Alternative Finance Survey – Investor Results

by | Dec 2, 2016 | CODE Investing News, Investment News

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Alternative Finance Survey Results: Investors. We find out what our investors value when it comes to deciding what SME businesses they want to invest in.

Alternative Finance survey

A couple of weeks ago we posted some of the results from small business owners who completed our alternative finance survey. This week we look at some of the responses we got from investors.

What do you want to invest in?

We wanted to know the sectors you are most interested in investing your money into.  The largest area of interest was fintech, mirroring the largest area that our SMEs are involved in too.  This was followed by property (also one of the largest sectors with our SMEs) and medical technology (medtech).

Investors & business sectors

Why invest in small business?

When it comes to why you want to invest in small businesses, other than financial gain, it turns out a quite lot of you are pretty altruistic with 31% stating you want to help early stage businesses to grow. Admittedly many of you are also looking to diversify your portfolio, and a further 28% are hoping to discover the next unicorn business.

 

How much do you like risk?

There’s always a degree of risk involved when investing in debt and equity. The question we asked you was how much risk is too much and how comfortable are you with it.

Investor risk levels

The majority of you told us that as long as you feel that the risk is qualified you’re pretty okay with it.  Only 9.5% of you like risk so much that you’d swim with sharks just for kicks. An even smaller number of you hate risk so much that you’d rather rely on the safety of an old fashioned piggy bank or wouldn’t risk anything more than buying a lottery ticket.

What makes an attractive investment offer?

When looking at investment opportunities, we asked you what the most important factors are that help you decide whether to invest.

What are the key factors for investors

The resounding answer was the balance between risk and the potential return you could make. The next deciding factor for you is who and how many key investors an opportunity already has.

How much control do you like to have over investment choices?

We asked if you would be interested in investing in a direct or co-managed portfolio of SMEs.  Over 70% of you would be interested in a co-managed portfolio, though many of you would still want to do some of your own due diligence occasionally too.

How much control do you want over your investment portfolio?

Thank You

Your feedback is of great value and helps us focus on what’s most important to you when it comes to your investment choices.

Whether it’s debt or equity, our aim is to make investing in qualified, high growth businesses as straightforward and transparent as possible.

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