# Alternative finance market in robust health, despite CAMFI indicating slight downturn
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2017-08-29
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: Global Crowdfunding and Marketplace Finance Industry Shows
Meta Description: Despite a slight downturn in July, the global crowdfunding and marketplace finance industry shows signs of long-term growth. Learn more about the
URL: https://financedigest.com/alternative-finance-market-in-robust-health-despite-camfi-indicating-slight-downturnhtml

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**_Crowdfunding and marketplace finance industry entering slight summer downturn, despite showing signs of long term growth_**

![Emily Mackay, CEO TAB](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/fd290817-4-300x300-1736843565749-compressed.jpg)

Emily Mackay, CEO TAB

The world’s first global [Crowdfunding](https://www.financedigest.com/effective-crowdfunding-campaigns-strategies-for-startup-success.html) and Marketplace Finance Index (CAMFI) shows that the industry exhibited a slight downturn in July, dropping from 94.11 in June to 90.32 in July.\*

CAMFI, a joint venture between crowdfunding analytics company,TAB, Zhejiang University AIF as academic adviser, Hangzhou JZTData Science and Technology Co., Ltd and BBD UK, educates public bodies, financial analysts, academics, SMEs and corporates, on the strength of the online finance industry. It provides a single point of reference for all participants in [alternative finance](https://www.financedigest.com/demystifying-alternative-finance.html "DEMYSTIFYING ALTERNATIVE FINANCE") who want to quickly and easily check the health of the market.

The INDEX is constructed using three main attributes that measure the [market’s Scale](https://www.financedigest.com/increase-in-sales-of-human-insulin-market-to-scale-revenue-growth-in-the-global-market.html "Increase in Sales of Human Insulin Market to Scale Revenue Growth in the Global Market") (market volume), Efficiency (financing rate), and Transparency (information disclosure). It comprises of three component indices: Debt Sub-Index, Equity Sub-Index, and Reward Sub-Index, which together reflect the development of the [global industry](https://www.financedigest.com/truck-mounted-concrete-mixer-market-size-top-key-players-latest-trends-regional-insights-and-global-industry-dynamics-by-2022.html "Truck Mounted Concrete Mixer Market Size, Top Key Players, Latest Trends, Regional Insights and Global Industry Dynamics By 2022").

Key points

- The [global crowdfunding and marketplace finance industry](https://www.financedigest.com/global-crises-that-need-the-finance-industry.html "Global Crises That Need The Finance Industry") exhibited a slight downturn in July
- Segment-wise, the Reward Sub-Index was the major cause of the July decline
- Attribute-wise, the main declining driver was the [market Scale](https://www.financedigest.com/the-animal-feed-micronutrients-market-to-scale-through-new-launches.html "The Animal Feed Micronutrients Market To Scale Through New Launches") measures
- Industry Scale continued to shrink, most evidently in the Reward segment
- [Industry Efficiency improved](https://www.financedigest.com/plan-to-improve-german-rail-transport-may-worsen-congestion-industry-warns.html "Plan to improve German rail transport may worsen congestion, industry warns") significantly, with both Debt and Reward segments demonstrating growth
- [Industry Transparency underwent no noticeable changes](https://www.financedigest.com/popcorn-containers-market-important-changes-in-industry-dynamics-during-2017-2027.html "Popcorn Containers Market  Important Changes in Industry Dynamics during 2017-2027")
- Debt has stayed relatively stable, which is [expected given it is such a large and diverse market](https://www.financedigest.com/briquetting-press-market-expectations-growth-trends-highlighted-until-2028.html "Briquetting Press Market Expectations & Growth Trends Highlighted Until 2028")
- Equity has seen had a significant downturn in trading
- Rewards has had the biggest downturn, with significantly fewer campaigns, backers and amounts of money [raised](https://www.financedigest.com/hsbc-ups-price-targets-on-greek-banks-with-eurobank-piraeus-top-picks.html) for each campaign during the July period

Speaking of the slight downturn, Emily Mackay, CEO of TAB, comments: “With the [holiday season](https://www.financedigest.com/hasbro-ramps-up-toy-supply-for-holiday-season-to-beat-shipping-delays.html "Hasbro ramps up toy supply for holiday season to beat shipping delays") beginning it is not unexpected that June and July would be lighter months than May (which saw a grading of 101.49), with raises slowing up across the globe and in the northern hemisphere particularly. This also fits with the wider global [economic](https://www.financedigest.com/wall-street-bounces-oil-slides-as-markets-mull-murky-economic-picture.html "Wall Street bounces, oil slides as markets mull murky economic picture") picture.”

