How profitable to invest in crowdfunding projects: the results of British researchers
In the past two years, the UK crowdfunding movement has gained popularity among investors and founders. However, no research has been published so far on the success of such projects.
AltFi and the law firm Nabarro analyzed the results of 431 crowdfunding campaigns of 367 firms on the Crowdcube , Seedrs , SyndicateRoom , Venture Founders and CrowdBnk platforms . The researchers considered the time interval from 2011 to June 2015.
The conclusions were contradictory.
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• 302 companies attracted new investment after crowdfunding
• Only one project - E-Car Club - was bought by a third-party company. Europcar in 2015 absorbed the project. Investors received a refund of about 2.5.
• 58 companies attracted new investment and increased valuation. Investors have not yet returned their investments, but this is all
• 29 out of 367 companies "fizzled out" by closing their business
• 41 companies are missing. Their sites do not work, phones and other means of communication are not responding.
It is too early to judge any regularity: most projects are somewhere between success and failure.
If you combine the last two groups of projects, it turns out that 20% of investors lost their money.
According to RSA data for 2014, 55% of small and medium-sized businesses fail during the first 5 years of existence. In 2009, the British company Nesta noted that 56% of business angels do not return their investments.
Therefore, AltFi / Nabarro believes that 20% of investors who have invested in nowhere is a little. Could be much worse. Moreover, according to the data of the same Nesta, 62% of investors on crowdfunding platforms have not previously encountered such projects or have minimal experience, Business Insider reports .
Researchers note that for a more complete analysis of each of the companies must be observed for at least 5 years. It is during such a period of time that promising projects are gaining momentum.
AltFi / Nabarro experts urge crowdfunding platforms to be more “transparent” during campaigns, so that investors can better understand possible risks and evaluate statistics.
AltFi and the law firm Nabarro analyzed the results of 431 crowdfunding campaigns of 367 firms on the Crowdcube , Seedrs , SyndicateRoom , Venture Founders and CrowdBnk platforms . The researchers considered the time interval from 2011 to June 2015.
The conclusions were contradictory.
')
• 302 companies attracted new investment after crowdfunding
• Only one project - E-Car Club - was bought by a third-party company. Europcar in 2015 absorbed the project. Investors received a refund of about 2.5.
• 58 companies attracted new investment and increased valuation. Investors have not yet returned their investments, but this is all
• 29 out of 367 companies "fizzled out" by closing their business
• 41 companies are missing. Their sites do not work, phones and other means of communication are not responding.
It is too early to judge any regularity: most projects are somewhere between success and failure.
If you combine the last two groups of projects, it turns out that 20% of investors lost their money.
According to RSA data for 2014, 55% of small and medium-sized businesses fail during the first 5 years of existence. In 2009, the British company Nesta noted that 56% of business angels do not return their investments.
Therefore, AltFi / Nabarro believes that 20% of investors who have invested in nowhere is a little. Could be much worse. Moreover, according to the data of the same Nesta, 62% of investors on crowdfunding platforms have not previously encountered such projects or have minimal experience, Business Insider reports .
Researchers note that for a more complete analysis of each of the companies must be observed for at least 5 years. It is during such a period of time that promising projects are gaining momentum.
AltFi / Nabarro experts urge crowdfunding platforms to be more “transparent” during campaigns, so that investors can better understand possible risks and evaluate statistics.
Source: https://habr.com/ru/post/296564/
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