Equity–based crowdfunding grew by more than 600 per cent between 2012 and 2013, from just under £4 million in 2012 to slightly over £28 million in 2013. This is consistent with the rise of equity–based activities in Western Europe and elsewhere.
World Bank research on crowdfunding shows that, in the past three years, some form of equity crowdfunding has emerged in 27 nations around the world. Given the rapid expansion of crowdfunding markets internationally, particularly in the USA after the recent implementation of Title II of the JOBS Act, it is expected that equity–based crowdfunding will grow significantly over the next few years, depending on the policy decisions and the evolvement of the regulatory framework in the UK.
Data reported by Paul Niderer, CEO of the Australia Small Scale Offering Board (ASSOB), shows that, over the past seven years of equity crowdfunding in Australia, 83 per cent of funded firms are still in operation, significantly outperforming comparable firms who were financed using traditional means. Whilst the Australian ASSOB market has structural differences from the UK, it is nonetheless encouraging to see high survival rates among firms raising funds through equity crowdfunding.