Crowdfund Capital Advisors ran a study recently which yielded some astonishing facts and figures. Consider the following …

Companies with successful crowdfunding campaigns can expect quarter-to-quarter revenue increases of 24%. This can rise to a remarkable 351% with equity campaigns.

Combine this with the fact that equity crowdfunding grew by 410% between 2012 and 2014, and you can see why crowdfunding is being regularly referred to as one of the most exciting developments for ambitious entrepreneurs in recent years.

This rise in popularity shows no signs of slowing down either. Thanks to the introduction of crowdfunding, the whole system of attracting investment has become significantly more democratic, engaging and, in many cases, profitable.

On one side of the partnership, the most astute entrepreneurs have discovered an entirely new source of funding for their business ventures. It has become easier to secure the capital required to turn their ideas into a reality and the rates they can secure are typically a lot more favourable than the ones to which they would have to agree via more traditional borrowing methods. It also brings them a lot closer to their investors, giving them an opportunity to really sell their idea and convey their passion for what they do through astute pre-launch marketing.

Crowdfunding also has numerous advantages for the investor. Individuals who are only able to invest relatively small amounts now have an opportunity to get involved. The investor also benefits from a much closer investing relationship, getting a unique insight into a product or service and, in some cases, preferential treatment or early access at launch. The market is keen to encourage these mutually beneficial relationships and thanks to the introduction of tax breaks like the Enterprise Investment and Seed Enterprise Investment schemes, investors often enjoy a higher than average return on their savings.

As this is such a win-win situation, it is perhaps not surprising that the popularity of crowdfunding has grown so dramatically, and continues to do so. The most forward-thinking people in the world of finance have recognised this as being a key trend to monitor, and a potential indicator of things to come for investments in general.