Consolidation Period on the Horizon?

By AltFi on Wednesday 28 May 2014

Savings and Investment

The latest research from Knowledge Peers confirms the continued growth of the SME alternative finance space – but also foretells a stagnating in the surfacing of new providers.

The report states that in 2014 the “crowdfunding” sector – which encompasses debt, loan and invoice-based finance – will deliver £850 million of funding to UK businesses. That’s a 135% rise from 2013. The report also stated that there are 42 active funding platforms in the UK at the moment, with a further 133 donation/reward-based platforms. But according to Knowledge Peers, the rapid growth of the crowdfunding market – in terms of the emergence of new entrants – is about to slow down considerably:

“The large rush of new entrants exhibited in 2013 will lessen. The retention of 2013’s new entrants will certainly be tested in 2014. With the exit of 9 platforms (mostly in the later part of 2013 and the first quarter of 2014), we believe that the industry is on the start of a consolidation phase.”

For more fascinating insight into the SME alternative finance space, download the full report here

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