Finance The Legal Framework Of Crowdfunding In The UK

When talking about crowdfunding in Europe, the UK is without a doubt the most important and active market. According to Forbes, the UK crowdfunding industry had a net worth of €3.56 billion by the end of 2014, leading the continent. Quantified in money raised, the European crowdfunding scene raised €2.96 billion in total and the UK accounted for three-quarters of it.

Focusing on the renewable energy crowdfunding industry, the UK has always had a strong presence with renewable energy focused platforms that raise the largest amounts in the world, according to Solarplaza’s Renewable Energy Crowdfunding Map. These are remarkable numbers which cannot help but raise questions: Why has the UK taken such a big leap when it comes to crowdfunding and why have the rest of the European markets not followed suit in the development of crowdfunding?

There might be a lot of different explanations for that; it could be the high demand for alternative financing for renewable energy projects or the “first-mover” advantage, given that the concept of crowdfunding has been around in the UK for about a decade. However, what seems to be the most important factor to facilitate such a great advance in alternative finance is the timely and supportive regulatory system. A system that is highly distinguishable from the rest of the European markets’ ones and in which we take a better look in the following detailed overview by Eversheds, part of our recent Crowdfunding Legal Framework Overview report.