Crowdfunding – a funding revolution in 2013?
Will 2013 be the year for crowdfunding in the UK?
Will it become part of the funding landscape for charities and business?
This is Money thinks so making crowdfunding one of its top 5 business trends for 2013.
Crowdcube has been nominated for a number of awards including Moneyfacts Best Alternative Provider.
Buzzbnk has received major funding from NESTA, Esmee Fairburn Foundation, the Tudor Trust and others
Kickstarter which launched in the UK at the end of October has taken over £2 million in pledges for UK projects with 30 fully funded.
Why could 2013 be the year for crowdfunding?
- The concept is easy to understand – you post your business plan or project to a crowdfunding platform and ask people in your social networks to back you.
- Crowdfunding for equity sites CrowdCube, SeedRS and Bank to the Future have had some notable successes.
From Kickstarter’s statistics 39% of the 50,000 backers were from the UK. In the US 78% are from US backers so there is real potential for growth.
“Crowdfunding is a verb, hence the need to be part of the process, not sit back and expect the cash to flow in. Be Pro-active”!
Crowdfunding is also hard work and campaigns need to be actively managed and planned well in advance. So the statistics look good but are only a 7% success rate so far. So definitely watch this space!