A new study by SmallBusinessPrices.co.uk uncovers the sectors and countries where the introduction of the alternative finance marketplace is being felt the most, and the current value of the industry.
- Blockchain and Video Games Named The Most Lucrative Industries For Crowdfunding – 31 Blockchain crowdfunding projects averaged funding of over $177 million, whilst the Video Game sector that has seen the most projects to exceed $1 million, with 38 in total.
- 3D Printing, Wearable Tech, and Software – All make the top 10 most successful crowdfunded industries and have a combined total funding of $17.1 million
- The UK Is Paving The Way – $20 billion of alternative finance funds has been raised, this is over double the volume of all other countries combined.
In recent years, Alternative Finance funding channels that exist outside of the traditional finance system have revolutionised how small and medium enterprises are able to operate. The rapid growth of the Alternative Finance industry, in areas such as Crowdfunding, is making it increasingly less ‘alternative’, but where is this development seen the most?
Comparison service SmallBusinessPrices.co.uk has taken an in-depth look at the countries and sectors where the development of the alternative finance marketplace is being felt the most, and the current value of the industry.
Alternative Finance by Country
Peer-to-peer lending, online alternative finance, and crowdfunding are 3 of the most prominent forms of alternative finance which many countries have started to adopt. Below are some of the countries that have been quick to get involved:
- UK Out in Front – In a study of just under 20 European nations, the United Kingdom ranks well ahead of its continental counterparts with an estimated volume of $20 billion raised through alternative finance according to recent figures. This figure is over double the volume of all other countries combined.
- Germany and France Top Mainland Europe – While both nations have a long way to go to catch the figures showcased in the UK, impressive levels of P2P lending and Equity-Based Crowdfunding makes them the only other countries to exceed a $1 billion volume across the key alternative finance markets.
Crowdfunding by Sector
Arguably the most mainstream form of alternative finance in terms of awareness, Crowdfunding has provided normal people to impact the success of business enterprises of any size. We’ve analysed of the most successful industries and the level of funding they have been able to gather.
- Blockchain Most Funded – Blockchain technology has seen its popularity and value increase hugely in recent years, particularly with the recent wave of interest in the Cryptocurrency world. In our research, we found 31 Blockchain crowdfunding projects which averaged funding of over $177 million.
- Value in Video Games – While Blockchain is undeniably the most lucrative industry for Crowdfunding, it is the Video Game sector that has seen the most projects to exceed $1 million, with 38 in total. The still-unreleased ‘Star Citizen’ game is the most funded individual project with an estimated $217 million gathered.
- Computing Hardware – Completing this top scoring tech trilogy of industries is Hardware, with 32 $1 million+ projects and average funding of $2.6 million.
Alternative Finance vs GDP
In such a rapidly growing industry, it is equally important to look at how alternative finance volume compares to a country’s GDP per population. We’ve worked out the funding volume per capita and compared its results with the nominal GDP per capita for each nation. Below are some of the notable results.
- Latvia – Latvia boast an alternative funding total of $299 per person, remarkable when considering their relatively low GDP and that the average funding volume per person across all countries analysed was $60.
- Estonia – With a population of just over 1 million people, Latvian neighbours Estonia showcasing a progressive financial marketplace with $180 raised per person.
- UK – From the larger economies and more densely-populated nations, the UK performs incredibly well. Across the UK the funding volume per person is $276, which only Latvia tops.
To read more about Alternative Finance or to view the full list by SmallBusinessPrices.co.uk, click here.