If London is the world’s capital of crowdfunding, the US is the leading nation globally: in fact, according to the same statistics, the US still hosts the largest crowdfunding platforms and it is the leader in terms of total capital raised, with almost £135 million in the second quarter of 2014. However no city predominates, leaving to the British capital the primacy.
It is not surprising that it is these two countries that are competing for leading positions in crowdfunding: the phenomenon developed at almost the same pace in both markets and they are both characterized by a culture that is strongly oriented towards entrepreneurship and with a fairly high risk appetite. The two countries also host one of the main early stage finance markets in the world, with a well developed VCs and Business Angels scene, which recently showed an increasing interest in this financial innovation.
Crowdfunding is often said to disrupt the traditional financial services market, adding an alternative to existing early stage finance sources. It would be good to see, in a few years from now, that this new financial mechanism has also been able to liven up the dormant early stage financing scene of some countries that usually lag behind compared to the US and the UK, allowing them to compete for a title of crowdfunding leader. This is how crowdfunding would unleash its full disruptive potential, revolutionizing the early stage capital market worldwide. We are confident it is just a matter of time.
ReferencesHesse, J. (2014). London Is Now The World's Crowdfunding Capital. Forbes.
Moules, J. (2014). London Emerging as World Leader in Crowdfunding. FT.com
Image credit to Doug88888 http://bit.ly/1tesxzY
Born and raised in Milan, Italy, Irene is an International Business graduate, with a strong interest for innovative ideas that can simplify our lives.
During her studies, she co-founded an online community for sportspeople and worked in marketing positions at Ogilvy & Mather Advertising and at the European Business Angel Network, in Brussels. She is a passionate blogger about crowdfunding and the startup ecosystem.