The Growth of Crowdfunding in Croatia

During the final day of Crowdfunding Academy 2017 we held an event for the public called ‘Crowdfunding Confidential’ in order to present the results of a first comprehensive research of crowdfunding in Croatia in the last five years. We analyzed all 535 campaigns in the given period on two of the most popular crowdfunding platforms — Indiegogo and Kickstarter. From 2011. to 2015., the number of crowdfunding campaigns had grown by more than 5000% — from 3 to 176 campaigns. Nevertheless, the succcess of these campaigns is still low at 12%, with only 62 successful campaigns.

‍The success rate of 34% on Kickstarter is significantly larger, which can be interpreted as the result of the ‘all or nothing’ model of financing which attracts crowdfunders who are taking their campaigns and preparations seriously. Simultaneously, the absence of such restrictions is what makes Indiegogo by far the most popular platform in Croatia — 500 campaigns, in comparison to 35 campaigns on Kickstarter. When it comes to backers, less than 1% of the population in Croatia has so far supported any of the crowdfunding campaigns, which points to a certain level of infamiliarity and distrust when it comes to participating in this model of alternative financing. Even though the number of crowdfunding campaigns had fallen last year when compared to 2015., the number of backers as well as the success rate is slowly growing, which points to a general positive trend of growth of the crowdfunding industry in Croatia.

The growth of Crowdfunding in Croatia from 2011. to 2016.

Our results did not discourage the new, optimistic generation of crowdfunders who got the opportunity to pitch their idea and gain the first backers for their future campaigns during the pitching session. After having listened to lectures and workshops on successful pitching, our teams got to present their story, the problems they are trying to solve and call to action. From the support for marginalized groups and persons with disabilities, funding a new radio transmitter or opening a new craft beer brewery to toys for children and a mobile farm-to-table catering business — the teams presented a creative way of resolving their communities’ problems. The award for best pitch was earned by the Radio Student team who got a free video for their crowdfunding campaign.

Choosing the Winner of the Pitching Session