The research will be conducted by the Cambridge Centre for Alternative Finance (CCAF) at Cambridge Judge Business School.

The CCAF claims to have the world’s largest online alternative finance data depository sourced from over 1,200 platforms.

The research aims to focus on the current state of the industry, look at how it is changing and develop an understanding of how investors are assessing risks and using the information provided to them by fundraisers.

It will also attempt to uncover how platforms and investors share the burden of due diligence.

The research will consist of investor and fundraiser surveys, qualitative interviews and crowdfunding platforms’ transactional databases.

The programme will contribute to the FCA’s ongoing post-implementation review of crowdfunding regulation.

Robert Wardrop, executive director of the CCAF, said: “It is our great pleasure to partner with the FCA in this joint thought leadership programme and provide independent academic evidence to support its post-implementation review of crowdfunding regulations.

“Since inception, the centre has strived to work with regulators and policymakers around the world to further our understanding of crowdfunding and other forms of online alternative finance, in turn, to inform evidence-based policymaking and regulation.

“We look forward to collaborating with the FCA very closely in the coming months to systematically collect market data, gather crowdfunding user feedback and undertake policy-related analysis.”