$20 million and counting — Crowd fundraising by fintech startups surges in 2021

dynamicbusiness.com
4 min read
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According to the report from the equity crowdfunding platform (ECF) Equitise, startups in the fintech industry raised a record $19.5 million.
Crowdfunding for fintech startups has already hit the $20 million mark this year. According to data from the recently released "2021 crowdfunding industry report" from equity crowdfunding platform (ECF) Equitise, startups in the nascent industry raised a record $19.5 million.

The crowdfunding sector has risen by 60% in the last two years, according to the report with total funds raised increasing from $28.3 million to $46 million in 2021. The entire volume of equity crowdfunding in FY19 was $28.3 million, according to the Equitise Industry Analysis. It dipped to $20.4 million in the fiscal year 2020 before touching $46.0 million in the fiscal year 2021.

The Equitise study outlines the industries that have had the most success with equity crowdfunding, as well as what the future holds, based on emerging business models that factor in the COVID-19 epidemic.

The equity crowdfunding study also determines which industries have performed the best since the regulatory reform in 2017, with Fintech, alcohol, and food topping the list.

Jonny Wilkinson, co-founder and managing director of Equitise, says the pandemic has changed many parts of daily living, including how we buy, access food, and conduct business.

"We have highlighted the four biggest industries to watch in this space in the last few months of 2021 are direct-to-consumer and online shopping, sustainable food alternatives, telehealth and craft breweries or low to no alcohol alternatives," Mr Wilkinson said.

"E-commerce is on a growth trajectory, as the pandemic changes how we shop. D2C contributes about 10% of retail in Australia, compared to the 20-30% of the overall retail level seen overseas – set to reach $4.5T by the end of this year globally.

"Activity in this space is rapidly growing, with companies like adult acne disrupter tbh skincare currently running equity…
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