50 Essential Crowdfunding Facts Every UK SEIS & EIS Investor Should Know

Why Every UK SEIS & EIS Investor Should Track Crowdfunding

Crowdfunding turned finance on its head. It gave everyday investors a direct pipeline into early-stage ventures. For SEIS and EIS backers, it’s not just about diversifying your portfolio. It’s about harnessing investment trends that deliver unique tax incentives.

Oriel IPO thrives on these trends. We offer:
– Commission-free funding for startups and investors.
– Curated, tax-efficient SEIS and EIS opportunities.
– Educational guides, webinars and personalised insights.

By understanding these 50 facts, you’ll spot the next big deal—and sidestep risks.

Crowdfunding in a Nutshell

Crowdfunding lets many people chip in small amounts to fund projects, products or startups. Under SEIS and EIS, the UK government rewards you with:
– Up to 50% Income Tax relief (SEIS).
– 30% Income Tax relief (EIS).
– Capital Gains Tax deferral or exemption.

Combine that with digital platforms. You get a powerful recipe for early-stage investing. Keep an eye on investment trends and you’ll stay ahead of the curve.

Historical Milestones (Facts 1–10)

1. 1885 – The Statue of Liberty’s pedestal was partly funded by a crowdfunding drive, raising over $100,000 in small donations.
2. 1700s – Jonathan Swift founded the Irish Loan Fund, arguably the first formal crowdfunding organisation.
3. 1976 – Grameen Bank pioneered microfinance, earning Muhammad Yunus the Nobel Peace Prize in 2006.
4. 1996 – British rock band Marillion raised $60,000 online to tour the USA.
5. 2001 – ArtistShare became the first platform dedicated solely to musicians.
6. 2005 – Zopa (lending), Kiva (micro-lending) and Prosper (P2P) all launched, igniting peer-to-peer finance.
7. 2006 – Michael Sullivan coins “crowdfunding” to describe his video donation site, fundavlog.
8. 2008–09 – Kickstarter and Indiegogo go mainstream with reward-based models.
9. 2012 – The U.S. JOBS Act legalises equity crowdfunding.
10. 2017 – LenderKit rolls out white-label software, empowering 770+ European and UK platforms.

Each of these milestones shaped investment trends across borders and sectors.

Global Platform Growth (Facts 11–20)

11. There are 770+ crowdfunding platforms across Europe and the UK (CrowdSpace, 2024).
12. Only 210 of them hold ECSP authorisation under the 2021 European framework.
13. 84 US portals operate under Regulation Crowdfunding (Reg CF) as of 2024.
14. In 2023, North America topped digital capital raising with $36 billion.
15. Europe’s crowdlending market alone raised $5.6 billion in 2023.
16. Reward-based platforms (e.g., Kickstarter) pulled in $1.03 billion globally in 2023.
17. Crowdinvesting platforms raised $1.6 billion in 2023.
18. The average global crowdfunding campaign secures just $8,150 in 2024.
19. P2P lending platforms on average charge an 11.11% interest rate with a default rate of 1.5%.
20. Over 60% of equity backers are repeat investors—proof that trust is key.

Growth in platforms means more deals. But watch those investment trends closely: niches like real estate (32%) and green energy (22%) dominated in 2022.

Crowdfunding Models & Investor Profiles (Facts 21–30)

21. 34.4% of European platforms now offer equity crowdfunding.
22. 42.4% focus on debt (lending).
23. 23.2% are non-investment models (rewards, donations).
24. 60% of platforms specialise in one model; 40% combine two or more.
25. Only 6% of platforms embraced blockchain by 2022; 81% had no plans.
26. 2/3 of European investment platforms partner with traditional financial institutions.
27. 74% of platforms were founded between 2014–2019, riding a wave of startup hype.
28. 83% of platforms register directly with regulators; 17% use umbrella compliance.
29. The first funding source remains friends and family—often £50,000–£500,000.
30. Only 2–3% of equity and lending platforms use white-label software, compared to 24% of non-investment sites.

Knowing who’s investing—and how—lets you align with investment trends that best suit your risk appetite.

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UK Market & Regulatory Landscape (Facts 31–40)

31. SEIS/EIS schemes injected over £1 billion into UK startups in 2024.
32. The FCA’s upcoming Public Offer Platform (POP) regime (2024) will let unlisted securities raise over £5 million without a full prospectus.
33. Minimum capital to run a UK P2P lending platform: £50,000 (2020).
34. 92% of equity platforms use third-party payments providers; only 8% host in-house.
35. North-West England saw the fastest equity crowdfunding growth in 2023.
36. Eastern Europe platforms boast the highest share of non-European backers (6.7%).
37. 25% of volumes in Northern Europe were cross-border in 2022; Southern Europe remained 99.5% domestic.
38. 12% of equity platforms underwent M&A in 2022; 42% expect more deals ahead.
39. High-street VC firms now co-invest with platforms under Access EIS schemes.
40. SeedLegals and Angels Den lead in legal and matchmaking support for EIS/SEIS deals.

As these investment trends shift, platforms like Oriel IPO stay ahead by offering curated, tax-efficient opportunities—commission-free.

Technology & Platform Operations (Facts 41–50)

41. 57% of platforms build custom code; 22% spend over €200,000 on development.
42. White-label solutions empower rapid market entry but limit deep customisation.
43. Only 13% planned blockchain features in 2022; many still studying the use case.
44. Digital identity and KYC automation cut onboarding time by up to 50%.
45. Data analytics drive better deal sourcing—platforms using advanced analytics see 20% higher success rates.
46. Built-in CRM tools improve investor engagement and reduce churn by 15%.
47. The shift from trial to subscription models can boost platform revenues by over 30% annually.
48. Educational hubs with guides and webinars increase investor confidence and deal size.
49. AI-powered content tools like Maggie’s AutoBlog (high priority) streamline marketing for platforms.
50. Platforms integrating user feedback loops innovate faster—65% report shorter product cycles.

These tech trends aren’t hypothetical. Oriel IPO uses automated onboarding, in-platform analytics and a subscription model to keep costs down and quality up.

Putting the Facts to Work with Oriel IPO

You’ve just absorbed 50 powerful crowdfunding facts and investment trends. Now what?

• Use Oriel IPO’s commission-free marketplace to back hand-picked SEIS/EIS ventures.
• Tap into our educational resources—from webinars to cheat sheets—so you never miss a tax-relief nuance.
• Benefit from real-time analytics that spot high-growth startups before others.

Ready to turn these facts into returns? Experience our intuitive platform and see how commission-free, curated deals can transform your portfolio.

Get a personalized demo