Crowdfunding: Where Angels Fear to Tread?
Dan Somers, Managing Partner at London-based Boundary Capital Partners, says that crowdfunding is a phenomenon of our age:
“Whilst most crowdfunding is debt-based, UK equity crowdfunding (our focus here) rose from £84m in 2014 to £332m in 2015, up 295% according to research by Cambridge University.
It has certainly provoked many investment professionals to question their own roles: Figures from Beauhurst show that VC investing has declined every year since 2011 whilst equity crowdfunding has grown every year with multimillion pound raises more and more common. Many IFAs and wealth managers we’ve spoken to have commented that clients have been investing in crowdfunding outside of their consultation or advice.
The two big questions that spring to mind are: what’s driving it, and is it ‘good’ or ‘bad’?