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Crowdfunding in the UK: A Snapshot

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Crowdfunding in the UK: A Snapshot

Crowdfunding Advisors, FundRazr Team

Helping our community get to the next level of crowdfunding success ?

Among the bits ’n bobs preoccupying Brit business types of late, find crowdfunding, a bloody vibrant and expanding element of the across-the-pond economy. Think we’re barmy? Have a butcher’s:

The Liberum AltFi Index has reported that the UK alternative finance sector (which includes peer-to-peer lending and invoice funding along with crowdfunding) broke the £1-billion barrier for the first time in December. “That 10-digit figure entrenches the sector’s deserved status as an increasingly viable alternative to traditional sources of finance,” the London-based investment brokerage said upon the release of these figures.

And according to a report undertaken by London innovation charity Nesta in partnership with Cambridge and the University of Berkeley, so-called “alternative finance intermediaries” raised almost a billion pounds in 2012. That represented an impressive 91 percent jump over the previous year’s gains. Inside of that, equity crowdfunding’s 2012 portion reflected a 618 percent hike in business volume. The report, “The Rise of Future Finance,” speculates that equity crowdfunding raised £28 million in 2012.

Crowdfunding in GB_FundRazr
And so while crowdfunding activity in Great Britain isn’t taking place at levels enough to knot your knickers, the bigger alternative-financing picture suggests the critical presence of a willingness to go down this road.

The Nesta report estimates that some 5,000 small and medium-sized British businesses have tapped “alternative platforms” for funding since 2011. Unknown is the count of those organizations that might not have ever come into existence were it not for their founders exploring this still somewhat unorthodox method of bankrolling them.

More than that, the alternative finance sector in Great Britain is gobsmacked by just-passed regulatory framework that facilitates crowdfunding and buzzing conjecture that the government may embrace it further with tax breaks.

Taken together, the picture’s a positive one for Limeys who fancy a bit of alternative financing in their business plans.

In 2013, FundRazr oversaw 1,139 campaigns in the UK, which raised $602,549 from a total of 23,330 donors. That’s about three times the campaigns and donors, and almost four times the dollars raised, over the previous year. A pretty cheeky growth rate for an emerging segment of the British economy, no? Cheers!

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