In the wake of Brexit, investors are instead turning to Britain's booming stock market.
Perhaps not unexpectedly, 2016 is turning into a bit of a disaster when it comes to the popularity of alternative investments in the UK.
While the likes of CrowdCube, Seedrs, SyndicateRoom and others are all performing well when it comes to the success of their portfolio companies, the amount of money being invested is plummeting.
Between October and December 2015 more than £22m a month was being invested on average across the seven largest crowdfunding platforms, but between January and September 2016 this average fell by 25% to just £16.6m.
According to OFF3R, a marketplace that lets you invest across 30 alternative investment platforms and collected these stats, this downturn was triggered by concerns over the impact of Brexit along with rallying traditional stock market investments in 2016 as the FTSE 100 reached a record high.
While the figures for 2016 are shaping up to be depressing reading, OFF3R says it is optimistic that crowdfunding’s numbers will improve towards the end of the year and into 2017.
“We believe this bullish performance of the markets won’t last much longer and once the markets move to bear territory we can expect to see a lift in the equity crowdfunding industry,” it wrote.
“Early data from October indicates that this lift has already started in earnest with Seedrs announcing a record breaking month with over £20m committed on the platform last month.”
That may be true, but worries over Brexit won’t be disappearing any time soon, and for companies looking to raise money from ordinary investors via crowdfunding in these tumultuous times, that’s a big problem.