by: Grow VC Group
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UK is one of the most established and promising markets for alternative finance worldwide. However, data on the performance of the funded companies is still lacking, especially because the sector is still deemed not mature enough to provide reliable data. However, last week, Altfi Data, a research consultancy on alternative finance in the UK, released a report framing the state of companies that have to date raised money in the UK through the medium of equity crowdfunding.

The analysis was conducted focusing on 5 major British equity crowdfunding platforms, for a total of 367 platforms that have been financed on these portals to date. In particular 82 were successfully financed in 2013, which, according to the authors, is a statistically significant sample, as enough time has passed since funding to allow business plans to have been executed.

The research also highlights that the average volume of single equity crowdfunding campaigns has been steadily increasing since 2013. The internal rate of return on equity crowdfunding investments via the five major platforms since February 2011, instead, averages just 2.17 per cent. However, the authors estimate that, assuming that SEIS and EIS tax reliefs are fully utilised, that return increases to 33.79%.

Although, valid and reliable data are still difficult to obtain in such a young industry, this is a good first temptative of shedding some light on the trends and performance of companies finance via online investing, in order to understand better the impact of this new source of finance on local SMEs. Real time, historical, and index data is now also available on DealIndex dashboard.

Read the whole article on Crow Valley Blog.

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Grow VC Group The Grow VC Group is the world leading, global pioneer of securities crowd funding, peer to peer marketplaces, new investment models and global business development. Established in 2009, the Group has developed new investment models on six continents and continues to innovate the global market.

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This entry was posted on Monday, November 30th, 2015 at 9:00 am and is filed under Business Updates. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.