Crowdfunding is the practice of funding a project or venture by raising monetary contributions from a large group of people, usually via internet platforms.
EQUITY (crowdfunding) PEER-TO-PEER (debt) CHARITY REWARD
Market increased to £3.2 billion Over one million people invested in crowdfunding P2P ISA 254,721 projects Real estate industry is now worth £700 million
Second fastest-growing sector in 2015 Grew from £84 million raised in 2014 to £332 million – a 295% increase Equivalent to 15.6% of total UK seed and venture-stage equity investment 68,306 investors involved 20% of projects accepted, 40% of projects funded Growth expected to continue throughout 2016
20,000 SMEs raised alternative finance through online channels £1.49 billion lent to UK SMEs 99% year-on-year growth 194% average growth rate from 2013 to 2015 Supplied the equivalent of 13.9% of new bank loans to UK SMEs 26% of peer-to-peer business loans were funded by institutional investors
Great idea Clear exit strategy Credible management team SEIS/EIS eligible Full financial forecasting in place Detailed business plan Active social media and PR campaigns, including a launch party Great at responding to investors’ questions Realistic valuation
Full financial forecasting Business Planning Valuation Company structuring Platform Analysis Social media work and campaign pitch assistance Investor Q&A