The UK has a rich history in entrepreneurialism and it’s this culture which has enabled crowdfunding to transform and innovate finance for startups and growing businesses.
Crowdfunding provides not only much needed funding, but validation, support and marketing upskilling. The beauty of the industry is that enterprises looking to the crowd for support must first show they are worth supporting.
Crowdfunding is providing a transparent and effective route to finance that’s not recently been that easy for start ups and communities with great ideas. The banks have had difficultly lending, grant criteria is getting harder to unlock. Crowdfunding has opened up the market – bringing democracy to a funding process that’s not been disrupted in decades.
You’ll have heard about equity crowdfunding - offering shares in your company for vast capital, very Dragons’ Den with the crowd standing up as investors. It’s a great forum for businesses to build the capital they need for fast growth – but is not a solution for early-stage start-ups, a community or an individual looking to raise funds without releasing equity.
In response, less publicised, but showing consistent and prolific growth is rewards-based crowdfunding. The ability to raise funds for your business with the supporters gaining a “reward” in return– anything from a wrist band for £5 showing support, to £2000 corporate pledges to make a community group, charity, social enterprise, sports project, or business… happen through a raft of transformational ideas.
Crowdfunding is providing the means to support people, projects and ideas by offering access to the right type of funding at the right time – be it rewards-based, equity or community shares.
The innovation in crowdfunding comes from the crowd themselves, not just by placing funds on the table to support brilliant ideas, but by bringing in fresh inspiration, feedback and support. Literally – placing the crowd as the drivers of these great ideas. What the crowd wants to make a reality – the crowd will step up and make a reality.
The crowd as a whole are delivering more than funds for an idea. They themselves become ambassadors, a part of the journey, engaged online alongside offline. The very act of pledging, investing or supporting an idea means that the market proof is there for all to see – bringing access to funds, democracy and transparency. Wildcraft Brewery raised over £20,000 with the support of over 330 backers, clear proof that the crowd thinks their business is worth supporting.
Crowdfunding is impacting on grant and fund distribution processes across the whole of the UK. Funding bodies, councils, and corporates are engaging on a mass scale with grassroots organisations and ideas by supporting hosted campaigns and importantly match funding projects that the crowd have supported. Plymouth City Councilleveraged £60,000 of funding into projects across the city, with the campaign itself having raised almost £500,000 in total for brilliant projects, businesses and ideas. This enables the council to work directly with the people making positive change, following the voice of the crowd by matching the funds raised by the community themselves.
Virgin Media Business have tapped into the crowdfunding market in spectacular fashion by opening up crowdfunding for all the businesses that entered their business comp,VOOM 2016. Over £700,000 has been raised by start-ups looking to not only gain finance to grow their businesses, but also get spotted by one of the world’s biggest business advocates – Sir Richard Branson.
Crowdfunding is unlocking potential across the whole of the UK – with over £2.4m of match funding open to businesses, communities, social enterprises and individuals on Crowdfunder alone, it’s clear that crowdfunding has become the go-to home for Great British innovation in business and finance.
You can’t go past a news paper, radio show or television news story these days without being flooded by all things Bitcoin or Crypto Currency. Some say it’s the new world of money while others suggest its all just a passing fad. Whatever your position or preference of...
This week I announced a suite of measures for the Government to consider when it comes to small and medium sized business and what we can all be doing as we start to look at emerging from the COVID19 lockdown. The reality is that a good number of small business owners,...
As someone who has been working in suicide prevention for some years now i know that often having a simple conversation can make all of the difference when a loved one is doing it tough. COVID 19 and the lock down tends to amplify how we feel when we are isolation or a...
We know that mob out there are uncertain as to what the COVID-19 / Corona Virus means for them – this can cause us all to panic and some in community more so that others. Panic attacks can compound the situation so we gather some information about what you can do now t...
Don’t forget our elders can suffer in silence too: suicide prevention
Many people think that mental health and suicide are not topics that impact our elders but they could not be more wrong. The data tells us there continues to be an emerging trend when it comes to peop...