How Crowdfunding Took On Private Equity And Won

Until very recently, anyone running a private company in the UK would have automatically turned to the private equity or venture capital sectors when looking for their first slice of equity capital

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Commuters walk past cat posters at Clapham Common Underground station in south west London on September 16, 2016.Creative collective, Citizens Advertising Takeover Service (CATS), a project started by a group called Glimpse, have replaced many of the adverts in Clapham Common Underground station with posters featuring stray cats from Battersea Dogs & Cats Home and Cats Protection, after raising £23,000 from almost 700 people via crowdfunding website kickstarter. / AFP / Jack TAYLOR (Photo credit should read JACK TAYLOR/AFP/Getty Images)

Until very recently, anyone running a private company in the UK would have automatically turned to the private equity or venture capital sectors when looking for their first slice of equity capital. But research just published suggests this conventional route to fund-raising no longer offers the greatest prospects of success; online crowdfunding platforms are now more likely to provide the financing such companies are looking for.

Research agency Beauhurst’s analysis of investments into non-listed high-growth investments in the UK last year reveals that crowdfunding is now outperforming. The two largest platforms, Seedrs and Crowdcube, together accounted for 21 per cent of all such equity investment in the UK last year according to Beauhurst’s research.

Given that these two businesses didn’t even exist six years ago – Crowdcube launched in 2011 while Seedrs came along in 2012 – that’s remarkable. Between them, the two platforms funded more than 250 companies last year, with 45,000 investments from users in these companies’ equity.

Source: How Crowdfunding Took On Private Equity And Won

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Author: Stephen G. Barr, Group Publisher

Author, Syndicated Columnist, Editor In-Chief and Group Publisher at SGB Media Group, a social media marketing firm specializing in digital media content production, publishing, affiliate marketing, public relations and advertising. Over 25 years experience in retailing, advertising, website & online forum development, niche social networking, affiliate marketing, search optimization, branding and identity, site location, non-profit fund raising. Event planning, promotion, production and MC/Host at public events. Author, Editor & Publisher of 35 syndicated, digital publications utilizing multiple digital distribution channels in conjunction with launching and administrating national advertising campaigns for major Fortune 500 advertisers in partnership with Google, Ning, Facebook, Myspace, Yahoo, DoubleClick, LinkShare, PepperJam and other industry leading third party affiliate networks. Product development team member from conception to launch on many websites, tangible goods and organizational structure for start ups. Specialties: Public relations, retailing, advertising, website & online forum development, niche social networking, blogging, email campaigns, affiliate/performance marketing, search optimization, branding and identity, site location, event production & promotion, non-profit fund raising and tasteful, responsible adult content publishing. An internationally recognized and read social media columnist & pundit on The Examiner, Associate Content, Vator.tv, X-Biz.net and Technorati and his own affiliated sites.

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