Number of UK crowdfunding platforms grew by 50% last year

According to the innovation foundation Nesta, the total number of platforms grew from 53 to 80 last year, and a further seven have been launched since the beginning of this year.

Crowdfunding allows businesses and other organisations to draw funding from a wide range of investors in one go in return for rewards, equity or debt.

The research found growth across all categories, with the number of equity crowdfunding platforms doubling from 12 to 24 and the number of lending based platforms increasing from 14 to 21.

The findings are based on data from Crowding In, a resource which allows you to compare crowdfunding platforms.

Liam Collins, Senior Researcher at Nesta, said that a combination of modern technology and the financial crisis has made the crowdfunding market ripe.

He said: Weve seen phenomenal growth in the number of platforms over the last five years, across every type from reward-based crowdfunding to peer-to-peer lending. Crowdfunding has proved immensely popular, both in the UK and globally, and these figures show that this trend is set to continue.

Separate figures from Nesta published last year showed that almost 1bn was raised through alternative funding, including crowdfunding, in 2014, and predicts that 1.4bn will be raised this year.

Related: “Crowdfunding isn’t just for startups”?

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