Posted by Fifty Team

10 May, 2022

5 Insights into UK Crowdfunders

In a time when a record number of new companies are being registered and started every year, today’s aspiring entrepreneurs are seeking new and innovative ways to finance their business ventures.

According to Fundsquire, a growth funding company for UK businesses, 672,890 new businesses were founded last year, an increase of 4.2% compared to 2020 which equates to 1843 new companies per day. Transaction value is another upward trend within the UK crowdfunding sector, with some research estimating it will reach £49 million in 2022 and over £51 million by 2026.

Figure 1: A Fifty ‘network viz’ of the UK Crowdfunding market as seen on the Fifty platform.
Figure 1: A Fifty ‘network viz’ of the UK Crowdfunding market as seen on the Fifty platform.

To understand which audiences are jumping on this trend, Fifty’s Insights Team took a deep dive into the UK crowdfunding market. Using the Fifty Platform, we analysed the social followings of the country’s top crowdfunding platforms, including Seedrs, Crowdcube and Kickstarter. Here’s what we found:

Key takeaways

1. Business Leaders are seeking new opportunities.
2. Young Entrepreneurs want a new method for building business.
3. Crowdfunding is gaining ground amongst wider audiences.
4. Alternative Finance Professionals are drawn to disruptors.
5. Crowdfunding fosters independence.

1. Business Leaders are seeking new opportunities.

British Business Leaders and Finance & Investment Decision Makers made up two out of the three largest audiences within our entire study. The world of business has always kept an interest in both sides of investing - including those raising capital and seeking, and those selling and profiteering. Top influencers for these audiences were largely finance-related, with Seedrs, The Economist and The Financial Times all topping the list.

Figure 2: Top influencers amongst Finance & Investment Decision Makers included Seedrs, The Economist and Financial Times.
Figure 2: Top influencers amongst Finance & Investment Decision Makers included Seedrs, The Economist and Financial Times.

2. Young entrepreneurs want a new method for building business.

We also found a large group of younger, more tech-savvy professionals residing in the nation’s capital. Top influencers included tech icon and Twitter CEO Elon Musk, suggesting that this audience shares Musk’s love of innovation and may also be looking to disrupt the status quo with their investment decisions.

Figure 3: Top influencers amongst Millennial London Professionals included tech icon Elon Musk, as well as comedian Ricky Gervais and TV presenter James Corden.
Figure 3: Top influencers amongst Millennial London Professionals included tech icon Elon Musk, as well as comedian Ricky Gervais and TV presenter James Corden.

3. Crowdfunding is gaining ground amongst wider audiences.

Whilst our analysis did reveal significant interest in crowdfunding from Finance and Digital Professionals, we also saw engagement from a number of seemingly unrelated sectors. From Game Developers to Musicians, we can see that crowdfunding is attracting audiences with wider interests who are also looking to enter the world of investment. Bio keywords for these audiences had a clear creative skew, with titles such as 'singer' and 'songwriter' indicating that these audiences do not self-identify as investors.

Figure 4: Bio keywords for Musicians, one of the many creative audiences engaging with crowdfunding, included ‘singer’, ‘songwriter’ and ‘composer’.
Figure 4: Bio keywords for Musicians, one of the many creative audiences engaging with crowdfunding, included ‘singer’, ‘songwriter’ and ‘composer’.

4. Alternative Finance Professionals are drawn to disruptors.

Although crowdfunding is not entirely new, to the traditional financial world it’s still a small player. With the majority of companies still seeking investment from VCs or PE firms, Crowdfunding remains an emerging market, which would explain why pioneering AltFi and FinTech Professionals make up some of the largest audiences - at least for now. Top topics amongst these audiences include ‘blockchain’ and ‘bitcoin’, reflecting this audience’s interest in fintech disruption.

Figure 5: Crypto emerged as one of the Top Topics amongst Fintech & AltFi Professionals.
Figure 5: Crypto emerged as one of the Top Topics amongst Fintech & AltFi Professionals.

5. Crowdfunding fosters independence.

The ability to independently source your own funding via online crowdfunding platforms has enabled businesses without institutional support to find their own funding and do so on a global scale. Independent Creatives and Green Business Leaders are two prime examples of Tribes that are turning to crowdfunding to finance their ideas. Although top entities for these Tribes aren’t explicitly finance-related, the presence of terms like ‘Silicon Valley’ and leading global research university ‘MIT’, shows that this audience is passionate about innovation and finding ways to fund it.

Figure 6: Top entities amongst Green Business Leaders included prestigious US university MIT
Figure 6: Top entities amongst Green Business Leaders included prestigious US university MIT

To learn more about how Fifty can help your brand reach the new market of crowdfunders, get in touch with us at hello@fifty.io or book a free demo today.

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