News Savings And Investment

Consolidation Period on the Horizon?

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.

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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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