Crowdfunding has doubled in popularity.
Investors take note.
In the first three months of 2016 crowdfunding sites saw a whopping 27m visits from Brits looking to move their money into more unusual investments.
According to research group Hitwise – a division of Connexity, which monitors the internet habits of some 3m people – the number of Brits seeking out these sort of crowdfunding opportunities has doubled over the last three years to an all-time high.
Just last year Crowdcube boasted that over £118m was invested into businesses via its platform, another all-time record.
And while we don’t know how many of these visits to crowdfunding sites in 2016 actually led to money being invested, we bet a fair amount did.
But not all crowdfunding is the same.
Younger Brits (18 to 34-year-olds) are 34% more likely to support projects on Kickstarter. They’re investing in ideas that they feel passionately about, and are less worried about actually making any money.
It makes sense, according to Hitwise this “reflects the cultural values of millennials, who are willing to fund the projects they believe in”.
On the other hand older internet users (aged 35+) are far more focused on getting a good return.
This older group is more likely to visit Funding Circle (186% more likely than millennials), Zopa (93% more likely), Crowdcube (45%) and Seedrs (34%), as these are services that you can make a decent return from, despite being more risky.
Hitwise says these figures show that older internet users are surprisingly open to avoiding traditional banks in favour of these kinds of unusual online investments.
That’s not surprising as the interest rates on most saving accounts remains painfully low.
And with the sheer number of people Googling ‘crowdfunding’ and looking to put their money elsewhere, the future looks bright for the fledgling sector.