Industry News OFF3R Index

OFF3R Index: Record Breaking Month for Equity Crowdfunding

OFF3R Index March 2017
Aisling Browne
Written by Aisling Browne

The latest OFF3R Index Report revealed that just over £40 million was invested in early stage businesses in March 2017 via some of the leading Equity Crowdfunding platforms in the UK.

This record breaking figure smashed the previous monthly high, set back in July 2015, by over £13 Million; making March the most successful month for the total amount raised via equity crowdfunding platforms in the young life of the asset class by a considerable margin.

Equity crowdfunding had a very strong finish to 2016 but had so far seen a slow start to the year. Therefore, this record breaking month comes as a boost to the sector. The OFF3R Index delivers a monthly view on the amount raised via some of the leading equity crowdfunding platforms in the UK (including Crowdcube, SynidcateRoom,  and Seedrs).

March saw some larger raises that contributed to the record breaking figure and OFF3R partner SyndicateRoom had a particularly strong month. Some notable raises last month included Monzo on Crowdcube and Hibergene Diagnostics on SyndicateRoom.

P2P Lending Holds Above £300M for March

The latest report data also revealed that March 2017 was also a strong month for the P2P sector. Just over £300 Million was lent in March via the platforms that form the P2P element of the OFF3R Index, including Zopa, Ratesetter and Funding Circle. This was marginally higher than February’s data but slightly down from January’s year to date high.

Brewdog’s Recent Success

The strong equity crowdfunding figures follow on the heels of the news that Brewdog have raised £213 Million from American private equity firm, TSG Consumer Partners. The deal values the Scottish brewer at over £1bn, making it one of the first equity crowdfunding supported “unicorns.” Brewdog has over 55,000 shareholders from equity crowdfunding and according to figures release at their AGM; the value of shares held by those that invested in their first ever round have increased by over 2,700%. [1]

Comment from OFF3R

Lex Deak, CEO at OFF3R, commented that “the latest OFF3R Index data coming on the back of the Brewdog deal make for very interesting reading for investors in the sector. There certainly feels that there is now some very strong momentum behind the industry as we head towards the summer months.”

He went on to say that “we are seeing that equity crowdfunding continues to move more mainstream and investors are now starting to see some early returns. Investors need to continue to be mindful that equity crowdfunding is a long term and illiquid investment but this data does provide the industry with a real shot in the arm.”

Compare the latest Equity Crowdfunding and P2P Lending opportunities with OFF3R. Your Capital is at Risk.


Sources:

https://learn.off3r.com/will-shareholders-raise-glass-to-brewdog/ [1]

About the author

Aisling Browne

Aisling Browne

Aisling is the partnerships manager at OFF3R. Prior to OFF3R, she spent time working in New York at a property development business and subsequently for the British Red Cross in London. Aisling has a BA in Politics and International Relations.