Is Crowdfunding Comes of Age?

By David Prosser, Is crowdfunding the answer to the problems of small businesses struggling to raise the funding they need to grow and develop? The speed with which the alternative finance sector is now expanding suggests it just might be.

This is an industry on target to be worth £1.74bn by the end of this year, according to research just published by the innovation group Nesta – that represents an astonishing 161 per cent rate of growth since 2013. And this exponential growth looks set to continue: Nesta is forecasting that the figure will reach £4.4bn by the end of next year.

Of these sums, the lion’s share is accounted for by crowdfunding. Some of the money is going to individual borrowers through peer-to-peer loan sites such as Zopa, but it is small businesses that are raising the most cash from crowdfunding.

Peer-to-peer business lending has risen by 250 per cent over the past year to £750m, while equity crowdfunding platforms have raised a further £84m for small companies – that’s 410 per cent more than in 2013. Other types of crowdfunding, including invoice finance and bond issues, are also registering healthy gains. Crowd Caucus: Academic CROWDFUNDING
This, in other words, is an industry that is taking off. So much so, that many in the sector now see themselves as a credible rival to the banks, rather than as a backstop to be turned to only in the event that the banks say ‘no’.

It helps that crowdfunding has won so much support from policymakers in recent times. Formal regulation of the sector, introduced in April, was a crucial step. Now investors can be confident that crowdfunding platforms are being properly policed by finance watchdogs, they are much happier to put money into the sector.

Read More 

this Blog also publish on:

http://www.smeweb.com/index.php/blog/5031-crowdfunding-comes-of-age

Tags: , , , ,

HEADLINE NEWS

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news [...]

Crowdfunding For French CastlesNPRYou too can own a French chateau, in part, anyway. Romain Delaume, CEO of Dartagnans, tells NPR's Scott Simon about a crowdfunding effort underway to preserve La Mothe-Chandeniers. SCOTT SIMON, HOST: What if I told you that for about $60, you cou [...]

ForbesCrowdfunding Do's And Dont's From iFundWomen's Karen CahnForbesDuring our conversation, she was transparent in sharing that her first software company, VProud, failed because she “did everything backwards” and spent too much time trying to perfect the product. “Pe [...]

VentureBeat10 reasons the $1 million crowdfunding cap should be $20 millionVentureBeatIt's been18 months since the final rule of the JOBS Act went into effect, allowing equity crowdfunding. In those 18 months, everything proponents of the rule said would happen (and none of what [...]

Small Business TrendsButcher Shop Startup Discovers Crowdfunding Magic Via IntuitSmall Business TrendsWhat startup entrepreneur hasn't dreamed of borrowing Cinderella's fairy godmother or Aladdin's genie to make their every wish come true? While they weren't necess [...]

The IndependentFrench Chateau bought by 10000 people through crowdfunding schemeThe IndependentIn countries where castles aren't snapped up by The National Trust and immediately furnished with a tearoom and gift shop, other ways must be found to preserve historical buildings. The [...]

Crowdfunding sites help Boulder County residents raise money to pay for treatmentsBoulder Daily CameraHer health insurance, once she reached the $2,000 deductible, covered most of the chemotherapy, but she has been receiving extra treatment at the Helios clinic in Boulder and is parti [...]

CurbedReal estate crowdfunding expands into more niche marketsCurbedTo those unfamiliar with real estate crowdfunding, the Fair-Haired Dumbbell development in Portland may be just the kind of wacky, esoteric project one envisions when imagining what happens when strangers pool funds o [...]

The Union LeaderSCORE Q&A: Creative ways to find fundingThe Union LeaderQuestion: I have invented a product that assists in training young ballplayers to hit a baseball. I lack the financial resources to develop and market the product, so I've been thinking about launching a [...]

http://www.innovationaus.com/Brakes on equity crowdfundinghttp://www.innovationaus.com/The government failed to pass amendments to the equity crowdfunding regime before the end of the year, meaning private companies won't be able to access the funding method until August next yea [...]

CFB Finance

Marketwired

  • Crowdfunding
  • Crowdfund
  • Peer to Peer Lending
  • FinTech
  • Reg A+
  • Reg CF
  • Crowdfunding USA

Press Release

Live Crowdfunding .tv

What's Next Step in Regulation A+ JOBS ACTS Title IIII :L Interview : Steve Cinelli with Brian Korn Securities and Crowdfunding/Peer-to-Peer Lending Lawyer, Watch more video library | Conference | Interview | Campaign Showcase | Research | Education |