Britain is globally renowned for its alternative finance industry. Since 2011, government and industry bodies have responded to mounting market demand for non-traditional sources of finance and successfully fostered an alternative finance ecosystem geared towards innovation and growth.
Five years on, the alternative finance sector facilitated £3.2 billion in investments, loans and donations in 2015 – an astounding 84% increase on the previous year’s figures. The unprecedented scale and pace of industry growth is an impressive achievement, particularly in the way it has transformed the loan and investment options available to consumers, investors and businesses.
Banks no longer hold a monopoly on finance, with new products such as crowdfunding and tax-efficient investment schemes allowing businesses to access vital growth capital without the added burden of stringent regulations and time-consuming processes. For Britain’s thriving community of scaling SMEs and start-ups, alternative finance is claiming an ever-increasing share of the growth finance market. The fluidity and speed offered has been vital in supporting Britain’s bustling community of businesses, ranging from early-growth start-ups to more established SMEs.
With the level of business awareness towards alternative finance rising through government and industry programmes, debt and equity crowdfunding platforms will continue to claim a growing share of the scale-up economy. In support of this, innovation charity Nesta anticipates that debt crowdfunding could be worth more than £12 billion in a decade. Of course, this projection is based on the expectation that both investor and business demand will continue to grow, and that platforms are in a position to meet the changing nature of market demand.
To assess the current state of the industry, IW Capital today launches ‘Britain’s Alternative Finance Industry: Preparing for the future’. This new report assesses the current challenges and future prospects lying on the horizon for three of the UK’s leading sources of alternative finance – the Enterprise Investment Scheme (EIS), debt crowdfunding and equity crowdfunding. Available exclusively for Access 42 members, this report forms part of IW Capital’s long-term commitment to enhance investor and business awareness of the UK’s leading alternative finance products.
Access 42 is an exclusive community of sophisticated private investors. It gives our clients pre-emptive and unlimited access to our full suite of SME investment opportunities, industry research and VIP tickets to alternative finance conferences and exclusive networking events. To download your copy of ‘Britain’s Alternative Finance Industry: Preparing for the future’, join Access 42 today.