Crowdfunding held back by lack of understanding by investors

CROWDFUNDING, used to finance everything from films to disaster relief projects, is not being fully taken advantage of due to a lack of awareness, suggests fresh research.

The findings suggest a majority – 59 per cent – of British investors have not heard of crowdfunding, despite 82 per cent saying they would find it exciting to get involved with new or interesting investment opportunities.

The survey of 1,000 private investors, commissioned by equity funding platform InvestingZone, found that two thirds of investors were also unaware of tax reliefs from the Seed Enterprise Investment Scheme for individuals that invest in early-stage companies.

Its research found 86 per cent felt there needed to be better access to unlisted or private investment opportunities for individuals.

β€œAt a time when low interest rates are causing many to look for better returns, unlisted equities, supported as they often are now by great tax incentives, are an attractive proposition,” said Jon Moulton, backer of InvestingZone and founder of private equity firm Better Capital.