A new index has launched to track the performance of alternative investment markets. OFF3R is a new index that has launched in order to monitor the volume of deals passing through equity crowdfunding and p2p platforms. And in the week of the launch, the Index shows that equity crowdfunding raised a combined total of £216.25 million and P2P facilitated a combined lending of £2.6 billion over the last year.
To reach that figure, OFF3R analysed major equity crowdfunding platforms including Seedrs, Crowdcube, Syndicate Room, Angels Den, Envestors and The House Crowd. The P2P lending platforms examined were Zopa, Landbay, RateSetter, ArchOver, Marketinvoice, Lending Works, Funding Circle and Thin Cats.
‘Conditions are encouraging investors to consider alternative investments’
Lex Deak, CEO and co-founder at OFF3R said: “Our Index is part of our mission to educate and empower investors to make informed decisions and get better returns. We’re excited to be launching this report at such a critical time.”
“Traditional investors have had a tough year: interest rates hit record lows, inflation rates are set to increase and the economy is suffering from Brexit uncertainty. These events alongside low returns are encouraging investors to consider alternative investment options.”
A closer look at the crowdfunding figures shows that there may be growing pressure from mature investors for platforms to include larger companies. “As the market matures investors would like to see larger businesses turning to the crowd which may put pressure on the current £4 million limit,” says Deak.
“At the same time, we should see more standardisation in the way in which account and finance information is presented. This will make it easier for investors to be able to compare opportunities.
Meanwhile P2P continues to be popular with investors, the market increased amounts lent during the post-Brexit period, with September being the strongest performing month on record with £234 million being lent. The Government has bought into its potential and the market is increasingly robust.”