“In a world of post-recession government regulation, banks are even less willing than before to provide risky capital – and for a tech startup launching an experimental, innovative product, risk capital is just what they need,” argues crowdfunding consultant James Grainger.
It’s all simple economics.
As a consequence of this, UK ‘alternative finance’ market ended 2015 worth £3.2bn, according to London-based think tank Nesta, constituting 12% of lending to British small businesses. Donation-based crowdfunding grew by 507% over a single year, with equity-based campaigns seeing a 295% increase, Tech City News reports, with Britain’s top five equity crowdfunding platforms facilitating a combined investment of more than £48m in the first quarter of 2017 alone, according to business data platform Beauhurst.
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