[Original content from www.nesta.org.uk]

This report presents the results from the first ever survey of UK alternative finance intermediaries.

Key findings:

  • The UK alternative finance market grew by 91% from £492m in 2012 to £939m in 2013
    This headline figure hides a diverse market that covers many different activities serving a variety of funding needs
  • The UK alternative finance market provided £463m worth of early-stage, growth and working capital to over 5,000 start-ups and SMEs in the UK from 2011-13, of which £332m was accumulated in 2013 alone
  • We can cautiously predicate that the UK alternative finance market will grow to £1.6 billion next year and provide £840m worth of business finance for start-ups and SMEs in 2014
  • Alternative finance intermediaries have been growing in size and impact in recent years in the UK as they attempt to provide much needed capital to individuals and businesses. This report presents the results from the first survey of the UK’s alternative finance sector. The research presents the size and growth of alternative finance activities such as crowdfunding and peer-to-peer lending in terms of amounts raised, ventures funded and individuals contributing funds.

UK alternative finance intermediaries facilitated £939m in funding to individuals and businesses in2013. This was up 91% on 2012. This figure represents a broad range of distinct funding models such as equity crowdfunding or invoice financing, all or which serve different customers and are growing at different rates. Many of these are delivering finance to UK SMEs. In 2013 £332m of SME financing was provided by alternative finance intermediaries.

We can cautiously predicate that the UK alternative finance market will grow to £1.6 billion next year and provide £840m worth of business finance for start-ups and SMEs in 2014

Authors:
Liam Collins, Richard Swart and Bryan Zhang.

DOWNLOADS

  • Download the infographic here.
  • Download the report here.

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