Market Overview
The UK crowdfunding market size reached USD 1,058.7 Million in 2024 and is projected to reach USD 2,146.6 Million by 2033, growing at a CAGR of 8.17% during 2025-2033. This growth is driven by expanding niche sectors like renewable energy and technology, rising popularity of equity crowdfunding democratizing startup investments, and increased adoption of advanced technologies such as AI and blockchain to enhance platform efficiency and security.
Study Assumption Years
- Base Year: 2024
- Historical Year/Period: 2019-2024
- Forecast Year/Period: 2025-2033
UK Crowdfunding Market Key Takeaways
- The market size in 2024 was USD 1,058.7 Million.
- The expected CAGR for the period 2025-2033 is 8.17%.
- Forecasted market size is USD 2,146.6 Million by 2033.
- The market is increasingly focused on niche sectors such as renewable energy, creative arts, and technology startups, attracting investors with aligned interests.
- Equity crowdfunding has grown in popularity, enabling investors to own stakes in early-stage enterprises with regulatory frameworks by the FCA enhancing protection.
- Advanced technologies, including artificial intelligence and blockchain, are being integrated into platforms for better project success prediction, security, and transparency.
- Data analytics tools provide deeper insights into investor behavior, aiding targeted marketing and engagement strategies.
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Market Growth Factors
Another trend in the UK crowdfunding space is towards sector and specialism focused investment․ More crowdfunding platforms are focused around particular sectors, such as renewables, the creative industries, and technology start-ups, which allows the investor to select projects close to their personal beliefs․ This improves project visibility and appeal, access to an investor community that responds more actively, project success rate and innovation in emerging fields․
Equity crowdfunding is the process of crowdfunding for early stage startups and scale-ups from many investors, and has become an important source of capital for this market․ In the UK the FCA regulates equity crowdfunding․ Over the years, public appetite for direct investments has grown together with the FCA’s regime, which provides investor protection and information, and the development of equity crowdfunding as a major alternative source of funding․
Other advanced technologies such as artificial intelligence make it easier for crowdfunding platforms to decide on the viability of a project, as well as predict its chances of succeeding․ Blockchain technology can be employed to ensure secure transactions and keep a transparent record of all transactions․ Data analytics specifically is used to analyze investor purchasing patterns and behavior to inform marketing and engagement strategies․ In general, these technologies improve platform efficiency, reduce risk, and raise the level of trust between investors and project creators․
Market Segmentation
Type:
- P2P Lending: The market includes peer-to-peer lending platforms that facilitate direct borrowing and lending between individuals without traditional financial intermediaries.
- Equity Investment: Investors acquire equity stakes in early-stage enterprises, gaining a share in their potential success and growth.
- Hybrid: This includes crowdfunding models combining features of equity and debt or other mechanisms, offering diversified investment options.
- Reward-based: Platforms provide non-financial rewards or incentives to contributors in exchange for their support.
- Others: Encompasses other crowdfunding types that do not fall into the above categories.
End Use:
- Entrepreneurship: Crowdfunding platforms support startups and new business ventures, providing necessary funding.
- Social Cause: Funding is raised for charitable projects and initiatives with social impact objectives.
- Movies and Theater: This segment supports creative projects in the entertainment industry.
- Real Estate: Crowdfunding funds real estate developments and property investments.
- Music: Platforms assist musicians and related projects with funding.
- Technology: Targets innovative technology startups and product developments.
- Publishing: Crowdfunding solutions for authors and publishers to finance publishing projects.
- Others: Includes other uses not specified above.
Regional Insights
London stands out as a dominant region within the UK crowdfunding market, along with key regions including South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, and Others. These regions collectively support the market growth and offer diverse opportunities for crowdfunding platforms and investors.
Recent Developments & News
- November 7, 2023: Crowdcube, Europe’s largest private market investment platform, acquired Semper, a secondary liquidity platform. Crowdcube enabled 1300 companies to raise over £1 billion collectively and aims to create the largest private market investment platform in Europe.
- January 23, 2024: Vestiaire Collective launched a crowdfunding campaign aiming to raise €1 million ($1.09 million), pricing shares at €1.78 each and valuing the company at €1.1 billion. The campaign is open across Europe and the UK.
- June 4, 2024: Prosper, a UK wealthtech company, announced a £1m crowdfunding raise. Backed by notable investors, Prosper aims to disrupt wealth management with technology-focused, lower-fee solutions.
Key Players
- Crowdcube
- Vestiaire Collective
- Prosper
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