According to the 4th UK Alternative Finance Industry Report, Entrenching Innovation, published by Cambridge’s Centre for Alternative Finance at Judge Business School, equity-based crowdfunding now accounts for 17% of all seed and venture stage equity investment in the UK.
In particular, equity-based crowdfunding grew by 11% from £245 million in 2015 to £272 million in 2016. The growth rate has, however, substantially slowed down when compared to previous years.
Moreover, the institutionalisation of funding during 2016 continued to grow with 25% of equity-based crowdfunding being provided by institutional investors such as mutual funds, pension funds, asset managers, broker-dealers, family offices and banks.
With regard to key sectors and industries, most funded sectors for equity-based crowdfunding were Technology and Renewable Energies, respectively.
Similarly, in 2016, equity-based crowdfunding now accounts for 17.37% of all seed and venture stage equity investment in the UK in line with Beauhurst data.
Bryan Zhang, Co-Founder and Executive Director Cambridge Centre for Alternative Finance, commented:
Online funding channels, such as crowdfunding and peer-to-peer lending, have not only entered common discourse, but have also become embedded in the everyday infrastructure of finance; in many instances, they are now one of the default fundraising and investments channels for businesses, retail investors and institutions.
Download the full report HERE.