Only two weeks ago the Sunday Times suggested problems in the crowdfunding market due to arguably over pricing of the Brew Dog issue. Now it appears mainstream firms are spotting opportunity for fees. Achieving a balance between regulation to protect investors and keeping costs down to make it attractive to issuing companies will be the key challenge to ensure its future.
Corporate finance houses including FinnCap and Grant Thornton are to list early-stage equity deals on a crowdfunding website in the first tie-up of its kind. The brokers plan to list a portion of investments that have typically only been available to wealthy investors and venture capitalists, offering the same terms to individual investors as institutions. People will be able to invest as little as £100. The arrangement demonstrates the extent to which City firms have begun to take equity and debt crowdfunding seriously as its growth accelerates.