Equity Crowdfunding Counts for 17% of all Seed and Venture Stage Equity Investment in the UK, Study Shows

According to the 4th UK Alternative Finance Industry Report,  Entrenching Innovation, published by Cambridge’s Centre for Alternative Finance at Judge Business Schoolequity-based crowdfunding now accounts for 17% of all seed and venture stage equity investment in the UK.

Equity based crowdfunding proportion.JPG

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.

most founded sectors
Top Five Represented Sectors by Model (2016). Source: CCAF

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.


Equity based crowdfunding trend.JPG

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.