Repeated internet shutdowns in Iran are undermining the country's fledgling crowdfunding sector, with industry figures warning that investor trust and platform revenues have taken a significant hit, Zoomit reported on February 11.

Iran's nationwide internet blackout is estimated to have cost the country $60mn per day, with the shutdown entering its second week, and cumulative damage already exceeding $700mn-$840mn, according to calculations based on macroeconomic data by Emerging Markets Intelligence.

Ali Bayat Seyedshahabi, head of the crowdfunding commission at the Tehran ICT Guild Organisation (Nasr), said capital raised during periods of disruption fell noticeably compared to normal conditions.

Iran has experienced frequent internet outages and throttling in recent months, part of a broader pattern of state-imposed restrictions that have weighed on the country's digital economy.

"The damage is not just technical; it directly harms market trust," Bayat said. He added that outages had cut campaign traffic, reduced the conversion rate to investors, and disrupted payment systems.

Crowdfunding has grown in Iran as businesses struggle to secure traditional financing amid international sanctions and a strained domestic banking sector. The industry sits at the crossroads of Iran's capital markets and its digital economy, making it exposed to both regulatory uncertainty and infrastructure failures.

Bayat said many campaigns operate within tight funding windows, and even brief outages can derail an entire project.

The pressure has forced some firms to freeze hiring and shrink teams, he said, though the crowdfunding sector has proved more resilient than other parts of Iran's digital economy.

He also criticised the regulatory environment, saying sudden directives issued without consideration of how crowdfunding operates have made it harder for platforms and project owners to plan ahead.  Market participants face uncertainty over how rules may shift in the short term, Bayat said.

On January 12, Iranian security forces reportedly escalated their crackdown by conducting house-to-house searches to confiscate satellite dishes and Starlink internet equipment, targeting the limited technological resources available to citizens for accessing external communications.