![chart](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/chart-4-1736843565719-compressed.jpg)

Despite the slight downturn demonstrated in June and July, data from TAB shows that the [industry](https://www.financedigest.com/abb-dispels-industrial-gloom-to-raise-full-year-outlook.html "ABB dispels industrial gloom to raise full-year outlook") is growing rapidly year on year:

- In 2014, campaigners in the UK raised over $2 billion via crowdfunding platforms. In 2016, they raised over $3.96 billion.
- China is demonstrating [huge growth](https://www.financedigest.com/quad-flat-no-lead-packaging-market-huge-growth-opportunity-between-2017-2027.html "Quad-Flat-No-Lead Packaging Market Huge Growth Opportunity between 2017-2027"), with companies raising $134 million via crowdfunding platforms in 2014. In 2016, they raised $2billion.
- France is also [seeing significant growth](https://www.financedigest.com/industrial-agitators-market-to-see-incredible-growth-during-2019-2027.html "Industrial Agitators Market to See Incredible Growth During 2019-2027"), with companies raising $70 million in 2014, and $159 million in 2017 to date.
- In 2014, [companies raised $5.4 billion in debt](https://www.financedigest.com/debt-strategies-for-funding-early-stage-companies.html "Debt Strategies for Funding Early Stage Companies") finance globally, increasing to $12.7 billion in 2016.
- In 2014, companies raised $345 million in [equity finance globally](https://www.financedigest.com/global-equity-funds-see-large-outflows-on-slowdown-worries.html "Global equity funds see large outflows on slowdown worries"), increasing to $766 million in 2017 to date.
- Rewards finance raised via crowdfunding [globally has increased from $680 million](https://www.financedigest.com/global-cryogenic-submerged-motor-pumps-market-to-create-an-absolute-opportunity-of-us-714-4-million-by-2030.html "Global Cryogenic Submerged Motor Pumps Market to Create an Absolute $ Opportunity of US$ 714.4 Million by 2030") in 2014 to $1.1 billion in 2016.
- The [Real Estate](https://www.financedigest.com/how-to-buy-income-producing-real-estate-without-your-own-money-or-credit.html "How to Buy Income-Producing Real Estate Without Your Own Money or Credit") industry raised $1.2 billion via crowdfunding in 2014. In 2016, it raised to $3.8 billion.
- The Capital Goods industry raised $751 million in 2014. This year to date, it has raised $1.4 billion.

Mackay continues: “Despite the slight downturn, the long-term health of the [alternative finance market](https://www.financedigest.com/meat-alternatives-market-expectations-growth-trends-highlighted-until-2031.html "Meat Alternatives Market Expectations & Growth Trends Highlighted Until 2031") is looking very strong. While the UK and US have traditionally been the biggest players in the space to date, we are seeing huge [growth across regions](https://www.financedigest.com/tea-pitchers-market-sales-will-witness-stellar-revenue-growth-across-top-regional-pockets.html "Tea Pitchers Market Sales Will Witness Stellar Revenue Growth Across Top Regional Pockets") including China, Japan, France and Italy. We [expect the growth of the last three years to accelerate over the next](https://www.financedigest.com/the-death-of-cards-and-what-to-expect-next.html "The death of cards and what to expect next") three.”

_\\* CAMFI and its sub-indices fluctuate at around 100; more than 100 shows that the industry is in a state of health and expansion, less than 100 shows that the industry is in a state of contraction. The greater the [index measure for the month](https://www.financedigest.com/world-food-price-index-falls-for-sixth-month-in-sept-fao.html "World food price index falls for sixth month in Sept -FAO"), the greater the degree of health expansion of the industry._


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