Skip to content
City PM
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Opinion
  • DE
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Opinion
  • DE
Friday 25 November 2016 1:00 am

Early-stage businesses could rake in £25bn next year from retail investors, who want more risk and higher returns

By: William Turvill

Add as a preferred source on Google

Early-stage companies could be raking in a combined £25bn from individual investors in 2017, a new report has estimated.

Retail investors are planning to take more risks next year and may be looking to early-stage companies for higher returns, according to an analysis of the sentiment and expectations of 1,000 retail investors by crowdfunding platform SyndicateRoom.

Read more: Equity crowdfunding: How to do your homework as an investor

The figures: £25bn for early-stage businesses

The study estimates that 58 per cent of the population holds an investment, with 40 per cent of those in a company equity.

With investors willing to reallocate around 14 per cent of their wealth into early-stage businesses, SyndicateRoom estimates that around £25bn could be be available to be transferred between large-cap to smaller businesses this year.

The platform estimates that this could, at historic return rates, see £7bn of wealth created for investors.

Investors feeling more risky

The look-ahead to 2017, published today, found 39 per cent of individual investors are more willing to take risks compared with a year ago, compared with 18 per cent who want to be more cautious.

The study also found that 50 per cent consider themselves to be “off-track” in meeting their financial goals.

Asked about moving their investments to early-stage companies, two-thirds of those surveyed said they saw the “prospect of higher returns” as a big incentive for doing so.

Read more: Investor confidence in UK shares falls amid Brexit "nervousness"

SyndicateRoom research estimates that early-stage companies generate 33 per cent compound annual growth rate (CAGR), compared with five per cent on the London Stock Exchange’s main market.

“In a low-yield environment, compounded by recent macro-uncertainty caused by Brexit and the US election, reliable information on high-growth investment is more important than ever,” said SyndicateRoom chief executive Goncalo de Vasconcelos.

“Our research discovered a fast-emerging part of the UK’s investment market that is hunting for greater growth and willing to accept a higher risk to achieve that investment return.”

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • Jobs and Money
  • Markets & Economics

Categories

  • Investing
  • Markets
  • Money

Trending Articles

  • I’ve taken the best train trips in the world. Here are my 5 favourites

  • Nothing fails to file accounts months after dissolution threat

  • Nottingham Forest owner Marinakis announces £210m stadium plans

  • Harry Styles at Wembley Stadium review: running through the grief

  • Burnham tax plans spark investor rush to bank capital gains

More from City PM

  • Jenrick vows to partly undo Reeves’ £25bn employer NICs rise – for Britons

    Politics
    UK politician Robert Jenrick announces new tax cut policy at a press conference, standing at a podium with a flag backdrop.
  • Tesla casts long shadow over SpaceX’s bumpy market debut

    Tech
    Elon Musk, chief executive officer of Tesla Inc., closes his eyes for a moment of silence, during a campaign rally for former president Donald Trump. Photographer: Justin Merriman/Bloomberg via Getty Images
  • London Tech Week day two: Talent alone won’t be enough

    Opinion
    Getty Images gallery showcasing recent business trends and innovations in technology with diverse professionals collaborating
  • Wayve hands London private market ‘major boost’ with $85m share sale

    Tech
    Wayve autonomous vehicle navigating a busy London street with iconic cityscape in the background
  • SpaceX lands record $75bn raise as Wall Street braces for mega debut

    Tech
    Tech billionaire Elon Musk has been asked to serve in Donald Trump’s cabinet. (Photo by Apu Gomes/Getty Images)
  • Boots moves closer to London float but billionaire Westons circle

    Retail
    A pair of stylish and durable boots showcased on a wooden floor, highlighting their craftsmanship and premium leather qual...
  • British pensions are about to bankroll the American tech revolution

    Opinion
    SpaceX Falcon 9 rocket launching into a clear sky during May 2026 mission, showcasing advanced aerospace technology
  • How the SpaceX IPO revealed a ‘back door’ into Britain’s capital markets

    Markets
    The FCA has appointed Liam Coleman interim chair of the FOS.

City PM — European politics, business and analysis.

Europe

  • Germany
  • France
  • Europe
  • UK & Ireland

Topics

  • Business
  • Markets
  • AI
  • Technology
  • Opinion
  • Energy

More

  • Politics
  • Economics
  • Fintech
  • Legal
  • Sport
  • Life

Company

  • About City PM
  • Editorial Policy
  • Corrections
  • Contact
  • Terms of Use
  • Privacy Policy
  • Cookie Policy
© 2026 City PM · Published by CityPM Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
About · Editorial Policy · Corrections · Contact · Privacy