.7 billion 2012 estimate we noted earlier.  
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