CONSIDERING CROWFUNDING: A REPORT

Envestors surveyed 200 UK scale-up companies to learn about their experiences with crowdfunding. What we uncovered was an industry plagued by myths, that ultimately results in lower success rates.
FIND OUT WHAT IT TAKES TO BE SUCCESSFUL AT CROWDFUNDING WITH OUR 2019 REPORT.

Key Findings

In March 2019, we conducted a survey of 200 UK-based companies, who had used equity based crowdfunding in the last three years, to find out whether crowdfunding as a method to raise funds is meeting the needs of start-up and scale-up businesses.  We found that crowdfunding has failed to evolve since its digital genesis in 2011 and businesses are ready for a change.

  • 52% of companies stated that crowdfunding has nothing at all to do with fundraising

    52% of respondents cited brand exposure, customer acquisition and PR as their primary reasons to crowdfund - only 24% gave raising funds as their main motivator.

  • 42% of companies listed ' the inability to control who views my sensitive business documents' among their beefs with the current crowdfunding model

    Respondents took issue with the lack of control offered by the current model of crowdfunding, adding the inability to communicate directly with investors (38%), paying success fees for investment generated independently from my own sources (28%) and investors being charged to invest (28%) to their list of concerns.

  • Up to 69% of funds raised came from businesses' own networks and not the crowdfunding site's investors

    The proportion of funds raised via a businesses own network, as opposed to the crowdfunding site's investors, ranged from 19% to 69% with a median of 37%, proving the necessity of having your own network.

  • 80% of businesses are open to using an own-label platform for their next fundraise

    42% of our respondents were unhappy with how how much control the crowdfunding facilitator retained during their fundraising activities, 38% took issue with the inability to communicate directly with their investors and 28% with the fact that their crowd was charged by the facilitator to invest.

Envestry for Scale-ups

Your own fundraising platform


Envestry for Scale-Ups is a fundraising platform. Fully regulated and customisable, it gives growth businesses total control over their raise - and the best chance of reaching their funding target. 

Learn more