by Emma Cullen, In the same week that Britain was named, ‘self-employment capital of the world,’ yet another feather has been added to the UK’s cap, as London is proclaimed the ‘capital of crowdfunding’.
The research group, Crowdfunding Centre revealed that London has overtaken both New York and San Francisco as the global crowdfunding capital, as it created more campaigns in July than any other city in the world.
The figures come as the research centre launch an interactive map displaying live campaigns run by the 10 largest crowdfunding platforms in the world, and showed that by the end of July London was leading the key categories including business, technology, publishing, and gaming, making it the top performing centre.
Paving the way for innovative startup and equity finance, Britain boasted 41 new crowdfunding projects each day and 12 per day in London in the first half of 2014. Over £33m was reported to have been raised between January and June this year UK-wide, £6m of which was crowdfunded in the capital.
Barry James, the centre’s founder, remarked that he was ‘stunned’ by the results.
“That London has taken such a lead was a major surprise – only two years ago the UK was pretty much nowhere,” James commented.
While America – the original home of crowdfunding – still lays claim to the most money raised, the UK is hot on its heels, and the news comes poignantly close to George Osborne’s declaration that ‘We stand at the dawn of new era’ of innovative finance.
“The technologies being developed today will revolutionise the way we bank, the way we invest, the way companies raise money. It will lead to new products, new services, new lenders,” said the chancellor.
James went on to confirm: “What we have seen has revolutionised our thinking and our understanding of what’s happening to the world, its economy and fast-evolving global culture. Technology is the enabler but people, the crowd, are at the centre. It is their decisions, wishes, needs and demands that are driving and directing this new economy.”
A London summit follows the announcement, to assess further potential for crowdfunding within the UK and EU.