Crowdinvesting - United Kingdom

  • United Kingdom
  • The total transaction value in the Crowdinvesting market in the United Kingdom is forecasted to hit US$0.6bn in 2024.
  • When compared globally, the United Kingdom leads with the highest transaction value of US$0.6bn in 2024.
  • In the United Kingdom, Crowdinvesting is experiencing a surge in popularity among tech startups seeking alternative capital raising options.

Key regions: Europe, Singapore, United States, India, China

 
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Analyst Opinion

The Crowdinvesting market in United Kingdom has been experiencing significant growth in recent years, driven by customer preferences for alternative investment options and the rise of digital platforms.

Customer preferences:
Investors in the United Kingdom are increasingly turning to crowdinvesting as a way to diversify their investment portfolios and access opportunities that were previously only available to institutional investors. Crowdinvesting allows individuals to invest in startups, real estate projects, and other ventures, giving them the chance to support innovative ideas and potentially earn attractive returns. This appeals to investors who are looking for higher-risk, higher-reward opportunities outside of traditional financial markets.

Trends in the market:
One of the key trends in the crowdinvesting market in the United Kingdom is the growing popularity of equity crowdfunding. This allows individuals to invest in early-stage companies in exchange for equity ownership. Equity crowdfunding platforms have gained traction in the United Kingdom due to regulatory changes that have made it easier for startups to raise funds from a large number of investors. This trend has enabled a broader range of investors to participate in the growth of promising startups and has contributed to the overall growth of the crowdinvesting market. Another trend in the market is the emergence of sector-specific crowdinvesting platforms. These platforms focus on specific industries such as real estate, renewable energy, or technology, allowing investors to support projects that align with their interests and values. This trend reflects the increasing demand for investment opportunities that have a social or environmental impact, as well as the desire for more specialized investment options.

Local special circumstances:
The United Kingdom has a well-established financial services sector and a strong entrepreneurial culture, which has created a favorable environment for the development of the crowdinvesting market. London, in particular, is known as a global hub for fintech innovation and has attracted a significant number of crowdinvesting platforms. The presence of these platforms, along with the supportive regulatory framework, has helped to drive the growth of the market in the country.

Underlying macroeconomic factors:
The growth of the crowdinvesting market in the United Kingdom is also influenced by underlying macroeconomic factors. The low-interest-rate environment has made traditional savings and investment options less attractive, leading investors to seek higher-yield alternatives. Additionally, the availability of digital platforms and advancements in technology have made it easier for individuals to invest in crowdinvesting opportunities, further fueling the growth of the market. In conclusion, the crowdinvesting market in the United Kingdom is experiencing significant growth due to customer preferences for alternative investment options, the rise of digital platforms, and the supportive regulatory environment. The popularity of equity crowdfunding and sector-specific crowdinvesting platforms, along with the underlying macroeconomic factors, are driving the development of the market in the country.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

Overview

  • Capital Raised
  • Average Deal Size
  • Global Comparison
  • Number of Deals
  • Analyst Opinion
  • Methodology
  • Key Market Indicators
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