Retail investors flock to sustainability firms
Retail investors have flocked to ‘cleantech’ and sustainability firms over the past three years as they look to capitalise on a wave of new entrants to the sector, crowdfunding data has revealed.
Data drawn from crowdfunding platform Crowdcube shows that annual investment into companies tackling climate related issues more than quadrupled from £8.3m to £39.8m in the three years to December 2021.
The platform, which hosts over one million individual investors, has seen a wave of new climate-focused firms looking to raise funds on the platform, with sustainable fundraising rounds increasing by 300% since 2018.
Crowdcube said that in comparison the number of companies raising funds in the fintech industry, traditionally the sector with greatest investor demand, had increased by 132% in that time.
Matt Cooper, Chief Commercial Officer at Crowdcube, said: “Rather than settling for ‘faceless’ ESG funds and ‘responsible’ pension pots, more retail investors are making more direct investments into businesses that are having a greater impact, companies they have got to know and trust to play their part in solving the enormous climate crisis puzzle.
“Direct investing helps them achieve that drive towards positive, impactful change.”
Some of Crowdcube’s most successful crowdfunding rounds this year include sustainable energy firm Marine Power Systems, which raised over £4m from 2000 investors, and agricultural technology firm Small Robot Company which raised £3.7m from around 2500 investors.