The UK leads Europe in crowdfunding and similar investment markets by a long way, according to new research conducted by Cambridge’s Judge Business School. The recent report concludes that the British alternative finance market, which primarily consists of crowdfunding and peer to peer lending, is now worth an eyebrow-raising £4.9 billion.
Meanwhile, the popularity of crowdfunding helped the alt finance market to more than double in size over the last year; a spectacular rate of expansion that reflects the attractive opportunities offered by these innovative forms of investment.
Britain has a strong lead over all other European countries, in terms of the per capita size of the market, as well as the absolute value of the market.
France has the next biggest alternative finance market after Britain overall, with a relatively tiny £389 million dedicated to the innovative forms of funding and investment. Meanwhile, Estonia is second behind the UK for alternative finance volume per capita.
Tania Ziegler, senior research manager on the project, said that the UK “has been ahead because of innovation and a regulatory regime that has allowed innovation to grow.”
Europe Plays Catch-up
As the large UK market works to offer investors and fund raisers better security, easier access and more flexibility, markets in other European countries are expanding fast, playing catch-up with the continent’s pace setter.
Expansion of 101 percent means that overall, Europe’s alternative finance market has more than doubled in size over the last year.
It seems that people all over Europe have woken up to the opportunities offered by crowdfunding and peer to peer lending, with unprecedented growth all over mainland Europe.
While the British market strives to provide better value for stakeholders, the European market has become more efficient than ever before. Smaller, more financially innovative economies like Monaco, Georgia and Estonia lead the way in terms of equity per person. Meanwhile, bigger countries have the largest total investment in alternative finance, which is unsurprising. These include France, Germany and the Netherlands.
The digital economy platforms that originally helped to give life to crowdfunding are still responsible for millions of pounds and euros of investment every day. The likes of CrowdCube, Kickstarter and GoFundMe have overseen a significant expansion in the type of grassroots crowdfunding that gave the practice its name. Many accessible investments, of all kinds, are currently offered through these gateways.
Crowdfunding has grown; aiding projects on a larger scale in more well-developed financial sectors. Prople and property investment are two good examples; previously, investment opportunities were only available to very wealthy large-scale investors, but now those with less cash can invest in the lucrative premium property market with Prople.
Find out more about the opportunity by contacting Prople on 01482 215990 or emailing email@example.com.