Latin America Crowdfunding Market

Latin America Crowdfunding Market Overview:

The Latin America crowdfunding market size reached USD 1.2 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 3.4 Billion by 2033, exhibiting a growth rate (CAGR) of 11.12% during 2025-2033. The market is experiencing significant growth, driven by increased internet and smartphone access, a vibrant startup culture, and supportive regulations. Fintech innovations and growing entrepreneurial activity enhance accessibility and trust, positioning crowdfunding as a vital alternative financing method and fostering economic and social development across the region.

Latin America Crowdfunding Market Trends:

Expanding User Base

The expanding user base in Latin America crowdfunding market outlook is significantly driven by increased internet penetration and widespread smartphone usage. As internet access becomes more ubiquitous, particularly in urban and even some rural areas, more individuals and businesses gain the ability to connect with crowdfunding platforms. According to industry reports, in 2023, mobile technologies contributed 8% of GDP in Latin America, totaling USD 520 Billion. Mobile internet users reached 418 million (65% of the population), up by 75 million. By April, 29 operators launched 5G in 10 countries, expected to rise from 5% to 55% of connections by 2030. In line with this, smartphones play a crucial role by enabling on-the-go access, making it easier for users to create, manage, and support campaigns anytime, anywhere. This digital accessibility lowers barriers to entry, allowing a diverse range of participants, including young entrepreneurs and small businesses, to engage in fundraising. Additionally, improved connectivity fosters greater awareness and trust in crowdfunding as a reliable financing alternative, encouraging more widespread adoption and participation across the region. Therefore, this is further positively influencing Latin America crowdfunding market share.

Rapid Growth in Startup Culture

The growing startup culture in Latin America is characterized by a significant increase in entrepreneurial activity, with more individuals launching innovative startups and diverse projects across various sectors. According to industry reports, Latin America became an emerging startup ecosystem, with over 9,000 funded startups raising USD 3.9 Billion in VC investment in 2023. The region has seen rapid digital adoption in fintech and e-commerce. This growth has led to over 60 unicorns being established in the past decade. This vibrant ecosystem is driven by a combination of youthful talent, access to technology, and supportive educational initiatives. Crowdfunding has become a pivotal tool for these entrepreneurs, enabling them to secure essential initial funding without relying solely on traditional financial institutions. Additionally, crowdfunding platforms provide a means to validate business ideas by gauging public interest and receiving valuable feedback from early supporters. This validation process helps startups refine their concepts and build a loyal customer base even before their official launch. Consequently, crowdfunding facilitates financial backing and fosters community engagement and market readiness, essential for the success and sustainability of new ventures in the region. Thus, this is also significantly supporting the Latin America crowdfunding market growth.

Latin America Crowdfunding Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the regional level for 2025-2033. Our report has categorized the market based on type and end use.

Type Insights:

• P2P Lending
• Equity Investment
• Hybrid
• Reward-based
• Others

The report has provided a detailed breakup and analysis of the market based on the type. This includes P2P lending, equity investment, hybrid, reward-based, and others.

End Use Insights:

• Entrepreneurship
• Social Cause
• Movies and Theater
• Real Estate
• Music
• Technology
• Publishing
• Others

A detailed breakup and analysis of the market based on the end use have also been provided in the report. This includes entrepreneurship, social cause, movies and theater, real estate, music, technology, publishing, and others.

Country Insights:

• Brazil
• Mexico
• Argentina
• Colombia
• Chile
• Peru
• Others

The report has also provided a comprehensive analysis of all the major regional markets, which include Brazil, Mexico, Argentina, Colombia, Chile, Peru, and others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Latin America Crowdfunding Market News:

• In April 2024, GoFundMe expanded its crowdfunding services to Mexico, allowing local fundraisers to solicit donations. This growth marks the platform's entry into its 20th country, targeting untapped Latin American markets. The expansion aims to enhance financial support and philanthropy in Mexico, leveraging established ties with U.S. users.
• In September 2023, Infocheck, a Chilean fintech startup, raised USD 350,000 through crowdfunding on the Broota platform. The company streamlines risk assessment for B2C and B2B clients, providing real-time market reports. This funding supports product development and enhances their sales team.

Latin America Crowdfunding Market Report Coverage:

Key Questions Answered in This Report:

• How has the Latin America crowdfunding market performed so far and how will it perform in the coming years?
• What is the breakup of the Latin America crowdfunding market on the basis of type?
• What is the breakup of the Latin America crowdfunding market on the basis of end use?
• What is the breakup of the Latin America crowdfunding market on the basis of country?
• What are the various stages in the value chain of the Latin America crowdfunding market? 
• What are the key driving factors and challenges in the Latin America crowdfunding market?
• What is the structure of the Latin America crowdfunding market and who are the key players?
• What is the degree of competition in the Latin America crowdfunding market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Latin America crowdfunding market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Latin America crowdfunding market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Latin America crowdfunding industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.