A third of entrepreneurs looking for investment say crowdfunding will be their most likely route, according to a report.

Law firm Irwin Mitchell conducted its research at the MADE Festival in Sheffield. Following a panel discussion on the topic of alternative finance, 75 entrepreneurs were asked to name their top choice.

The results showed that 32 per cent said they would turn to crowdfunding in the next 12 months, followed by 17 per cent considering person-to-person lending platforms and 13 per cent planning investment from business angels.

"What was clear from the discussion was that although many entrepreneurs have not yet used alternative forms of funding, it looks like many are happy to do so and will in the next year," said Andrea Cropley, corporate partner at Irwin Mitchell.

On the flipside of the discussion, 77 per cent of delegates said they would invest through a crowdfunding platform, compared with 63 per cent P2P and 69 per cent as an angel investor.

But 31 per cent said the crowdfunding industry needed better regulation and investors were at risk in some cases.