- Just 28% of Britons say they’re fully on track to achieve their financial priorities
- Strong, healthy appetite to invest in equities, but little knowledge of how to access stocks and shares
- Technology sector hailed as the investment hero by UK consumers
Cambridge, UK – 9 May 2016: SyndicateRoom, the equity crowdfunding platform which pioneered the investor-led model, today reveals the results of a nationwide survey, which has delved into the financial habits of UK consumers.
- Equity investment needs to be simplified to attract individuals
Britain is a nation of savers and investors, with over half of respondents saying that if they were given £10,000, they would either save it or invest it. 22% of respondents saying they would spend the money and 17% who said they would use the money to pay off debt. While the average UK adult now has around £173,000 in personal assets, the majority of those who could be motivated to invest in equities have been put off because they cannot find a simple and easy way to do so.
- Everyday investors attracted to public markets, but awareness is low
More than half (53%) believe their net worth would increase if they invested in equities. Furthermore, 40% said that they would have invested in some IPOs had they known about them. In addition, SyndicateRoom has identified that 15% of the UK population has never invested in an IPO but have the ability and desire to do so. With three-quarters of individuals surveyed believing that they are better off looking after their own personal finances, rather than using a financial advisor or wealth manager, the public equity markets are missing out on a vital source of retail investment demand.
- The technology sector is the industry of choice for retail investment
The results revealed a strong appetite to invest in technology, with this being the preferred sector for 46% of those looking to invest in companies. Crowdfunding has also been spotlighted as supporting growth businesses, with 75% stating that crowdfunding has democratised the way people invest in businesses.
- Younger investors are more willing to take greater investment risk
Millennials see higher-return investment as a means to affording a deposit for a first home. Over a third of millennials (aged 18-30) are focussed on buying a first home, as a priority for their personal finances, though only 20% of those are on track to achieving that goal. That seems to be the driving factor behind a greater appetite for riskier investments among younger generations. 50% of respondents aged 18-30 said that they were willing to take high risks with their investments, compared to those over the age of 50 with half the risk appetite and only 25% of respondents willing to take high risks.
- Older investors are most likely to be self-taught at financial know-how
Individuals over the age of 50 are most influenced by financial press for their investment decisions. By comparison, only a sixth (17%) of potential investors under the age of 30 read financial press, and are three times as likely to source their financial information from friends and family (45%) showing a desire to learn more about the public markets and an active discourse among younger generations. 28% of respondents claim they don’t source any financial investment information.
- Stay-at-home millennials are adversely affecting their parents’ financial position
The mean age at which children will be financially independent and not living at their parents’ home is aged 27 years, and only a quarter (27%) of parents with children living at home are on track with their financial priorities.
- Women, in general, face greater obstacles to investment
While almost two thirds (63%) of men believe they determine the investment decisions that affect their future, around one in five (19%) women say they have no input at all to such investment decisions. That is despite a higher level of education among women surveyed, compared with men. With total assets worth an average of £68,000 less than men, a lack of opportunities to invest seems to be the key reason why almost a quarter of women (23% compared with 17% of men) feel they are way off track when it comes to their financial goals and priorities.
The launch of the report, entitled Bridging the Equity Divide coincides with SyndicateRoom’s plans to announce its fundraise. It previously raised £1.2million, via its own crowdfunding platform in May 2015 in just 33 hours, spreading the number of owner-advocates of the business. The funding round launched today is expected to raise £2.3million.
Gonçalo de Vasconcelos, CEO and Co-Founder of SyndicateRoom said, “The results of this survey support what we’ve long suspected – that there is a strong and healthy appetite for equity investment in the UK. Many factors have contributed to this, from social change to economic pressures. However, while the desire from consumers is evident, so are the barriers. It’s clear that the public’s money isn’t working as hard as it should be. So it’s crucial that as an industry we support investors to ensure simple, transparent and easy access for all.”
In March 2016, SyndicateRoom entered the equity capital markets by becoming a member of the London Stock Exchange, enabling crowdfunding investors to easily participate in IPOs and placings, on the same terms as institutional investors. With this new capability, SyndicateRoom can support companies from idea stage, right through to IPO.
A full copy of Bridging the Equity Divide, can be obtained here /the-equity-divide
For further information please contact:
Katie de Cozar Rushforth
+ 44 (0) 7557 307 769
Rob Mindell / Darius Alexander
+ 44 (0) 20 3727 1000
Notes to Editors
SyndicateRoom is an equity crowfunding platform which pioneered the investor-led model. By allowing members to co-invest alongside experienced investors in highly sophisticated opportunities, they get access to the same economic terms as the lead investors. This applies to opportunities from early stage private companies to premium segment listings on the main market of the London Stock Exchange.
SyndicateRoom was founded by Gonçalo de Vasconcelos and Tom Britton, and its own lead investors and advisers include UK Business Angel of the Year Peter Cowley and super-angel Jonathan Milner.
SyndicateRoom is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange. www.syndicateroom.com
Risk Warning: Investing in early-stage businesses involves risks, including illiquidity, lack of dividends, loss of investment and dilution, and it should be done only as part of a diversified portfolio. SyndicateRoom is targeted exclusively at sophisticated investors who understand these risks and make their own investment decisions.