Crowdfunding has been exploding in popularity for both investors and companies in Britain over the last two years.
But we haven’t had much concrete data on whether it’s a good investment or not.
Until now.
Industry website AltiFi and law firm Nabarro have produced a report looking at the performance of 431 past equity crowdfunding campaigns from 367 companies on platforms Crowdcube, Seedrs, SyndicateRoom, Venture Founders, and CrowdBnk. The report covers 2011 to June of this year.
The results are, well, mixed. The report classifies the companies on a sliding scale from realisation — the company went public or was acquired at a price that gave crowdfunding investors a profit — to red — the company has shut down and investors have lost everything.
