The global value of crowdfunding almost doubled in 2012, with a new report predicting it will double again in 2013, reaching $5.1bn.

Crowdfunding, which involves multiple investors making relatively small investments or donations to specific projects, raised $2.7bn in 2012, an 81 per cent increase on 2011 figures. During 2011 crowdfunding grew by two-thirds.

The authors of the Crowdfunding Industry Report, based on a survey of more than 300 crowdfunding platforms over the first six weeks of this year, expect this momentum to continue in 2013 and for donations to nearly double again.

There are several distinct varieties of crowdfunding, but making up the lion’s share of the market are donations and reward-based platforms, which grew by 85 per cent over last year. Lending-based crowdfunding, however, increased by the largest margin, raising £1.2bn – a rise of more than twofold.

The report, produced by crowdfunding consultancy firm Massolution, found that crowdfunding is still skewed towards the US, where many independent creatives and entrepreneurs use sites such as Kickstarter to get projects off the ground, but that the European market is also growing. Some $945m worth of crowdfunding was raised in Europe in 2012, an increase of 65 per cent on the previous year.

Massolution chief executive Carl Esposti said that the increase in 2012 crowdfunding income was in line with his company’s predictions, and predicted that equity-based crowdfunding would become more prominent in 2013, particularly in the US where legislation on investment is due to take effect later in the year.

Read more about crowdfunding for charities in a special feature in Fundraising magazine, April issue.