Crowdfunding is a growing phenomenon. Cambridge University and its Centre for Alternative Finance emphasise this in a report published this week, in conjunction with Nesta and KPMG.
The report, Pushing Boundaries: The 2015 UK Alternative Finance Industry Report, is packed with statistics that highlight the growth in this exciting sector over the last twelve months. In 2015, the alternative finance sector grew to an impressive £3.2 billion, with 1.09 million individuals engaging in online investment activity.
Of the Alternative Finance industry, the equity-based crowdfunding sector showed the second highest rate of growth, jumping by 295%, from £84 million in 2014 to £332 million in 2015, and property investment accounted for a sizeable proportion of this: real estate crowdfunding accounted for a staggering £87 million, and that figure looks set to keep growing. Real estate investment is the single most popular sector for investment and, as the report states, ‘equity-based crowdfunding for real estate has the potential to become a substantial segment within the UK alternative finance industry’. This type of crowdfunding already has a significant presence in the US market and there is no reason why the UK will not follow suit.
People are investing in ever increasing numbers, and we feel that this is great news for everyone. The regions that most benefitted from crowdfunding in 2015 were London, closely followed by the North West and North East. It is no coincidence that these regions are undergoing significant regeneration, and the report states that they ‘are likely to experience the highest levels of growth in the coming years’.
Looking at the statistics, it is no surprise that Property Moose has grown so enormously over the last twelve months, with over £4 million now raised in capital. The report provides a promising outlook for the sector, and we hope our numbers will continue to grow dramatically into 2016.
References
https://www.jbs.cam.ac.uk/faculty-research/centres/alternative-finance/publications/pushing-boundaries/#.VsrjMpOLTBJ
