Why is crowdfunding growing?Can the crowd make successful investments?
@SyndicateRoom
Goncalo de VasconcelosCo-founder and CEO of SyndicateRoom
@SyndicateRoom
@SyndicateRoom
Key elements of crowdfunding
► Success is not money going in; Will be money getting out.
► Crowdfunding has to be sustainable;It has to work for investors.
Sophisticated DealsSophisticated Retail
Investors
Professional Investors
The Investor-led Model
@SyndicateRoom
@SyndicateRoom
Crowdfunding – but not as you know it
► Better for entrepreneurs:► +80% of deals successfully funded
► Better for investors:► 1 failure, 2 companies ceased trading out of over 70
companies
@SyndicateRoom
Investor-led model Company-led model
► Average investment£16,000 (21.000€)
► Average funding round£640,000 (860.000€)
► c80% of deals successfully funded
► Failure rate<3% (as of 31/3/2016)
► Average investment1
£2,177 (2.900€)
► Average funding round2
£147,000 (200.000€)
► c20% of deals successfully funded
► Failure rate3
c25%
Sources: 1 NESTA ‘Understanding alternative finance’
2 British Business Bank / Beauhurst 3 AltFi Data