Finding the right crowdfunding platform as an investor is no easy task with hundreds of rival brands vying for your money.
Investment experts are warning that the crowdfunding market is becoming too crowded and that a round of consolidation is likely just around the corner.
The likelihood is the market would then split into a few dominant platforms with niche brands exploiting specific markets, writes Stuart Smith of SEIS.co.uk.
The likely platforms to succeed are likely to be well-managed, effective at marketing and somewhere providing a safe and secure environment for investors, entrepreneurs and their cash.
A glimpse at how things may change – and who may lead the market in years to come – is offered in an article by Stuart Smith on SEIS.co.uk.
Based on data collected by Swiss crowdfunder investiere, a list has been compiled of Europe’s top five crowdfunding web sites by cash raised for projects.
Measuring performance
“The leading five are where they are because they inspire confidence and do what they say they will do – raise funds for projects and businesses,” said Stuart.
“Crowdfunding is still in its infancy, but the amount of money in the sector is huge already and is likely to keep on growing as the platforms provide an easy link between investors and entrepreneurs.”
Investiere points out that British crowdfunders have a huge advantage over their rivals due to the government’s Seed Enterprise Investment Scheme (SEIS).
“SEIS offers 50% income tax relief up to a maximum investment of £100,000 and capital gains tax exemptions on selling assets to raise investment cash, while the sale of SEIS shares is CGT-free,” said Stuart
“If a SEIS startup fails, investors can also claim loss relief against other income. SEIS tax breaks are available to expats, providing they pay income tax in the UK.”
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