London emerging as world leader for crowdfunding

Research suggests more crowdfunding campaigns are being run in the capital than in US

London is becoming the world leader for crowdfunding with the largest number of crowdfunding campaigns ran out of the capital than American cities such as San Francisco and New York, according to new data from research group the Crowdfunding Centre.

Mapping the locations of live campaigns running on the world’s 10 largest crowdfunding platforms, the group found that the UK is ahead of America; the country where “crowdfunding was born”, with a particular increase in the number of people taking an equity stake in businesses.

250,000 campaigns started in the world in July, with London leading several key industry categories including business, technology, gaming, publishing.

However, in terms of the total amount raised through crowdfunding, the US still remains at the top with almost £135m funding facilitated between April to June 2014.

Yet the average amount raised by each crowdfunding pitch during this period is similar; in the US it stood at $429.03, whilst the average crowdfunding campaign in Britain raised $415.19.

The findings are said to be “surprising” given that one of the world’s largest crowdfunding websites Indiegogo is based in the US and only 30% of its crowdfunding campaigns are those outside of the US.

Discussing the research, Crowdfunding Centre founder and chief executive, Barry James, said:

“That London has taken such a lead was a major surprise. Only two years ago the UK was pretty much nowhere.

“Technology is the enabler but people, the crowd, are at the centre. It is their decisions, wishes, needs and demands that are driving and directing this new economy. This is why it moves at a faster pace and with a very different heartbeat. The UK and London are playing a key role and we look forward to sharing in more detail.”

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